JamesMS wrote:Congrats on deciding to purchase a house. I believe that the FICO for best rate is about correct. When I purchased my house I think I went to 3 or 4 different places to check on my rate (as every lender may pull a different bureau and possibly use a different scoring model) and to put them against each other. That seemed to work out pretty well. I bought my house in 2010 and believe that I have a 4% rate.
If I had to do it again, I would do it the exact same way, which I plan on doing in another 2 years. There are things that you need to watch out for. Example, my buddy bought a house back in 2006 or 2007 and thought he was getting a fixed rate, turns out it was adjustable. He ended up getting screwed by the time he finally realized it. You will also have to think about homeowners insurance and depending on your financial situation, either going conventional or FHA.
Good luck and congrats.
Thanks! I think I want a fixed rate. I did ask when I applied just to make sure. Statistically those with adjustable rates end up better off, but my thinking is rates are starting to swing back up. I'd like a locked in rate while they are so low. I would guess with an adjustable rate mortgage at this point in time, the rate would have nowhere to go but up.
We don't think we will go the conventional route. We have some money invested we could
used for a down payment if necessary, but it's currently earning a higher rate than the interest would be. Since we are first-time homebuyers, I don't see the benefit in putting money down for a conventional loan. The rates on conventional loans might be slightly lower, but it still doesn't make up for the opportunity cost of pulling money out of investments.
MemberSince99 wrote:Everything you have to pay should be specified in the HUD as far as insurance and taxes. Maintenance, eh, I had my water heater which was about 10 years old go on me in January, replaced that, otherwise just little stuff really. Only big thing is furnace and A/C both about 14 years old now but high efficiency units. There will always be little stuff you'll find yourself doing but after the first 6 months to 9 months it should settle down.
I'm finding myself liking my house where at first I really didn't because all I could see was all the money that went out of my bank account for it and all that could go to hell on it. Well that's just life really. Once things settle down you will like it.
Just be careful if you get into an HOA situation - they can and some will make your life hell. I made sure to only buy where there is no HOA and I will never willingly join one. I don't need some fascist busy body telling me what color I can paint and what my landscaping has to be and how I can live my life like I'm living in the parent's basement, thanks very much, I'm long out of high school now.
It's so good to see you back, Member! Sounds like you're liking home ownership so far, then. We haven't gotten too deep in the paperwork yet; we've just gotten preapproved. We just looked inside a few houses last weekend for the first time to narrow down what we want. My wife really likes this older house that has had a lot of additions and remodeling done, but I'm more into a new house despite the fact that it has much less space. I'm not even remotely handy, so any maintenance and upkeep will probably have to be outsourced. There's no way to know for sure, I realize, but I just hope it will be manageable.