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First Time Homebuyer.... Not sure where to start...

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Lemmus
Established Contributor

Re: First Time Homebuyer.... Not sure where to start...

...always apply with a mortgage broker if only so you can rate compare ...I used 3 different sources and the rates varied by 0.75% ...thats a lot of money over 30 years.

...the current FHA minimum score is 580 ...you may have misunderstood or the lender has an overlay

...Jan 26th is the date the new FHA PMI rates go into effect ...BUT Jan 28th is the next FED meeting and lots of people expect them to raise the prime which will ripple raise all mortgage rates ...in your case I'd try to get a 30-45 day rate guarantee before the 28th ...hth


Helpful Links: Do I Qualify? | Mortgage Calculator | USDA Mortgages | Opt Out | FICO Versions
Last HP: 11/04/15 | myFico 3B Jun 10 '15:FICO8 EQ - 752 | TU - 763 | EX - 750
Message 11 of 13
jordy
Contributor

Re: First Time Homebuyer.... Not sure where to start...


@Lemmus wrote:

...always apply with a mortgage broker if only so you can rate compare ...I used 3 different sources and the rates varied by 0.75% ...thats a lot of money over 30 years.

...the current FHA minimum score is 580 ...you may have misunderstood or the lender has an overlay

...Jan 26th is the date the new FHA PMI rates go into effect ...BUT Jan 28th is the next FED meeting and lots of people expect them to raise the prime which will ripple raise all mortgage rates ...in your case I'd try to get a 30-45 day rate guarantee before the 28th ...hth


hmmm... i was favoring my local community bank (simply customer service, and ease) but it sounds like rate shopping may be a better idea... do i have the community bank pull credit and attempt a pre-approval and ask for a gfe and then go some where else and do the same or would this hurt my approval chances in some way? not real sure on the best way to "rate shop"

 

i did make sure to ask on the minimum score because it caught me off guard and she stated it again... i assume that's their own overlay...

 

as far as the new PMI rates go in relation the the expectation of the new prime rates possibly being raised...what would be the best route to go... do i attempt pre-approval now and see if they will lock the new lower rates or do i wait until the 26th? i know there is no way to be certian if the prime rate will raise but for the lower pmi if i pre-approve now will they be able to "change" it after the rates change on the 26th as closing will certianly be after that date?


Starting Score: EQ 623 (1/28/10) TU 666 (1/28/10)
Current Score:  EQ 666 (3/4/10) TU 708 (3/4/10)
Goal Score:    EQ 680TU 700
Message 12 of 13
Lemmus
Established Contributor

Re: First Time Homebuyer.... Not sure where to start...


jordy wrote:

hmmm... i was favoring my local community bank (simply customer service, and ease) but it sounds like rate shopping may be a better idea... do i have the community bank pull credit and attempt a pre-approval and ask for a gfe and then go some where else and do the same or would this hurt my approval chances in some way? not real sure on the best way to "rate shop"

i did make sure to ask on the minimum score because it caught me off guard and she stated it again... i assume that's their own overlay...

as far as the new PMI rates go in relation the the expectation of the new prime rates possibly being raised...what would be the best route to go... do i attempt pre-approval now and see if they will lock the new lower rates or do i wait until the 26th? i know there is no way to be certian if the prime rate will raise but for the lower pmi if i pre-approve now will they be able to "change" it after the rates change on the 26th as closing will certianly be after that date?


...absolutely go rate shopping ...and don't be shy about using one vs the other ...one offered me 4.5 ...already have a 3.5 offer on the table ...but one has big fees and the other doesn't so you have to run the numbers ...and read any pre-qual stipulations fine print ...some real gems can be buried in there ...and if you have a decent RE agent, they should be able to tell you which lenders to stay away from no matter what the offer is

 

...certainly a difference between what the FHA requires and what the lender may require ...especially for lower rates ...one more reason to shop lenders ...ask your RE agent to recommend a mortgage broker ...the broker will have many loan sources and can often find a better "fit" for your needs ...a broker is offering the lowest rates in my case ...there are mortgage brokers on this forum, hopefully one will offer his/her insight

 

...I'm going the USDA loan route and they already offer a very low PMI, less than the new FHA rates so I can't really suggest the best approach in your case ...I'm going to get a rate lock as soon as I have an offer on the table which I hope and pray will be in the next 2 weeks ...we're shopping ~400 miles from where we live so looking at homes is a trial ...I envy your situation.


Helpful Links: Do I Qualify? | Mortgage Calculator | USDA Mortgages | Opt Out | FICO Versions
Last HP: 11/04/15 | myFico 3B Jun 10 '15:FICO8 EQ - 752 | TU - 763 | EX - 750
Message 13 of 13
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