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Started By
Message
First time home buyer info needed
Posted on 9/27/17 at 7:00 pm
Posted on 9/27/17 at 7:00 pm
I need some good literature on buying a home. We’ve gone through some prequalifying steps already but getting mixed information from everyone I talk to about conventional vs FHA loans.
Where is the best place to obtain knowledge on purchasing a home and mortgage lending?
I’d like to know more about the different types of loans, PMI, and closing cost.
Where is the best place to obtain knowledge on purchasing a home and mortgage lending?
I’d like to know more about the different types of loans, PMI, and closing cost.
7
Posted on 9/27/17 at 7:18 pm to TigerGM
Do you know what home you want to buy? Is a purchase agreement agreement filled out? How much money are you planning to put down?
Posted on 9/27/17 at 8:27 pm to TigerGM
I suggest calling or meeting a loan officer. They should be able to answer a lot of questions.
FHA PMI stays on for life of loan
Conventional PMI falls off when 80% loan to value (I think)
FHA PMI stays on for life of loan
Conventional PMI falls off when 80% loan to value (I think)
Posted on 9/27/17 at 9:15 pm to HailToTheChiz
It doesn't just fall off.
Posted on 9/27/17 at 10:25 pm to LSU1018
We are looking right now. We are looking in the 300k range. Got about 20k to put down. We’ve been to two loan officers. Had some conflicting feedback on FHA and conventional. I just want to make the most educated decision.
Posted on 9/27/17 at 10:43 pm to TigerGM
Have you looked into a USDA loan?
Posted on 9/28/17 at 12:50 am to TigerGM
quote:
We are looking right now
Where are you looking? A handful of miles can make the difference in the types of programs you will be eligible for. Some loans also have strict stipulations on the condition of the house.
Posted on 9/28/17 at 5:58 am to TigerGM
quote:
Had some conflicting feedback on FHA and conventional.
What specifically did you hear that doesn't jive? The difference in the two products isn't that complicated.
Posted on 9/28/17 at 6:17 am to ATLdawg25
In his defense, some loan officers are much more knowledgeable than others. And, then some are just wrong. Perhaps that's where the conflicting info comes into play.
Posted on 9/28/17 at 6:25 am to TigerGM
Call Chuck Coghlan at Assurance Financial. He is very knowledgeable and will go over all information.
Posted on 9/28/17 at 7:00 am to CorkSoaker
quote:
In his defense, some loan officers are much more knowledgeable than others. And, then some are just wrong. Perhaps that's where the conflicting info comes into play.
For sure. Usually it is black and white though - if he posts his concerns here, I am sure we would be able to give him what he needs to go back to the loan officer and ask some more pointed questions.
Posted on 9/28/17 at 7:05 am to TigerGM
The rate on FHA and conventional may not be the same but you won't know that until you find your property bc rates change daily. Most people with good credit go conventional bc it's normally the better deal. FHA you can't remove the pmi. Conventional, you can get PMI removed once you reach 78% loan to value I think but it's a process. You have to contact the lender and then you will have to pay for the appraisal out of your pocket.
Do you have a realtor helping you? If not, put your email down and I'll shoot you some other things to look for when choosing loan officer, title company, etc. If you do have a realtor, they should be able to help you but don't blindly trust who they recommend. Call people yourself to quote their fees.
Do you have a realtor helping you? If not, put your email down and I'll shoot you some other things to look for when choosing loan officer, title company, etc. If you do have a realtor, they should be able to help you but don't blindly trust who they recommend. Call people yourself to quote their fees.
Posted on 9/28/17 at 8:15 am to TigerGM
FHA is typically more profitable for the LO, so if close they will try to steer you there.
Posted on 9/28/17 at 8:36 am to TigerGM
FHA is easier to get for young buyers with little or perhaps spotty credit, and less saved for down payment, but they pay for it in the form of mortgage insurance.
Conventional appears to be the better deal for those with good credit and cash on hand for down payment, especially if they can swing 20% and avoid PMI.
If you can't make a big down payment, FHA may be the better option and allow one as low as 3.5%, but a "significant disadvantage of an FHA mortgage is that you will have to pay a mortgage insurance premium up front and for many years, possibly for the entire length of the loan." See 2nd link below.
Experienced real estate agents often know a lot about the pros and cons of various financing (VA, FHA, conventional, etc.), but some are clueless.
A good agent should be able to, maybe with an assist from a closing/title firm, to estimate the closing costs and monthly payments for a particular house under the mortgage options.
FHA vs. Conventional Mortgage: Which Loan Is Right for You?
FHA vs. Conventional Mortgage Loan: Weighing Your Options
Conventional appears to be the better deal for those with good credit and cash on hand for down payment, especially if they can swing 20% and avoid PMI.
If you can't make a big down payment, FHA may be the better option and allow one as low as 3.5%, but a "significant disadvantage of an FHA mortgage is that you will have to pay a mortgage insurance premium up front and for many years, possibly for the entire length of the loan." See 2nd link below.
Experienced real estate agents often know a lot about the pros and cons of various financing (VA, FHA, conventional, etc.), but some are clueless.
A good agent should be able to, maybe with an assist from a closing/title firm, to estimate the closing costs and monthly payments for a particular house under the mortgage options.
FHA vs. Conventional Mortgage: Which Loan Is Right for You?
FHA vs. Conventional Mortgage Loan: Weighing Your Options
Posted on 9/28/17 at 9:25 am to Twenty 49
Can you not refi a FHA loan to get rid of the PMI?
Posted on 9/28/17 at 9:34 am to 50_Tiger
yes but at that point, you don't know what the current interest rate would be and you would have to pay for a refinance.
Posted on 9/28/17 at 10:56 am to TigerGM
You should look into getting a conventional loan with 5% down. You can also find some lenders willing to give you a higher rate, but no pmi. You will have to do the math to see if that is better for you or not.
Posted on 9/28/17 at 11:37 am to LSU1018
quote:
Conventional, you can get PMI removed once you reach 78% loan to value I think but it's a process. You have to contact the lender and then you will have to pay for the appraisal out of your pocket.
If you reach 78% of the original loan, I don't think you need an appraisal.
Posted on 9/28/17 at 1:59 pm to Croacka
slight hijack - we are buying our first home at the moment, we are fully qualified for an FHA loan, but on track to be approved for a USDA loan by the end of the year (waiting for credit score to rise a little).. from everyone that I’ve spoken to locally, they keep bringing up grant programs.. one guy even told me he was given around $100K from a grant, and if he stays in his house for a certain amount of time, he is forgiven from that loan... wtf are these people talking about??
I don’t NEED these ‘grants’ per se, but shite, if they are giving out opportunities like that, I’d be a fool to not at least look into it... and fwiw, I’m assuming that this is total BS, word of mouth type stuff
OP - sorry for the hijack, maybe you can get some useful info from my question
I don’t NEED these ‘grants’ per se, but shite, if they are giving out opportunities like that, I’d be a fool to not at least look into it... and fwiw, I’m assuming that this is total BS, word of mouth type stuff
OP - sorry for the hijack, maybe you can get some useful info from my question
Posted on 9/28/17 at 2:51 pm to Croacka
I still had to get an appraisal done on mine a couple years ago. They may have changed it.
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