Q&A: How (& where) to lock in an interest rate for new home purchase? (I have 800+ FICO)?

Question by CuriousOne: What’s the best way to find a mortgage after bankruptcy?
I claimed bankruptcy about 4 years ago and am not ready to purchase a home. What web sites or mortgage lenders should I target to obtain a loan? What should I expect as far as interest rates and fees?

Best answer:

Answer by KuteKaboose
If it has been 4 years since your bankrupcy and IF your credit score is now good you won’t be penalized and should have the interest rate that corresponds with your current credit score.

If your credit score is not great than consult a mortgage broker or banker and ask for free advice to help bring your credit score up. Many times within 6 months to a year you can have your credit score back up.

DO NOT go to online lenders. Go to local banks and mortgage brokers. Ask around from friends and family for referrals. Local lenders have great first time home buyers programs and other programs that are fabulous.

I am a Realtor and have a ton of bad experiences with clients who have went with online brokers. And don’t try to purchase a home without a Realtor. They offer a lot of knowledge and help. They are a free service to you the buyer.

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Question by schlum l: Do you need to be upside down to some degree to qualify for a freddie harp 2 loan?
what percentage would you need to be to qualify?

Best answer:

Answer by Bob
You do not need to be at all upside down to qualify for a Freddie HARP 2 loan. If your LTV is 80% or less, price you may qualify for conventional financing or HARP, help and you should compare rates and terms for to see which is best for your situation. Most HARP loans will not require an appraisal, case so your costs can be lower and your processing time quicker.
The HARP program has no minimum or maximum LTV requirements, but many lenders have their own additional requirements. Many lenders are choosing to limit LTV to 105%, and the lender I work for has a limit of 150%. If your lender can’t help you should shop around for one who will.

http://www.fhfa.gov/webfiles/22723/HARP%20release%20102411QandA%20Final.pdf

What do you think? Answer below!
Question by inquisitor: How (& where) to lock in an interest rate for new home purchase? (I have 800+ FICO)?
I have AAAA credit and am prequalified for an FHA loan already – but the mortgage broker says the rate is not locked in (until I choose a property/deal).

Who has he best deals and how can I lock in a rate before I choose a house (it may take a month for me to find a house)?

Best answer:

Answer by lepr0kan
Many lenders requires a property before you can lock. Actually all of the ones I work with except for Wells Fargo Wholesale requires a property, cheap so see if your broker works with them. Remember that if you are trying for a long term lock of 60-90 days your rate is not going to be that great (the longer the lock the higher the interest rate). I suggest having a broker lock it in currently with one lender at 90 days (that’s usually the longest lock) and then if the market has improved when you are ready to purchase you may be able to get a better rate and the broker can then lock at a different lender. THis is the great thing about using a broker and not a bank.

Know better? Leave your own answer in the comments!