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|Topic Review (Newest First)|
|10-07-2012 07:35 PM|
FWIW, rates have been "low" for 5 years and they keep dropping. What makes you think they're going to all of a sudden take off and you're stuck paying 8% or something?
Other than that, I think you need to set some very specific short and long term goals to say organized and on track.
|10-07-2012 07:26 PM|
Congrats on the marriage plans and trying to organize your life. If you don't mind me asking, where in Cook County? I happen to know there have been some recent deals in the NW suburbs where I grew up, but Cook County is a big place. Based on the price I can make a guess on a couple of areas but they're pretty far apart from each other.
When it comes to home buying, especially first home buying, be patient. Current rates are irrelevant if you're not looking to buy ATM. IMO, the most important criteria is predicting future plans and having backups. Are you looking to make this your house for ever and ever? Or do you want a starter home and plan to upgrade in a few years? If it's the latter, you're more concerned with getting a good deal on a house that you'll be comfortable in, but not necessarily be ecstatic about. If it's the former, you want to find a place that'll make you happy for a long time and you can grow into. In all cases, it's the bones of the house that need to be examined, rather than the flash and glitz. You can always add on (though depending on where you are, the town can make it EXTREMELY annoying), but if the core structure is falling apart or if there's water/mold/etc, you're just throwing your money away (no matter how nice that game room/media room/master bed/etc is). Will you be ok if something bad happens? Will the house you pick require you to sell if one of you loses your job or do you have other investments which can be liquidated if need be?
And try to put 20% down. If not, as others have mentioned, you'll need to pay PMI which can be a SIGNIFICANT percentage of your mortgage. However, some mortgage companies will let you roll PMI payments into your mortgage (which doesn't make sense to me, but whatever) so if you get a good rate it may add only a few bucks a month to your payments rather than hundreds.
Again, 1-2 years is a long time. Start saving and planning now. Perhaps you'll stumble into a good deal earlier than that. But also try to work out your fiancees debt.
|10-02-2012 05:52 PM|
Mortgage Brokers have wholesale conduits and deliver competitive rates/pricing with superior service.
The Broker Compensation received is paid by the lender and is reflected as an additional credit passed to the broker.
Old Hippy & Mortgage Pro
|10-02-2012 05:47 PM|
|10-02-2012 08:25 AM|
I might be mistaken, but aren't the fees from a mortgage broker rolled up into the mortgage? So although there is no out-of-pocket costs up front, it does affect their rate, where a buyer who is eligible for a .0325 rate will now receive a rate of .0350 or .0375 to offset the fee that the lender pays the mortgage broker?
|10-02-2012 08:05 AM|
|BlueOvalStangGT||How much does it normally cost for a broker?|
|09-29-2012 12:00 PM|
For example, while Fannie Mae has a cap of 45% for debt to income on most transactions (i.e. everything except HARP), Freddie Mac will often go up to 50%. A broker will be able to run your loan through a variety of conduits and they have wholesale relationships with many lenders, each of whom also have their own specific guidelines which then the broker knows where to best direct your loan.
An expereinced broker will also have established relationships with the individual actually Underwriting your loan. Many times I discuss a borrowers tricky scenario with a specific underwriter prior to even submitting the file; then when submitting the file make sure the file will go directly to that Underwriter I have already worked out the quirks with.
I am obviously biased, but a qualified mortgage broker is much better for the consumer than walking into a bank and waiting weeks to get an answer. The broker can get the answers instantaneously as they have direct access to Fannie and Freddie's automated systems and will process everything first hand (instead of sending your documents off to a processing center).
Plus as this is SlickDeals, the broker customarily can deliver better pricing than anything most of the national big banks can offer.
Old Hippy & Mortgage Pro
|09-29-2012 07:33 AM|
A mortgage broker is alot more flexible in what they will give and your credit history than a bank or someplace like a Prudential.
The bank will look at your debt to income ratio as a percentile and if you fall out of a certain range you wont get approved. A broker will look at other things like age , potential future income, the kinds of debt ecc and they have more flexibility in the decision process.
|09-28-2012 04:23 PM|
If you want to be safe, first try to stay for as long as you at your rent free place. Then try to save 40% of the total housing cost. Here are the reasons why.
20% for down payment but you will need money on top of that for closing cost. Also you will want/need to buy stuff when you move in. People always overspend when they buy a new home. Also that 40% should include some fund to put aside for unexpected cost such as repair and fix up for the house.
Also the mortgage + housing expenses such as insurance/water/gas should be less than 1/3 of the joint income. Also shop around for lower interest rate, makes a big different in long term.
|09-28-2012 10:59 AM|
Now, if she had a problem managing money, then I would have ran a long time ago. She's actually pretty decent with that (as in, I don't have to worry about her splurge-buying a new car or wasting money on stupid knick-knacks).
Thanks for the advice all!
|09-28-2012 05:18 AM|
|09-27-2012 10:17 PM|
|chaozz||be careful getting married to someone with bad debt..|
|09-27-2012 11:49 AM|
20% down and above 740 will get you 3.375 with no points at penfed.
|09-26-2012 06:52 PM|
|09-26-2012 06:21 PM|
|aab0908||With my credit union, they don't have differing rates for lower scores. As long as you are approved, they give you whatever their current rate is. Then, even if you aren't approved with the loan officer, you can appeal the decision to a committee. So, long story short, check with your credit union! You don't have to apply or anything but they should be able to answer your questions better than we can. Also, if your CU is like mine, if they have pulled your credit before, they will have it saved and from what my guys was saying, he would've had a better idea of what I was working with even without filling out paper work or anything.|
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