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Discussion Starter #1
I'm looking for a home, but am a first time buyer. Been busy as hell researching books after books after books.

But I have one question from all you experienced home buyers, has anyone ever tried applying for their home loan mortgage online?

Bankrate.com has really really low interest rate quotes, like 4.50 for a 7/1 ARM!!!! Is this bullshit? Should I try using them?

What are risks I should be aware of to protect myself, or at least know if this is a good way to go or not.

My local broker quoted me 6.25 for a 7/1 ARM. But it feels really REAL with him, like I can get it if I went with him. With online though, I just feel like I'm waiting for them to come out and say, BUT YOU NEED A 50% DOWN PAYMENT or something...

:beer
 

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Iv never gone through buying a house or anything that i had to finance, but if i had to i think id rather do it with something i know i can trust. (not saying online is a scam or anything) but we all know some of these internet places are tricky and can be hard to get a hold of when times get rough....but if you feel absoulutely comfortable with doing it online do it. i might suggest contacting the better business bureau or somehthign and get some background info on wherever you end up getting your loan from...

just my .02
 

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id dint go online with my home oan and i got something like 5.5% and i went on a new payment plan, twice a month andnow i am at 4.5% interest. sorry to get off track i dont know anybody that has done this online. but that interest is way to high.
 

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Ride it, don't eat it...
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On a new home purchase, I'd be a little nervous doing it online. Refi, that's a whole different story. But when you're bidding on a property you like(and with many other that might like it too,) you better make sure that all your financing is in place...Done, ready to purchase, documents signed, only waiting for an address to put on your loan paperwork. If not, you stand a good chance of losing to another buyer that has their sh*t together.

When I bought my house, I had everything in order, and it made the whole process easy. So easy that after I FedEx'd the deposit to the escrow company, I hopped on a plane and went diving in Australia for a couple weeks. When I got home, packed my stuff, moved in...

Your local mortgage broker should get you a better deal than the one you posted. If he's any good at all, unless you have a lot of restrictions due to down payment, credit score issues, or whatever, he should hook you up w/ a cheaper loan.

Make sure to check into your local area for city, county or other offers that lenders won't tell you about(or know about due to very specific programs for specific neighborhoods) for first time buyers programs. There are limitations to these city sponsored offers, but worth checking into.
 

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pavement tester....
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NO DO NOT USE PLACES LIKE>>>>>>>

lendingtree.com and others!

What they do is take your information and shotgun it out to a whole lot of lending institutions. So by the end of the day you have had your credit report pulled like 30 times and you are screwed. There was a client from our office who was preapproved through our in house lender for a 900K home. They decided to shop around on the internet. Turns out their CR was pulled like 27 times, they no longer qualified for the loan. Had to jump through some serious hoops to make it happen.

I would say that you should first find a good buyers agent. I helped Shadow One get one down there in SC. You want an agent that preferrably has a good amount of experience, and works for a decent sized company that has a good in house lender. The good thing about buyers agents is that they are basically working for free for you until you buy. However they can do the market analysis, find what places the inventory is moving faster than others, all to help you find a decent home (with good resale) and help you put in a reasonable offer. They are working for your best interest. Remember, the guys whos sign is in the front yard is representing the sellers best interest, not yours.

With most conventional loans you can get sub 6% for 30yr fixed. However, are you going to be in the house for 30 years? That is something you might want to look at. There are lots of ARM, some that change yearly or some that change every 3 or 7 years. I mean, if you know you are going to move in 5 years why not go for the lower rate ARM and save money that way. The thing about conventional loans is you will have to put down anywhere from 10% to 20%. If you cant do that or arent golden on your credit you can always go for an FHA loan. Usually require 3% down and you still get a good rate.

If you are looking at new construction try looking into a buydown policy. These are incentives that builders usually offer to customers where (lets say its a 3-2-1 buydown) they buydown your interest rate for the first 3 years. So if you are financed at 6%, then the first year you pay 3%, then 4% the next, and 5% the 3rd year. The 4th year you go back to your 6% mortgage rate. Not too shabby...

I'm no expert on this, but going into the biggest purchase of your life try to be as informed as possible. The last thing you want to do is get screwed.;)
 

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Discussion Starter #6
KneeDragger77 said:
NO DO NOT USE PLACES LIKE>>>>>>>

lendingtree.com and others!

What they do is take your information and shotgun it out to a whole lot of lending institutions. So by the end of the day you have had your credit report pulled like 30 times and you are screwed. There was a client from our office who was preapproved through our in house lender for a 900K home. They decided to shop around on the internet. Turns out their CR was pulled like 27 times, they no longer qualified for the loan. Had to jump through some serious hoops to make it happen.

I would say that you should first find a good buyers agent. I helped Shadow One get one down there in SC. You want an agent that preferrably has a good amount of experience, and works for a decent sized company that has a good in house lender. The good thing about buyers agents is that they are basically working for free for you until you buy. However they can do the market analysis, find what places the inventory is moving faster than others, all to help you find a decent home (with good resale) and help you put in a reasonable offer. They are working for your best interest. Remember, the guys whos sign is in the front yard is representing the sellers best interest, not yours.

With most conventional loans you can get sub 6% for 30yr fixed. However, are you going to be in the house for 30 years? That is something you might want to look at. There are lots of ARM, some that change yearly or some that change every 3 or 7 years. I mean, if you know you are going to move in 5 years why not go for the lower rate ARM and save money that way. The thing about conventional loans is you will have to put down anywhere from 10% to 20%. If you cant do that or arent golden on your credit you can always go for an FHA loan. Usually require 3% down and you still get a good rate.

If you are looking at new construction try looking into a buydown policy. These are incentives that builders usually offer to customers where (lets say its a 3-2-1 buydown) they buydown your interest rate for the first 3 years. So if you are financed at 6%, then the first year you pay 3%, then 4% the next, and 5% the 3rd year. The 4th year you go back to your 6% mortgage rate. Not too shabby...

I'm no expert on this, but going into the biggest purchase of your life try to be as informed as possible. The last thing you want to do is get screwed.;)
thanks for the tip KD, yeah, your right, i just learned from another src that refinance is different story to do online then purchase. so that solves an easy problem, ill go with my local broker.

and man, 30 credit checks? thats insane... im glad i didnt move too fast and try to apply for shit online.

im probably gonna go with 5/1 arm, interest only, try to sell in 5 years, plus or minus 1, HOPEFULLY.
 
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