Hi Guys, I am trying to buy a new construction home in a community. I know there are many home owners here. Especially lots of msft people are homeowners. So asking here before I try reddit/quora and everywhere else.
This is going to be my first home so don't have much idea.
I have few newbie questions which I would be really happy if you can give unbiased responses from your own/friends experience.
1. For the new construction, should I go with the broker who sit in the construction area or with my own broker, assuming that the homes disappear within an hour of listing.
For eg, more than 25 homes are already sold but if I put the addresses on redfin, only 8 shows as pending. Others don't even show up in redfin. Does that mean that they are sold even before showing up in mls listing (broker was the one who was selling?)
2. There was a loan officer who was there at the property. Based on my file and my info, he told my interest rate will be at around 4% for 30 yrs fixed conventional loan. At max 4.1-4.2 but not more than that. I will be putting down 15-20% and home price would be around 850-900k.
Closing costs would be approx 10k extra (approx 6k would be payments towards first 6 months of taxes + home hazard insurance for first 15 months). So I will be paying around 4k for miscellaneous fees.
So my question is should I go with him or should I search for other lenders? Will I be at a loss and preferably lose the home if I try with another one because the market is hot and property disappears within one hour of listing(this is verified by me personally)
My profile - 15-20% down with around 650-670 credit score
3. Lets say I go with the preferred lender. Can I refinance right after I move in if I get a better interest rate? What would be pro and cons for this?
4. Do you guys have any recommendation for me? I am completely new to this so don't have much idea.
Few stuffs about me (incase you need these for any recommendations):
On h1b. Don't have i140. Green card process hasn't started. Indian.
Started working last year.
25 years old. Not married yet but will be marrying in the next 12 months. Spouse won't work for the initial 2 years at least but definitely not spendthrift so I am hoping mortgage payments won't make my life hell.
Schools rating for the home is 8,9 and 10
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Instead of going after that house, I instead went for a new townhome near bothell for 600k. Have been preapproved, placed offer and accepted and right now going through the loan process. Thanks for all the suggestions everyone.
If you are getting ~4% on a jumbo loan with <20% down and 650-670 credit score, that isn't bad, however.
You can get pre-approved with multiple lenders.
Would need to see all the details to know if fees are reasonable, but there are lots of things that you will need to pay up front. Things that you need to watch out for are too many "fees" - application fee, origination fee, underwriting fee, processing fee - these are all the things the lender is profiting on, as well as any rebate they get from the lender. They deserve to make money, just not a crazy amount.
Do you have any recommendations for lenders?
The real estate agent i was working with was quite good and they are partnered with msft i guess. We get 10% gift too on the commissions they get. But I am not sure whether to approach this with her or the one who is sitting at the property
What was one of the contributors to the last housing crash? People buying more house than they can afford, using ARMs to get initial payments down, then losing their homes when the payments adjusted up to something they can't afford.
Just because rates haven't gone up recently doesn't mean they can't or won't. Current rates are crazy low - they have already gone up 0.5 in the last year. If you take and ARM today, you have to assume it will go up. How much and when are the only questions.