Want to buy a new house

[kilee]

I want to buy a new house, but I truly don't know where to start. The house we are in now-- just makes me miserable. I can't stand the neighboors or the area, also it needs soooo much work and I don't want to do it- because I don't like the house. It's also too small for our family.

Anyhow, we really can afford almost double and a half of what our current mortgage is. So I think it's time to start house shopping. The problem-- I don't know where to start.......

The house we are in now was a private sale w/ an owner held mortgage. I don't know where to start looking for a mortgage. Most likely we are going to have to get a more non-traditional mortgage. As we had some financial issues a few years ago that left some marks on our credit reports. It was a really rough patch but has been behind us for 4-5 years.

What I'm wondering is where do I begin to look for a mortgage pre-approval???

 

[Dan Murphy]

I would start by trying to get several referrals from friends and/or family who have been happy with a realtor they have used, interviewing them and deciding on one for guidance. And good luck.

 

[Mackey Mouse]

Hmmm.. go to your bank, maybe one you have savings or checking. see if they do mortgages and ask if they will preapprove you for whatever amount you plan on buying.. Did that make sense?? In other words, you give them a figure you are planning on and I think there is paper work involved and they will preapprove you.. Or you can go to a mortgage company and do the same thing..

I just reread what you wrote, maybe a mortgage company might be more willing to help you or as Dan said, work with a realtor who can set you up with a company or bank that might preapprove you.

 

[soccerchick]

Good advice so far...Find a realtor you feel comfortable with -- interview several. He/She should be able to get you in touch with a mortgage broker to run your numbers and pre-approve you for a certain amount. It might also be helpful to talk to a financial advisor/credit counselor to see if there are some easy things you could do to improve your credit score. The higher your score the better your interest rate.

I love my real estate agent -- she is worth her weight in gold. We've gotten so much good advice from her and made lots of $$$ by listening to her.

Good luck!

 

[mermaidlady]

If you are buying a "new" new house then the builder will have a preferred lender. Also we had some issues with our credit. We had no problems qualifying for a loan I understand your frustration with your house we had same issues, too small and in a neighborhood that was going downhill. We have been in our new house for 3 years next week and I still love it.

 

[Simba's Mom]

We just bought a new house a few months ago, and there was lots of helpful info on the internet. Just do a search on "mortgages". Also, you might want to check out this website for houses (and I think they have access to some other info):
www.realtor.com

 

[Poohnatic]

Get an idea of what your Fico score is. I recently ordered my credit reports for all three credit reporting agencies at www.myfico.com. When you do this, you also get your fico score. It's helpful when you see a loan officer and you're already aware of what the numbers look like.

There's a wealth of information on the myfico website on what kind of interest rates you can expect with your score.

I went there thanks to an article in the Washington Post that listed what kind of mortgage you can get based on your score. Basically, anything under 620 would be considered 'sub prime', and below 600 probably wouldn't get a mortgage. But there are easy ways to improve your score and getting over 620 will bring you into the Fannie Mae and Freddie Mac mortgage arena.

I, too, had an seller financed first mortgage. While we were in the house, I had no trouble with obtaining credit even though the house didn't show up on the reports. The lesson I learned was expensive-he financed because he knew that there were issues with the house that no bank would finance it, once an appraiser looked at it!

Good luck!

Suzanne

 

[kilee]

Thanks everyone for all the help!!!!

 

[oogieboogie]

Before thinking of buying a house, I would clear up the credit report first. Some legwork in the beginning will help you in the end overall because you might get lower interest rates, better mortgage deals overall.

1. Get your credit report

2. Go to the www.creditboards.com and ask the experts there what you can do to improve your credit

This alone will take some time, but it'll be worth it if it means you will save thousands of dollars on interest alone.

Good luck!

 

[missypie]

The issue of "pre-approval" confuses some people. You are expressing it correctly...you want your CREDIT approved for a certain amount in advance. But just because your credit has been pre-approved, it does not mean that the lender is guaranteed to make a loan on a particular house...it still has to appraise for enough and be otherwise acceptable to the lender.

A friend of mine ran into this a couple of years ago. She was "pre-approved" but her lender refused to fund a loan on a particular condo because they didn't like something about the condo documents.

As long as you aren't paying above market and all the applicances work, you should be okay.