Ask Experts Questions for FREE Help !
Ask
    citylover's Avatar
    citylover Posts: 79, Reputation: 1
    Junior Member
    		  
    #1

    Dec 29, 2008, 10:37 AM
    Mortgage questions first time home buyer
    Looking to get a mortgage for a bank owned foreclosure home an REO. I have an excellent credit score & able to put down a good down payment . Asking price is $388,000. How much should I try to offer? & How much of a down payment should I put... higher... medium... or lowest?

    Where can I serach current matket values in my neighborhood before going to the bank or do I need to do this before going to the bank?
    sandkicker's Avatar
    sandkicker Posts: 43, Reputation: 3
    Junior Member
    		  
    #2

    Jan 16, 2009, 09:50 AM

    It is always prudent to do your homework on the value of anything you want to buy.

    RE: Downpayment and mortages. I always tell my clients that if they are trying to buy a short sale or a REO that it is VITAL that they get "preapproved" by a mortgage company with credibility. In order to get "preapproved" you will have to:
    1) fill out a 1003 application
    2) Have your credit report checked by the lender
    3) Furnish ALL REQUIRED income, asset and job verification
    4) Have the lender issue a "Mortgage Commitment" that is only contingent on an appraisal, title and insurance proof.

    THEN (with a Pre-Approval attached to the offer) the selling bank will consider your offer.

    Some sleazeball lenders will just check credit and issue what WE call a "pre-qual" and call it a pre-approval. One of my erstwhile clients last year was lazy and did this, i.e. had a "pre-qual" issued as a "pre-approval" by a competator, and lost $23,000 in deposit funds when they found out two days before close that the really didn't qualify for the loan they applied for...

    RE: Down payments... anything less that 20% will cause you to have to pay PMI which will increase your monthly payments and may make a loan more difficult to get.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search


Check out some similar questions!

Approximate Mortgage Rate (first time buyer) [ 4 Answers ]

Hi, I have credit score between 690-705 (among 3 credit bureaus). My agent recommended me to a mortgage broker who pre-approved me for the loan. I am planning to put 10% down and she is offering me a 6% rate (while national average is around 5.3). I always thought a credit score of around 700...

First time home buyer [ 1 Answers ]

I have bad credit and never owen a home what are my chances?

First Time Home Buyer [ 4 Answers ]

Can you help me buy the house I live in from my parents. I moved into my Grandmothers home with my children after a divorce. My Grandmother has passed away since, and the house is in my Mother and my Aunts name and I pay them rent. I have visited this subject with them and they want to help me out,...

1st time buyer questions.. [ 5 Answers ]

I am just about to have my home inspected before the closing happens.. 1... I noticed that the hot water heater is made by a company that went out of business 10-15 years ago and the condition of the heaters effectiveness is in question... not to sound cheap, but do I have the right to have the...

First Time Home Buyer [ 1 Answers ]

I am looking into buying a home for the first time and I'm not really sure how the first time home buyers program works. If you have poor credit (550) are you still eligible for the first time home buyers program or is that score too low to get a mortgage anywhere??

View more questions Search