Preparing to apply for first mortgage...

[randomthoughts1875]

What kind of advice can you offer for a first time homebuyer? I'd like to have all of my ducks in a row before starting the process. I'm really looking forward to your advice!

[moonmagick]

Its definitely important to keep in mind that you are going to be paying out all kinds of fees in the beginning, or in the least have to have the money when you close. For things like home inspections, appraisals, I even had to have a pest inspection before my mortgage company would lend. It seemed like there were a lot of things I just wasn't expecting.

[Calypso]

When I was thinking about buying a home, my banker told me the smartest thing to do was get pre-approved for a mortgage. That way you know exactly how much you have to spend and you can look with confidence at houses in your price range.

Moon's advice is good, too. Be ready to pay a lot of fees and other unexpected expenses on closing day. Sometimes your realtor will warn you about these, but other times s/he forgets and it's all a nasty surprise.

[SageMother]

I would avoid anything that isn't a fixed rate for 30 years. These creative mortgages like the interest only and no down payment types usually have you scrambling to get a new mortgage in 3 to 5 years or your payment goes up sky high and you get mortgaged right into foreclosure.

[randomthoughts1875]

Thank you all for the great advice! We are trying to save up for all of those unexpected expenses involved in closing...what would you all recommend as a safe amount to have available? I live in a rural town, I don't know if that would affect the amount?

[katharina]

Quote:

Originally Posted by randomthoughts1875

Thank you all for the great advice! We are trying to save up for all of those unexpected expenses involved in closing...what would you all recommend as a safe amount to have available? I live in a rural town, I don't know if that would affect the amount?

The amount for closing is impossible to suggest because a mortage for a $300k home is worlds different from a mortgage for an $80k home. If you mean just extra things, that would depend on whether the inspection finds things that need to be fixed (for us, it was luckily just a hand rail for the main stairs) and if you need a termite treatment, etc.

[Melizzy]

Good idea. Have you or are you getting pre-approved?

[nangel78]

I went through all of this. My husband and I were preapproved and then worked from there.

[randomthoughts1875]

Quote:

Originally Posted by Melizzy

Good idea. Have you or are you getting pre-approved?

We are going to be applying for preapproval next month. I just have one of those personalities that needs to know as much info beforehand as possible! lol Thank you all for the great advice...keep it coming! In response to Kathrina's post, homes in our area typically range from $75,000 to $150,000...it's a small, rural farming area. Is there a general percentage that is recommended as a guideline for closing costs?