Comments on: Is It Better To Find Financing For A House Through A Bank Or Financing Person?

By: Gamergrl

Gamergrl — Tue, 10 Nov 2009 05:46:53 +0000

Definitely a financing person (i.e. many different mortgage brokers)
It will be harder for you because you are a first time home buyer, especially in the current market. If I were you I would probably try to get a FHA loan. Getting the loan will be harder still if you do not have a steady job (at least two years+) preferably 15 to 20% down payment and 680 plus fico score. Do not just let mortgage broker companies pull your credit; give them your scenario and see what they say they can do for you. In order for them to give you an accurate set of mortgage rates they will need the following information:
State/county you plan to be buying in
Amount that the house you want will cost
Property Type: (Single family, condo, town-home, mobile home and etc.)
Generally the middle score of your three credit scores
LTV: what will be the loan to value of the home
Documentation: Do you plan to disclose all your financial information and let them verify it(Full Doc) Do you plan to disclose your information and only let them verify only basic stuff like credit(Stated & Lite Doc) or do you plan to not disclose any information (No Doc, must have very credit min 720+)
Let the broker know that you are shopping around for the best rate. If the broker gets offended then he or she is not out for your best interests and you should RUN AWAY FAST.
Finally, be very wary if any broker offers you an pick-a-pay, option arm or cash flow arm. This loan is basically a sure way for your interest on your mortgage to rise faster then your payments thus you losing the house. The best type of loan would be a 30yr fixed mortgage with rates around 6.125 to 6.375 assuming you have a good fico (680+)
Source(s):
fha.mortgageloanplace.com
myfico.com
truecredit.com

By: Mark C

Mark C — Tue, 10 Nov 2009 05:37:53 +0000

A financing person is thorough the bank. Am I missing something?

By: temphous

temphous — Tue, 10 Nov 2009 05:20:18 +0000

A credit union is the cheapest right now, or a regional bank.
Mortgage brokers, or finacing people, get a commission on every loan; you end up paying that. The only advantage they have is that they might know a lender you never heard of. Use a broker as a last resort.

By: jbhonore

jbhonore — Tue, 10 Nov 2009 05:05:01 +0000

Find a good lender, they will find you the best loan. A bank only carries their loan products, where a lender may have access to hunderd of loan products. Also, I would recommend doing biweekly payments. Instead of paying say, $1000 on the 1st of every month, you pay $500 on the 1st and $500 on the 15th. Costs you the same, but it shaves the interest off. A typical 30 year mortgage will be paid of in 23 years just by doing biweekly payments. Check it out. Good luck.