Portal Forum General General Discussion Home Ownership Reply To: Home Ownership

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@dxmnkd316 wrote:

Shop around for loans. It won’t hurt your credit score if multiple lenders pull you credit in a short amount of time. I knew I was going to get the best rates and just compared online rates posted. I think I ended up 1/8th below that day’s published rate.

Agree to shop around with multiple lenders. Keep in mind though that the online rates are just one part to consider. You really need to get a detailed Good Faith Estimate to compare apples to apples.

@dxmnkd316 wrote:

Amazingly, Wells Fargo had the best rates around for me. Financing with then also just about guarantees your mortgage will always be with them. Smaller lenders buy and sell loans all the time. I’ve heard of people paying three or more different lenders in the first year of their mortgage. Too much hassle for me. Also, don’t let personal opinions of banks get in the way of getting the best deal. Wells Fargo may harass you in their branches, but going elsewhere for that reason alone could cost you an 1/8th to 1/4 point.

Not a huge fan of Wells Fargo so glad you had good luck. In my time as a realtor almost every bad loan deal I’ve dealt with was Wells Fargo related

@dxmnkd316 wrote:

Know and understand the HUD-1. It’s complicated at first glance but fairly straightforward once you understand it.

One thing that will help is that in August this year there is a completely new process that lenders and title companies will have to follow with regards to educating consumers about their Good Faith Estimate and HUD-1. From what I’ve seen it will be much more straight forward to tell people what the costs are that they are paying for.

@dxmnkd316 wrote:

When it comes to earnest money, be aggressive If you know you want the house, are pre-approved , and know you won’t back out.

In my experience earnest money isn’t all that important to most sellers unless they are a bank dealing with an investor. Every buyer has to be pre-approved to submit an offer and really the seller is more concerned about the net sales price and other terms like closing date. Just go with 1% for earnest money and that should be fine and actually many sellers might take less since most listing agents don’t push this point too hard.

@dxmnkd316 wrote:

Also, on a more personal note. Use mom. She knows what she’s talking about when it comes to house hunting. She was instrumental in helping me find out what I liked, what I didn’t, was able to help schedule visits, and helped me look for common housing pitfalls.

In most cases having a trusted adviser (like a parent) along to help with the process is a good thing. I have seen a couple cases where the parents really didn’t help the process.