topic Re: Advise about buying my first house in Nov-Dec in Mortgage Loans

Advise about buying my first house in Nov-Dec

Anonymous — Thu, 02 Oct 2014 00:56:55 GMT

Re: Advise about buying my first house in Nov-Dec

Anonymous — Sun, 21 Sep 2014 13:46:12 GMT

You're in a pretty solid position. It's perfectly fine to shop around in that timeframe. You will be in 2 years by the time you formally submit an application so that's no worry.

Your DTI should not include your rent. Just credit/loan payments. But with $7K a month income I'd imagine you're in a solid position anyway. Your front/back DTI looks ok assuming your rent is a significant portion of your monthly Debt. With a score near 750 bringing your utilization down some could improve your rate but more than likely by a minimal amount. 760 is considered top tier for interst rate. But you'd be able to do a 5% conventional and cover mostly all the expenses/closing costs yourself. I'd keep the cash and apply it to downpayment. Closing costs are usually 1% origination fee and maybe some other smaller fees. 750 to 760 is most likely an 1/8th point difference tops. What source are you pulling scores from? If it's from myFico it's an 08 score and you'd benfit more from an 04 score like Equifax scorepower. Bottom line you're not going to know for sure until you get preapproval and have the lender pull your scores.

5% down conventional looks like your best option. You look solid in every aspect for that price of property. Can't imagine you'd have any trouble as long as your income is easily provable.

Re: Advise about buying my first house in Nov-Dec

Anonymous — Sun, 21 Sep 2014 16:01:07 GMT

EricDET, thank you for your advise. I will plan on a 5% down conventional loan.

So far, I've only pulled my FICO. I will pull an Equifax scorepower as you suggest to see what that score is.

Because I'm putting down less than 20%, should I expect to pay PMI? If I'm being told by a lender that they will require PMI, should I keep looking?

How does one begin mortgage shopping? Websites like Lending Tree, Bankrate, etc? Are there some specific banks or types of lenders that I should stay away from? Is it true that the local, hometown bank is going to scrutinize my application much more than a larger, national bank would?

Re: Advise about buying my first house in Nov-Dec

Anonymous — Sun, 21 Sep 2014 20:15:18 GMT

Yes you will pay PMI. Either paid by you monthly until the LTV is 78% or by the lender. If its lender paid you will just pay a higher interest rate for the life of the loan. If a lender tells you they don't require PMI.... You're going to pay a higher rate. No other way around it.

When it comes to shopping rates. Just pick out local places that have the best reviews or go through your Realtor to see who they recommend. I wouldn't worry about being scrutinized in your buying position. You're pretty much an ideal customer. Just make sure you're doing your rate shopping all at the same time. The inquiries will all be counted as one.