Mortgage for a house

Nvidia
djoker1

Go to company page Nvidia

djoker1
Oct 31, 2017 7 Comments

Hi guys,

I am planning to buy a house and have toured one house on my own without any buying agent as yet. I have been told that it is important to have pre-aproved mortgage available. I was wondering what are the factors that people bought house have considered for mortgage? I see well known names like wells Fargo and chase bank but I think their rates are high while there are some lending institutions who are offering low rates but I have never heard of them so don't know if I should trust them.

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TOP 7 Comments
  • eBay
    naef41

    Go to company page eBay

    naef41
    Take it from someone who’s gone through this process 7 times and counting....

    1. As a rule of thumb you want 20% down for a primary residence, 25% for multifamily (2-4 units). Not sure if 25% still applies if you plan on using one of these units as primary residence.
    2. If you do not have the 20%, you can make up the difference with a FHA loan so you need only 3.5%. But in general your options are cheaper and greater the more cash you have. You’ll be paying out the wazoo in PMI (~1% of loan per year) if your LTV (loan to value) isn’t more than 22%.
    3. Zillow’s mortgage lender application process is *amazing.* Input your budget and money and income, and they’ll send the information to lenders as well as show you a list of lenders. I’ve gotten all my mortgages at best available rate this way. Be sure and select a lender with a crazy high rating like 4.95 stars + 1000 ratings even if it means sacrificing a little interest, because the paperwork you’ll be doing is insane & arbitrary and you want your lender to stay on top of that.
    4. They’ll often want proof of a nice cushy amount on top of your down payment in case you lose your job. Retirement funds or RSUs can help with that, so have proof of these ready to go.
    5. When they want some paperwork drop everything and deliver these same-day. Trust me on this, don’t be lazy in paperwork.

    Don’t be scared, it’s an awesome process. Your buyer agent will also help you through this.
    Oct 31, 2017 0
  • Amazon / Eng
    mUqi08

    Go to company page Amazon Eng

    PRE
    Amazon
    mUqi08
    Do not move money around right now, you will have to write an explanation on every single one of them and it is inconvenient, keep the money where they are you can combine the total at closing.
    Oct 31, 2017 0
  • Get a buyers agent now

    Wells Fargo has been fantastic for me (about to close on my 3rd mortgage through them)

    As said above, get your paperwork down as soon as it is requested, someone else is going to slow shit down, don’t add to it.

    If you can swing it, go for a 15 year mortgage and pay a point to reduce your interest rate, future you will thank you ( this assumes you will be in the house long term)

    Have a paper trail for all large sums of money that has been moved around

    Once the bank has reviewed your finances, do not move money around until after closing

    Reveal all assets and liabilities, they will find it and will only slow you down if you don’t
    Oct 31, 2017 0
  • Nvidia
    djoker1

    Go to company page Nvidia

    djoker1
    OP
    Thank you so much for the information. This will help a lot :)
    Oct 31, 2017 1
    • You can get a pre approval from any bank. The rates don't really matter at this stage. This is to make the seller comfortable to the fact that you will get a mortgage. Once they accept, get quotes from many banks credit unions etc and go with a reliable bank with a good rate. Talk to the lender you prefer and they may be able to match the rate you have from someone else. Plan to few hours during that day. The rates vary daily, your agent should know which days are to be avoided. E.g. the day after a long weekend tends to have higher rates. Good luck
      Oct 31, 2017
  • Amazon / Eng
    mUqi08

    Go to company page Amazon Eng

    PRE
    Amazon
    mUqi08
    Any local physical bank and credit union can do it, just make sure they are fast in closing or you may lose the deal. Don't worry about interest rate, if it takes too long of a process you may lose it.

    You can always refinance later.
    Oct 31, 2017 1
    • A little loose on the refi advice. You would need to do it quickly, otherwise you’re just resetting the interest to principal ratio and the bank is making more $$$ off of you
      Oct 31, 2017