The reason I’m putting this in weddings is that I’m here most of the time and figure there are people here in the same situation. Thanks for your help!!
I know a fixed rate mortgage is better than a variable (9 times out of 10).
I have looked at some of the calculators online and am having trouble with the tax and insurance rates, as I will be a first time buyer. Any ideas where I can find that information?
Any general suggestions? We are working on paying off our credit cards, car, and student loans.. Saving as much as we can for a down payment..
just under a year ago, my credit score was in the mid to upper 600′s (depending on the credit company). I will be checking my credit again once it’s been a full year.
Also, just as a side note, I am not looking to e-mail someone to get approved for a loan. I am nowhere near that point yet, but thank you for any advice you can give.
1. Know what the maximum monthly payment you can afford is – for tax, house and insurance.
2. Based on this amount you can fool around with the calculators to see what the total cost of a home you can afford would be.
Your taxes and insurance rates will be based on the cost and worth of the house, sq footage, size of lot, etc., not on the fact that you are a first time buyer.
You definitely want a fixed rate mortgage. Don’t even bother with the other, its a nightmare.
When you get your loan, amortize your property tax into your monthly payments so you don’t have to worry about saving that money each year and paying it out of pocket. You can do this with your insurance as well..in fact on most loans this is required for insurance to be part of the payment. You can choose your insurance agency, but you pay a year in advance through your escrow acct.
For an idea of what the taxes will be, get on http://www.rmls.com and do some searching for houses in your area. They list the property tax right on there.
Most FHA loans require a 3% downpayment….some FHA and other loans don’t require any downpayment.
Here is our scenario, we just bought in October:
1500 sq foot house, 3 br, 2 bath, 1/4 acre lot, house built in 1977…we paid $199,500 for it. 6.5% APR
We paid $5280 as a down payment and another $2520 for the years property tax. (In Oregon prop tax is due in November..since we bought in October we had to pay the whole year up front. Dependign on when you buy, you will pay the following months in tax up front)
The seller paid up to 6% of the closing costs up front…so they paid like $6,000 or something, cant remember, toward the cost of the house, our first year of insurance, a home warranty, closing costs, etc.
After all was said and done, our final loan amount was $195,000. Our payment for the house alone is $1298, add insurance and property tax into that each month and our payment total is $1617 a month.
Don’t freak on that amount…we opted to give less of a down payment so we could buy new furniture, etc. for the house… plus we can well afford it. Just make sure you don’t get into something you can’t afford…its not worth it.
you need to have a minimum of 3 months of salary in a liquid savings account; make a down payment of at least 20 percent; pay off your debt….in today’s market, you HAVE to get yourself a fixed rate mortgage; property tax and insurance rates depend on where you live; if you don’t have a FICO score in the upper 700′s minimum, you won’t get a loan right now
Your easiest option is to go to a bank and try to get pre-qualified. It is free and they will tell you everything you need to know. Just call and make an appointment with their Mortgage Rep.
The county and city have a rate per thousand for property tax out in the county will save you money.On home owners ins. check with more than one ins. company.You need to get a home inspector to look at the home that you buying before closeing
Try this site. KeepandShare’s custom search engine. It gives you only the best sites, so you don’t have to go through and dig out the good home owner insurance sites.
http://www.keepandshare.com/htm/insurance/home/home_owner_insurance_guide.php
It really depends. If you can afford it, you can get an ARM (Adjustable Rate Mortgage), with a low initial interest rate. However, most of the time, they require a higher down payment. That being said, there are different types of mortgages that you can get, where you would only need 5% down, or nothing at all.
If you are looking at a new build, you generally only need about 10% down, however, if you are looking at pre-existing homes, the general thought is at least 20% down.
I’d go talk to the bank where you plan on getting a mortgage, and see what they have to say. Also I’d suggest getting a few books – "Mortgages for Dummies", "Home Buying for Dummies", "The Complete Idiot’s Guide to Buying and Selling a Home", and "The Complete Idiot’s Guide to Mortgages"
We read all the books – and more, as well as went to a home buying seminar that was put on by our real estate agent, and the bank.
Good luck!!!