Help on buying a new home

If you have 20% down then a conventional loan is likely the best option.

Quote from johnfoe : If you have 20% down then a conventional loan is likely the best option.

Is there a site I can shop different interest rates, or should I just look at my local banks and credit unions?

I went local

Right now the rate should be around 3.5%

but the closing costs were the real items that I looked for when I was refinancing a few months ago

I would shop around and get a good faith estimate from each of them. There is a mortgage broker posts alot in this forum, I would check other mortgage posts and you will surely spot him. If you live in one of the states he is licensed for then I would check with him to get a competitive rate.

As long as your credit score is excellent then I wouldn't accept anything other than the best terms since you should be a very low risk with 20% down. A broker might be the best bet, but then again I went local since I couldn't find a broker that would spend time with me.

Quote from farmboy87 : Ok, so me and my wife are selling our home so that we can buy a bigger home for our increasing family. We are putting our house on the market this Monday. I want to make sure I have my eyes wide open. This site has helped me save thousands of dollars over the years, so I am asking for your help. I want your guys' help on finding the best interest rate. Also, I have been interested in buying a foreclosed house in a nice neighbourhood. Good idea/bad idea? I am a math teacher. And my school's website linked this site on it and said there was a discount on home loans for education employees. http://www.eduprograms.org/ Did not know what this site was about. Anyone know? My wife and I both have good credit. We will also be putting down more than 20%.

The website you refer to appears to be pushing FHA loans, which you do not need.
To be blunt, I am not impressed by what they had to say at all (i.e. 90 million in loans since 2001 is nothing; and there are many FHA lenders available).

As previously mentioned, with 20% down payment and excellent credit you will be in good shape for conventional financing. As you are already a homeowner you will be prepared for many things that a first time buyer needs to learn too.

Putting down 25%+ with outstanding credit can also put you in a better position to qualify for the best rates. An expereinced and knowledgable broker has wholesale conduits with lenders that offer better pricing for those parameters.

In respect to a foreclosue it is always a judgment call as to that particular home, but the nice neighborhood for a distressed sale, in my opinion, is a big plus if the price is right. Just be aware that many foreclosures, no matter where the neighborhood, have more deferred maintenance than an owner occupied property; so budget accordingly.

Good luck!

-Adam
Old Hippy & Mortgage Pro

Quote from farmboy87 : Ok, so me and my wife are selling our home so that we can buy a bigger home for our increasing family. We are putting our house on the market this Monday. I want to make sure I have my eyes wide open. This site has helped me save thousands of dollars over the years, so I am asking for your help. I want your guys' help on finding the best interest rate. Also, I have been interested in buying a foreclosed house in a nice neighbourhood. Good idea/bad idea? I am a math teacher. And my school's website linked this site on it and said there was a discount on home loans for education employees. http://www.eduprograms.org/ Did not know what this site was about. Anyone know? My wife and I both have good credit. We will also be putting down more than 20%.

Shop around for the best rates. Try local, try national.

Foreclosures require time and patience (it often takes weeks/months to hear from the bank) as well as a keen eye and some trust. There are many great deals to be had but there are also many horror stories -- people ripping pipes out of the wall, taking anything that's not bolted down, etc etc.

Do you have a place to live if your house sells quickly and you can't find something you like?

Good luck!

The rate isnt the only thing you should look for. Customer service, fees and the time it takes to close the loan are all important. I could get you a 2% but it will cost you a ton in fees, so if your goal is to find the lowest rate, there you go, but you dont care because its the lowest rate. Also, what if there is a good rate at a good cost, but it will take the company 120 days to close your loan, is that good either? Additionally, if you have questions but they never return your phone call, or never know what they are talking about, I know I wouldnt like that. Talk to other people and see if they have a specific person they have used and liked.

One you should know about realtors, is that their commission, in most states, is adjustable. It's not fixed. So if someone presents you a low ball offer, but you want to move, you may be able to change the commission of the buying agent.

Quote from discostu58 : The rate isnt the only thing you should look for. Customer service, fees and the time it takes to close the loan are all important. I could get you a 2% but it will cost you a ton in fees, so if your goal is to find the lowest rate, there you go. But you dont care because its the lowest rate. Also, if there is a good rate at a good cost, but it will take the company 120 days to close your loan, is that good either? Additionally, if you have questions but they never return your phone call, or never know what they are talking about, I know I wouldnt like that. Talks to other people and see if they have a specific person they have used and liked.

Excellent point. The days of "what's your rate?" are long gone and left for naive consumers.

Costs associated with the loan can obviously squeue the situation where you would actually be buying down the rate and not realizing it.

I am admittedly biased, but a good mortgage broker will also provide you a stack of rates and the pricing (cost or lender credit) associared with that rate, so you can make the best choice as to where you want to be. In some situations the lender credit for a slightly higher rate is so attractive (where it will take many years for the break even point) where the higher rate turns out to be the more attractive scenario.

Every scenario and needs are truly unique and the variables are there to make the best choices to suit your individual needs.

-Adam
Old Hippy & Mortgage Pro

Quote from drew2money : One you should know about realtors, is that their commission, in most states, is adjustable. It's not fixed. So if someone presents you a low ball offer, but you want to move, you may be able to change the commission of the buying agent.

This is true. They will sometimes lower their commission to get the deal to go through. Also, keep in mind some closing costs are negotiable. You can sometimes get the seller to pay part of the closing costs to get the deal complete.

Quote from tiedyed1 : The website you refer to appears to be pushing FHA loans, which you do not need. To be blunt, I am not impressed by what they had to say at all (i.e. 90 million in loans since 2001 is nothing; and there are many FHA lenders available). As previously mentioned, with 20% down payment and excellent credit you will be in good shape for conventional financing. As you are already a homeowner you will be prepared for many things that a first time buyer needs to learn too. Putting down 25%+ with outstanding credit can also put you in a better position to qualify for the best rates. An expereinced and knowledgable broker has wholesale conduits with lenders that offer better pricing for those parameters. In respect to a foreclosue it is always a judgment call as to that particular home, but the nice neighborhood for a distressed sale, in my opinion, is a big plus if the price is right. Just be aware that many foreclosures, no matter where the neighborhood, have more deferred maintenance than an owner occupied property; so budget accordingly. Good luck! -Adam Old Hippy & Mortgage Pro

Ok so are house is on the market.

What if I find someone who wants to buy my house? Like a friend of mine? Can I unlist with my realtor and sell it by owner?

Ok so are house is on the market.

What if I find someone who wants to buy my house? Like a friend of mine? Can I unlist with my realtor and sell it by owner?

You can always pull the listing from the Realtor, however, you have a listing agreement with your Realtor which you need to review the terms of your contract before doing anything.

Review the terms of your existing contract and then follow accordingly to get out of it without being liable for any fees owed them for services they may have rights to. (i.e. I can see them keeping a record of whom they have shown the house to and it would be expected for them to have rights to those potential buyers.)

Quote from farmboy87 : Ok so are house is on the market. What if I find someone who wants to buy my house? Like a friend of mine? Can I unlist with my realtor and sell it by owner?

probably not. read the contract that you signed. Most contracts force you to be with that realtor for 3-6 months before taking them off the property. Unless they do something that violates their end of the agreement, of course.

Quote from bonkman : probably not. read the contract that you signed. Most contracts force you to be with that realtor for 3-6 months before taking them off the property. Unless they do something that violates their end of the agreement, of course.

Yes, read the contract very closely. I had a contract with a realtor that said I have to use them for the next 6 months. Otherwise, when they find out you sold it without them, there could be a lawsuit.