2pumpchump LSU Fan Atlanta Member since Nov 2011 10 posts
Best approach to shop mortgages (Posted on 4/2/12 at 6:37 pm)
I just went under contract to purchase my first property - a condo. I have great credit, and I want to be sure I get the lowest interest rate. Is there a good way to ensure you get the best deal?
hawkeye007 LSU Fan greenwell springs Member since Feb 2010 1234 posts
re: Best approach to shop mortgages (Posted on 4/3/12 at 11:37 am to 2pumpchump)
CONDO please tell me you bought it for 25% below market value..if you didnt i pray for you..CONDO's are a pain for a mortgage lender. they requrie between 20-25% down for a conventional loan and the condo assoc. must be approved. If you are lucky enough to find one approved by FHA you can put 3.5% down but there is only a few that are approved. I would start with a local bank or lender. if you go on a website you will get massive amounts of calls from guys like me
tirebiter LSU Fan ATL Member since Oct 2006 4468 posts
re: Best approach to shop mortgages (Posted on 4/3/12 at 1:29 pm to HeadyMurphey)
quote: Good luck selling that condo. Haven't heard a successful story yet
Recency bias. We made > 60% on the only condo we ever owned with a holding period of 2.5 years. The guy we bought it from sold it to us for $2k less than he bought it for new and he held it > 12-years. YMMV, it was 1996-1998.
I helped someone sell a condo out of state in 2009 and they lost about $5k all-in in 2009, that one was dicey, and they came out great compared to what could have happened.
People are buying very nice condo's in good areas here in ATL at 40-50% below 2007 values, they will make money at some point, and will likely do quite well.
GFunk LSU Fan Denham Springs Member since Feb 2011 7643 posts
re: Best approach to shop mortgages (Posted on 4/3/12 at 1:38 pm to hawkeye007)
quote: CONDO please tell me you bought it for 25% below market value..if you didnt i pray for you..CONDO's are a pain for a mortgage lender. they requrie between 20-25% down for a conventional loan and the condo assoc. must be approved. If you are lucky enough to find one approved by FHA you can put 3.5% down but there is only a few that are approved. I would start with a local bank or lender. if you go on a website you will get massive amounts of calls from guys like me
I've salivated over some condo's on the Amite River Diversion Canal for almost 7 years now. I can remember seeing them selling for $125K for about 1200SFLA w/storage & a boat slip with a 2nd story balcony overlooking the water.
Now my fiancee doesn't want to live out there, even though I've found one for 15K less than what I would've paid for it 7 years ago
tdg McNeese State Fan Member since Sep 2009 151 posts
re: Best approach to shop mortgages (Posted on 4/3/12 at 2:24 pm to GFunk)
Just call 3-5 lenders and pick the lowest one - most will give you a quote over the phone. I know it sounds obvious but this approach has worked for me several times. I found it was not worth trying to negotiate with the lenders because some just are not as motivated as others to make the loan.
LAmagnolia Akron Fan Nawlins Member since Jul 2009 177 posts
re: Best approach to shop mortgages (Posted on 4/4/12 at 1:56 pm to hawkeye007)
quote: please tell me you bought it for 25% below market value..if you didnt i pray for you..CONDO's are a pain for a mortgage lender. they requrie between 20-25% down for a conventional loan and the condo assoc. must be approved. If you are lucky enough to find one approved by FHA you can put 3.5% down but there is only a few that are approved. I would start with a local bank or lender. if you go on a website you will get massive amounts of calls from guys like me
This is the thing I don't understand about condo mortgages. Say you're approved for a loan on a condo that's $75,000 (no higher than this).
Is FHA going to be taking the HOA fees into consideration? 'Cause if you can only afford $350 per month (according to FHA), wouldn't condo fees of $150 per month completely defeat the purpose of staying within the buyer's budget??
