Question by Johnny: Does anyone know of a Bank or someone that give really low mortgage rates for first time home buyers?
Looking to buy a house in Virgina and am shopping around for low mortgage rates. Anyone know of any low rates?
Best answer:
Answer by Amy J
Fannie Mae has a program for first time buyers, buy order check with them. We used it here in OK but I couldn’t tell you the rates.
http://www.fanniemae.com/index.jhtml
Give your answer to this question below!
Check with the Federal Housing Administration (FHA) of your state first. They can help first-time buyers or those with less than perfect credit get a house at the lowest rates they can. Don’t go to a bank first, there are a lot of predatory lenders out there that will screw you. FHA does have loan limits, but they are adjusted to where you live.
Visit http://www.fha.gov/, and poke around.
For Virginia specific info, http://www.hud.gov/local/index.cfm?state=va
Please check this out first!
All banks just about offer the same products and loan programs with the different qualifications in each of their programs.
No one can tell you the best rate for anyone individual. If all you are interested in is the best rate possible you can go to your local paper, they are publiched each day by participating banks.
Your interest rate is based on your credit score and how well you have paid your consumer debt over time.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, preferrably with a mortgage broker, which you can find one in your local telephone book.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will then run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K plan from your place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need he will be able to tell you the loan programs you are qualified for, the approximate interest rate and monthly payments
He can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
I this has been of some use to you, good luck
“FIGHT ON”
You need to speak with a loan consultant. It doesn’t matter if you’re a first-time buyer or not…rates depend on the loan amount compared to the purchase price (LTV,) your credit score and the loan amount.
FYI: If you have low credit, you will probably have to document a 12 month rental history with on-time payments…
First time home buyer loans are not designed to offer borrowers the lowest interest rate. FTHB loans are more designed to give some flexibility in the underwriting guidelines and assistance with closing costs, ie lender paid closing costs. FYI – the more you take in lender paid closing costs the higher your rate will be.
The following site has a free comprehensive mortgage quote feature that is awesome. You can see the different rates for the different types of mortgages and it is very easy to use. Good luck
I just posted something similar to what you’re talking about on my blog.
A great read with a great article about fha loans.