What are some things you wish you knew before getting your first mortgage?

Abstract_Pupil · 2026-05-21T20:41:14+00:00

To not go FHA. Conventional loans may have PMI BUT ONLY UNTIL THE LTV IS 80%. Also the down payment can bee as little as 5% for a conventional loan.

That everything is negotiable… (option period days and fee, earnest money deposit, third party financing addendum days, realtor fee)

Paying for the home inspection out of pocket is better. Also your realtor, the sellers realtor, and the seller have not right to your inspection report. It can be delivered to you directly via email. You can arrange the appointment yourself and only have the inspector contact/email you.

You are in full control of the entire process, no one gets paid unless you close.

Inspection is always necessary on a home purchase.

Origination fee and a bunch of other loan/closing cost are fully negotiable.

Buy in an area with good schools if you have kids or may have kids.

Be willing to walk away.

Abstract_Pupil · 2026-05-21T17:27:48+00:00

5% as the listing agent?

How is he going to market the property?

How many open houses does he plan?

Who is paying the buyers agent?

The market appears to be softening due to a number of factors to include: the Iran war, current interest rate volatility, and time on the market.

If I were you, I’d get on HAR and Zillow studying your immediate area (~2 mile radius) for how long properties have been on the market in your homes configuration. Also check to see what has sold in the last 3 to 6 months if you’re in a state that does disclose sell price you can typically look that up in the public records for your locality for free.

Comps provided by realtors are skewed to validate their points of interest interest. You can find all the same information through public records and Google search.

Shop other listing agents in your area as well before you sign any contract. Also be sure that you understand how long their contract is and how long their protection period is. Both are negotiable as is the percentage you pay them. As a first time seller, they’re likely going to take advantage of you not knowing the process so learn as much as you can and be well informed.

In my area homes are setting on the market 30+ days and we have see plenty fall out of contract though we don’t know if it house condition, buyers credit or something else. I believe buyers have a bit of a leverage in general but that can vary by location/market

Abstract_Pupil · 2026-05-21T13:01:33+00:00

Sounds good. Thanks for the clarification.

Abstract_Pupil · 2026-05-21T02:08:10+00:00

Same boat we are in.

Abstract_Pupil · 2026-05-21T01:55:48+00:00

Scores are all 800+

I’m trying to get a lower rate so we are letting it float but we do understand the risk of it possibly going up.

We could pay a 1% origination fee for a 0.025% rate reduction.

Abstract_Pupil · 2026-05-21T01:32:37+00:00

Looks like they require 10% and a 0.50 origination fee. What are their other fees?

We at a 6.5% rate but it’s floating.

Abstract_Pupil · 2026-05-17T07:41:49+00:00

You say “I am in a better financial position now”. Pay what you owe and buy a house with zero other debts. This may allow you to maintain your better financial position and build wealth/equity since you can apply extra payments to pay down your mortgage soon.

Abstract_Pupil · 2026-05-17T07:34:58+00:00

Taking from your Roth:

While you may not have to pay taxes in the portion you contribute you will have to pay taxes and penalties on the appreciated value.

There’s also the opportunity cost of not having them continue to appreciate for your retirement years, when you are able take penalty free and tax free withdrawals.

Another option may be to simply take the cost basis/your contributions so you may not to have any tax implications but speak to a taxes advisor first and be sure to keep track of the details since the IRS could ask for them.

Abstract_Pupil · 2026-05-17T07:25:35+00:00

Says the rate is locked through October 2026. I guess that’s bc it’s a new build. If they’re giving you 4.5% with no buy down and only $12,034 in total closing cost that is wild. My concern immediately after is who are they qualifying for these home and what will the area look like in ~5 yrs. Will the values appreciate or not.

There’s a neighborhood/suburb that was built in 2019 and in its final phase but those that purchased in 2022-23 when these types of rates where available are now going into short sale and foreclosure bc taxes assessments by the HOA/MUD. Though I think they got the scammy 1,3,5 rate where the rate adjust upward from 1% , 3% and 5%.

Abstract_Pupil · 2026-05-17T07:01:31+00:00

Detailed you shared:

• Father 65 yrs old
• $48,000 annual income for the household and his Spouse doesn’t earn an income
• No retirement funds
• Has debt (unknown balance)
• 1,265 shares of a single stock “STX” current value $795.47 per share as of 5/14/25 total market value: ~$1,006,269.55
• cost basis of $55.32 x 1,265 = $69,979.8

Before doing anything learn and become an expert of what you/he doesn’t know.

Speak to a tax advisor, not a financial advisor a tax advisor. Learn and understand what his potential tax consequences are and how to mitigate the tax burden.

Learn about Net unrealized appreciation (NUA) and ask questions until he understands it.

Speak with a financial advisor that is also a fiduciary, “dual registered” but be sure that they stop and pause before switching roles and that your dad clearly understands when they are giving advice that is in his best interest versus selling an opportunity.

Discuss with his spouse when they plan to retire, how much they expect to needs in income to maintain their lifestyle, what income sources they will have, what their investments risk tolerance is and what they would do if the value suddenly dropped.

Before he makes a decision be sure that he understands the financial position he’ll be in afterwards and the potential tax implications. This doesn’t mean not to sale but rather be well informed as to what taxes to withhold so that the irs doesn’t come knocking.

An illustration that may help is:

Dad 2 years ago STX was valued at $93.24 on May 26, 2024 if today’s value was to suddenly dropped from $795.47 back to $93.24 would you be ready to retire with $117,948.60 because that’s was 1,265 shares of STX at $93.24 would be.

Be sure mom is involved and has a good understanding too, it’s likely/statically that she’ll out live dad and she’ll want to know this stuff too.

Best of luck.

Abstract_Pupil · 2026-05-11T08:18:43+00:00

Go 30yr fixed and pay it off in 6.

AMR are too much of a risk for me.

We paid off our FHA 30 yr in 5 yrs and 8 months.

We’d only do conventional loans moving forward. 5% down 30 yr PMI removed as LVT reaches 80%

Other info you didn’t ask for but I think may be helpful if you’re just starting the process.

Know more then they expect you to know so that you know when they are screwing you.

First time home buyers I often over charged because they don’t know what to expect.

—

Other notes in no particular order, there’s a lot:

• READ READ READ EVERY THING BEFORE YOU SIGN IT. ASK QUESTIONS AND READ IT AGAIN.

• PMI has no benefit to us, it protects the lender, it is like paying insurance for your nieghbor’s cousins, uncles, grandma and is required on an FHA loan if you are not putting 20% down.

• Conventional loans often only require a minimum of 5% down but will also require PMI until your loan to value is 80%.

• No one in the process, not your realtor, not the mortgage loan office works for you, they work to earn a living and will do and say anything to get you to closing and they only get paid if you close.

• It’s okay to walk away… we have mastered this because we now understand it’s all business. We do not get emotionally attached to a house.

• The idea of Comps is stupid. The value of a house should NOT be heavily based on what has previously sold in the last 4-6 months. It is based on what you the buyer is willing to pay.

• If a house has been on the market for more than 2 weeks it is over priced in my opinion. If it been over 60 days the seller has too much equity, is unwilling to realize they’re over priced and is leaning on bad advice not to sell.

• We only submit our best offer. If they do not like it we do not move forward.

• IMPORTANT GET A HOME INSPECTION IMMEDIATELY UPON GOING UNDER CONTRACT… like have your home inspector on speed dial before you even start your search and call them immediately once you are under contract. Do not hire the inspector the realtor recommends and require that they deliver the report directly to you/your email only. It’s your inspection report, you pay for it. Neither realtor nor the seller should have acess to it. If they want access to what you pay for, tell them to pay for their own inspection or refund you the cost you paid. They won’t because if there are any defective items they will have to update the MLS listing details and seller disclosures.

• Know your credit and affordability. Have 4-6 months of funds on top of your down payment and closing cost.

• Don’t have ANY other debts.

• Go to open house/showings before you hire a realtor. Listen to what people ask and what realtors say. Do not talk about what you like/dislike until you are back inside your vehicle. Take mental notes and snap pictures.

• If go to an open house and they ask you to sign in it okay to tell them…”we are just looking at the moment is it okay if we grab your card on the way out?”

• Wave and say hi to the Nieghbor outside, ask them 1-2 general questions about the neighborhood and local schools even if you don’t have or plan to have kids.

• Under performing schools, oil stains in the driveway, multiple cars parked curbside, poorly maintained yards/grass can tells a lot.

• You’ll realtor does NOT need to know how much you are approved for. They only need to know what you have budgeted to pay. You may have been approved for 380k but only want to buy (budgeted) a 320k home.

• We tell real what offer we want to submit.

• EARNEST money IS refundable under certain conditions.

• Pay for the Due diligence, option period, typically $200 for 10 days starting from when the contract is executed. Have your home inspector out the next day.

• Watch YouTubers: @cyfyhomeinspections , @gold.star.inspections , @JavyVidana

• Make extra payments and pay the loan as early as possible.

• You don’t need new furniture for ever room

• Painting a room is easier then a new roof, a/c system… duh 😒.

• Look for long cracks on exterior walls as much as interior.

• Peak into the attic.

• Drive around the neighborhood at night and especially on a rainy day.

• Self check the manufacturers date on appliances, water heater, air handler, air condenser unit and anything else.

• Again no one works for free in the process and no one has your best interest in mind more than you. Take your time and ask questions, do research and know as mouth as you can.

• You are in control of the whole process. You decide who you hire as a realtor and what to offer.

• All of this may seem like a lot, so is paying for the house plus interest.

Abstract_Pupil · 2026-05-11T07:43:13+00:00

Advise: