Ok, so I need to buy a house -

But I haven't the slightest idea where to begin.

What is PMI?
Any kind of break for first time buyers?
Do I need to get pre-qualified?
What's a good rate?

I'm a HUGE researcher = but I'm a bit overwhelmed and really need to get a jump on this.

Is there anyone out there that can help me?

Message edited 12/14/2006 10:00:11 AM.

Re: Ok, so I need to buy a house -

Best bet:

Go visit a local bank(s) and speak with their mortgage person. Girls have had good luck (including myself) with HSBC, but try Washington Mutual, and any of the Federal Savings Banks in the area. They can tell you what their going interest rate it, etc, and whoever you choose to go with can get you preapproved for a mortgage. We had to bring in each 2 paystubs to show how much we make in a month and last year's W-2 statement. You cna hold onto your preapproval for 90 days and can be reknewed by bringing extra copies of your paystubs to the bank at the end of the 90 days. At least this is the case for HSBC - and they don't charge you for the loan application ($325) until you find a house and get an accepted bid and loan goes live.

As for PMI - that's added if you can't afford to put 20% down on a house, but a mortgage person can better explain this and how much it costs.

As for 1st time buyers: There is HUD, and a few other subsidaries that can offer help to new homeowner's but it's all dependent on how much you annually gross. The mortgage person can explain this better and tell you what your able to get/apply for.

Rates are anything below 6.5% right now.

If you have any questions, feel free to FM me, or if you want the mortgage person's name I use at HSBC, let me know, he's happy to help and works out of 3 branches in the area, makes night visits and is wonderful to work with!

Re: Ok, so I need to buy a house -

I was like you also and very overwhelmed. I sat down to talk with a mortgage broker that was friends with my boss. He explained everything in detail and helped me research the best options for me. If you want his name and number let me know.

Re: Ok, so I need to buy a house -

Re: Ok, so I need to buy a house -

PMI - someone already explained it but, basically its insurance the lender has if you put down less than 20%. They want to make sure if you default on the loan they are covered in some way. If you are putting down less than 20%, you can avoid PMI by taking out 2 mortgages - for example an 80/20 is common. The first mortgage is for 80% of the loan amount and the second mortgage is for the remaining 20%.

Pre-qualified is good, pre-approval is better. Pre-qualified they can do by asking you a few basic questions. Pre-approved they will probably do a credit check and will have a better idea if you will actually get the loan.

As for the areas you are looking - I don't konw much about them, but you can check out listings on MLSLI to see whats out there in your price range.

Re: Ok, so I need to buy a house -

Thank you, ladies!!

Re: Ok, so I need to buy a house -

Rolling PMI costs into the cost of the mortgage is better than taking out a piggyback loan. Interest rates for the second mortgage are much higher and the amount you pay in interest will most likely exceed PMI - but do the math, I'm sure each situation is different.

Re: Ok, so I need to buy a house -

Hey Mary...I don't have a clue about anything you asked...just wanted to say Good Luck and Best Wishes!

Re: Ok, so I need to buy a house -

Posted by lorich

Hey Mary...I don't have a clue about anything you asked...just wanted to say Good Luck and Best Wishes!

Re: Ok, so I need to buy a house -

Mary...yeay!!

They covered PMI...and you can find info on FHA/HUD loans here.

Since this was our first house, DH and I got an FHA mortgage. We put 3% down, so yes, we pay PMI. We didn't have the 20% so it's OK with us.

Right now seems like a great time to get a house...I wish you all the very best!!

Re: Ok, so I need to buy a house -

Thanks for the info!
The PMI thing scared the crapola out of me. i hate not knowing what I'm talking about.