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Franklin Said:

How to choose mortgage lender?

We Answered:

FICO scores 300 to 850, so you can't have an 890. Your best bet for buying a home is agreeing to a price verbally without signing something unless you are afraid of losing that price. They will want a 500 payment to honor thier price and give you 30 days to get the financing, so you need to get a verbal agreement on price from the owner before looking for a mortgage provider. I suggest bankrate.com to find a mortgage company or bank to finance your house. They will want 1200+ for closing cost. Get a good faith estimate on closing costs and APY interest and insurance(know exactly what they want from you per month before laying down $ to any lender and don't let them screw you on closing costs which is oftentimes the case)..if the owner agrees to leave the fridge and washer and dryer make sure its in the contract and go to your county clerks office at the courthouse to find out how much they paid for the house and if THERE ARE ANY LIENS ON THE HOUSE(unpaid taxes). You'll have to go thru their title lady usually the owners..good luck with all this uggg

Zachary Said:

Where to go for mortgage pre-approval?

We Answered:

Well you have a few options as to where to go to get a mortgage. You can contact your personal bank that you bank with to see what they can do for you in regards to a mortgage. You can contact another bank or mortgage company such as National City, Wachovia, Quicken Loans, Countrywide, etc... Lastly, you can contact a mortgage broker and they will shop your loan with numerous banks to find the best rate for your situation. There are pros and cons to each type of lender. I would recommend that you contact 2-3 different companies, compare their good faith estimates and the rates that they quote you and go with who you feel the most comfortable working with. The links below contain information about buying your first home and mistakes to avoid when buying a home. Good luck.

Todd Said:

First time home buyer has FHA loan question.?

We Answered:

Not all brokers/lenders are approved to offer FHA loans so that is your first step, find an approved broker/lender.

Here are a couple of things a first time buyer should consider.

1) Communication - You will need/want a banker/broker who will educate you about the entire home buying process. Someone who will take the time to explain all of your options and answer all of your questions in a straight forward manner. You want them to keep you informed and updated through out the entire process. You will drive yourself crazy wondering what's going on with your loan without this!
2) Responsive - Does it take them 2+ days to return a call or respond to an email?
3) Interest rate and fees.- Are they competitive? You may pay a little more but if you receive this kind of service it will be well worth it.

Velma Said:

We've been preapproved for a mortgage and found a home for sale by owner, if we choose to put in an offer, our?

We Answered:

For Sale By Owner transactions are done all day, every day, by banks and are not treated much differently.

Sweetie, your broker is filling your mind with a risk that doesn't exist...there is nothing complicated by your transaction. While it is normal and customary to give the earnest money to the listing agent's broker, there is NO RULE that says it has to be the listing agent....it can be YOUR agent's broker...or the trust account of an attorney representing the seller.

How the earnest money is handled from there is regulated by state law...it cannot be released without the consent of all parties involved REGARDLESS OF WHO holds the funds...trust accounts are legally protected....the only thing you would not do is give a person, an individual the earnest money because they don't have a trust account.

I find it odd, very, very odd, that your Realtor doesn't know how to handle a FSBO transaction.

Sounds like someone that is inexperienced to me. Very inexperienced.

PS: If you do not have a licensed Realtor involved in the transaction...then a real estate attorney can do the same thing...Kempark is very incorrect. The only difference is that a real estate attorney isn't going to help you negotiate a price, repairs, work you through inspections, etc.

Maureen Said:

How is Freddie Mac different as a mortgage lender than traditional lenders?

We Answered:

Freddie Mac does not give you a mortgage directly as a "traditional lender" does. Instead, Freddie Mac buys the mortgages that you get from traditional lender, who processes your application and gives you the mortgage. You cannot apply for a mortgage directly to Freddie Mac.

Miriam Said:

How many lenders should I check with for mortgage?

We Answered:

not sure what you mean "choose among the lenders" all you need is one...and the one giving the lowest interest would by my choice. All lenders are supposed to have done their own personal appraisal so they would lend to you according to that. Yes, the more you check with the worse your credit report looks. The other thing you would want to do is to read the fine print of the contracts of the two lenders you have already. Any one that wants a balloon payment from you, well toss that contract. If there is one (of the two) that says if you're in trouble repaying the loan that you could add a payment or two to the end of the mortgage payments then you might want to use that company.