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Looking to get a good mortgage...would I qualify?


booger69
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I am just getting a feel for this home loan stuff. It seems everyone I ask has different answers. So here it goes:

I gross about $47K a year (salaried) same job for 8 years but will be changing jobs in May. I teach, so I will be in the same field, just a different school.

1 Negative on my reports: $53 collection (3 years old) that I can probably pay to delete.

Scores of around 720 (Fako).

Car paid off, student loans of about $350, 1 CC with $100 balance and $1000 limit. No other financial obligations other than standard rent & utilities.

I would like to get a 0 down loan for about $110K.

I only have about $5000-6000 for the closing/move in expenses

Some people I have talked to say I should qualify for a larger loan, but I don't really want a LARGE debt over my head (& the large payments!). I really don't need that large of a home either. Many homes I have looked at fit within the $110K limit and are suitable for my needs.

What loan options would work best? Is it better to work with a broker?

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You have so many options available to you, and if you don't want a larger/more expensive home then you shouldn't have to buy one.

You could go FHA, but there are better ways to finance. My recommendation would be find a good 80/20 combo loan. You can get quotes and opinions from more than one place, I'd talk to at least the bank you bank with and a mortgage broker. Here's a good thread that discusses the differences between each type of mortgage lender.

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You have so many options available to you, and if you don't want a larger/more expensive home then you shouldn't have to buy one.

You could go FHA, but there are better ways to finance. My recommendation would be find a good 80/20 combo loan. You can get quotes and opinions from more than one place, I'd talk to at least the bank you bank with and a mortgage broker. Here's a good thread that discusses the differences between each type of mortgage lender.

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I would suggest that you use your funds for the down payment, so that you are borrowing 95% or less of the sales price of the home. That will lower your interest rate (less risk to the lender if you are not borrowing 100%)and payments. Then, get the seller to pay the closing closts.

Depending on the lender that you work with, you can negotiate a sales concession of between 3 and 6% of the sales price towards paying closing costs. Depending on what part of Georgia will make a bit of a difference, but generally even in Atlanta, your closing costs should not be more than 6%.

The difference in working with a broker vs a lender (and I am biased towards brokers) is that with a lender, they have certain programs that they can work with, so they may try to fit your situation into a program that they have. With a broker, they take your situation, and find the lender and program that fits.

In most businesses, you always get a better price the higher up in the distribution you go. IN the mortgage business, you get a better rate the larger the volume of business you do, so at retail with Ameriquest you may pay higher than going through a broker that gets their loan placed with the wholesale division. Not logical, but reality. As a broker, I can get a better deal working with a wholesaler, that offers a Countrywide program, and sells the loan to them the day after closing/funding, than I can dealing directly with Countrywide.

Charles

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I would suggest that you use your funds for the down payment, so that you are borrowing 95% or less of the sales price of the home. That will lower your interest rate (less risk to the lender if you are not borrowing 100%)and payments. Then, get the seller to pay the closing closts.

Depending on the lender that you work with, you can negotiate a sales concession of between 3 and 6% of the sales price towards paying closing costs. Depending on what part of Georgia will make a bit of a difference, but generally even in Atlanta, your closing costs should not be more than 6%.

The difference in working with a broker vs a lender (and I am biased towards brokers) is that with a lender, they have certain programs that they can work with, so they may try to fit your situation into a program that they have. With a broker, they take your situation, and find the lender and program that fits.

In most businesses, you always get a better price the higher up in the distribution you go. IN the mortgage business, you get a better rate the larger the volume of business you do, so at retail with Ameriquest you may pay higher than going through a broker that gets their loan placed with the wholesale division. Not logical, but reality. As a broker, I can get a better deal working with a wholesaler, that offers a Countrywide program, and sells the loan to them the day after closing/funding, than I can dealing directly with Countrywide.

Charles

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