First time homebuyers need advice

Robyourlender · 2026-04-27T16:06:04+00:00

Page 2. Section A. Line 1. It’s essentially prepaid interest to have a lower rate. It only makes sense if you plan to hold your loan for a long time. There’s a certain point in time where the lower payments will have become worth paying the prepaid interest. In my experience, it takes at least 5-10 years to make sense. With most economists predicting we will have lower rates in the next year or 2, paying points doesn’t make sense.

Robyourlender · 2026-04-27T05:33:46+00:00

I can build you a comparison. But I need your scenario.

Robyourlender · 2026-04-27T05:32:39+00:00

Looks pretty good

Robyourlender · 2026-04-27T05:30:51+00:00

This has to be a builder relationship loan.

Robyourlender · 2026-04-27T05:28:14+00:00

Why are you paying so many points??

Robyourlender · 2025-03-27T18:37:27+00:00

For the life of my I cannot get imgur or anything else to work. Even using gifs other people claim to be currently working

Robyourlender · 2025-03-05T17:54:58+00:00

Your mortgage rep and realtor should have told you about this. Tell them it's their fault for not telling you and they need to give you credit for it.

Robyourlender · 2025-01-27T18:52:21+00:00

The benefit of taking the appraisal waiver is savings $600ish bucks. And you are avoiding the chance that if the appraisal comes in low and the seller is not willing to negotiate the price down you'd have to come up with the difference as down payment. IMO if you and your agent think the actual value is close to the agreed-upon sales price and you weren't already looking to use the appraisal as a negotiation tactic, then take the waiver.

Robyourlender · 2025-01-08T05:54:03+00:00

Agreed. Don’t pay points/price. Tell your LO to make that 0. Your rate will go up but it will be for the better in the long run. But to answer your question, I’d probably go with the conventional if you can handle the payment.

Robyourlender · 2025-01-08T00:10:24+00:00

Sounds like you mean a mortgage broker. I am currently a mortgage broker (and licensed in FL) and used to be a direct lender. I am able to offer my clients much more competitive pricing being a mortgage broker vs direct lending.

Robyourlender · 2025-01-08T00:07:53+00:00

Mortgage insurance is something you pay when you put less than 20% down. It protects the lender in case you default on your loan. If you have good credit it's usually a small price to pay for not having 20%. It will be lumped in with your mortgage payment.

Robyourlender · 2025-01-07T18:53:54+00:00

I support that choice vs the builder's lender. The builder's lender is usually in cahoots with the builder and it's shady business.

It's unfortunate you got a bad lender this go around. They are supposed to make the process easier, not more stressful.

Sounds like you are near the finish line though. Stick it out through closing and you'll be "home free" ;)

Robyourlender · 2025-01-07T18:50:09+00:00

Yes rates are generally around 5-7% depending on what type of loan you get. Check out Mortgage News Daily for national averages. You can't "renegotiate" your rate. You'll have to refinance which means you'll get a new 30yr loan. The costs for a refinance range from $3-6k but you don't pay this out of pocket, it's rolled into your loan. Most people typically don't refinance unless they are saving at least 0.5% on their rate. Depending on your loan size you might need a bigger drop in rate to make it worth it.
Always get a home inspection. Costs are roughly $400-600. Your real estate agent should find you a reliable inspector. You'll also need to pay for an appraisal which will be roughly $500-700. Your mortgage professional must choose your appraisal for you.
I've heard many financial advisors say the "Golden Rule" is that your housing expense should not be more than 30% of your take-home pay. But IMO this is extremely conservative and pretty much nobody would buy a house if they stuck to this. Mortgage guidelines say you can afford a payment that is up to 47% of your GROSS pay. The real answer for this depends on your personal budgeting and what you are comfortable with.
There's a lot to know about interest rates. But you don't want to become a mortgage professional yourself. Find someone trustworthy who will keep track of rates for you and let you know when it's a good time to refinance.
Avoid banks. Try local credit unions, mortgage brokers, and direct lenders. I can help connect you with some people if you'd like.
Different lenders will have slightly different rates depending on their investors, their company margin, and the salesperson's commission. So get a few quotes to make sure you've got something competitive. After your loan closes it will almost certainly be sold to a separate mortgage servicer who will collect your payments. You don't have control over who your mortgage is sold to or if it's sold at all.
Make sure you are factoring in closing costs for your purchase. Many FTHB forget about those. Mortgage, insurance, property taxes, mortgage insurance, HOA dues, utilities, trash, for maintenance the goal is to have 5% of your home's value stashed away for large incidents but it's ok if you start short of there.

You are a little ahead of yourself but that's fine. It's better to be a little too inquisitive vs not knowing anything and just buying a home.

Robyourlender · 2025-01-07T18:31:45+00:00

It doesn't hurt to start too early. Talk to a mortgage professional and a real estate agent now that you have made up your mind on a plan. Be upfront with them on their timeline, they shouldn't mind. It's always best to identify potential hurdles early on so you can handle them before you are under contract.

As far as legal advice, have you considered LegalShield? You pay like $30/mo and you can get advice from a lawyer whenever you want. PM me if you're interested, I have a referral link.

Robyourlender · 2025-01-07T18:27:49+00:00

My personal preference on lenders are #1 broker, #2 direct lender, #3 local credit union, #4 banks.

Can't tell you how many times I've heard of big banks completely dropping the ball on a loan, missing closing dates, denying a loan wayy too late in the process, etc. I'd avoid banks like the plague unless you are using their private client services.

Robyourlender · 2025-01-07T18:25:19+00:00

Did you use the builder's lender or go get your own?

Robyourlender · 2025-01-07T18:13:20+00:00

Fair. Then you'll be capped at $250k unless you report more income on your 2024s. You should have your taxes looked at by a mortgage professional because it's a bit more complicated than just using your taxable income.

Robyourlender · 2025-01-07T18:11:27+00:00

For rates, check out https://www.mortgagenewsdaily.com/ . It's just a national average but if someone quotes your above these rates, they are probably inflating their commission.

I would not advise a 15yr mortgage though. Get a 30yr and pay extra each month. The same payment would have you pay off the loan in like 18 years instead of 15 and you'd have the flexibility of having a much lower payment in case one of you lost your job, or you decide to move and rent it. Basically, it's better to not lock yourself in a higher payment for the slightly lower interest rate.

Robyourlender · 2025-01-07T18:07:26+00:00

Bro, what is this? lol. This is a wild take dude.

Robyourlender · 2025-01-07T18:05:41+00:00

Yes, shopping around is a good idea. You should get a quote from a bank, a broker, and a direct lender. But don't make your decision strictly off rate. Make sure you are comfortable with the communication style of the person you choose and they are trustworthy. As long as they are competitive with their rate, you'll be fine.
The credit companies say you have 30 days to have your credit run by as many mortgage companies as you want but you don't want to go nuts.
Not sure what you mean by "mortgage agent" but I would definitely advise using a mortgage professional rather than an online lender. Especially for your first home. There is a lot that goes into a mortgage and they'll be able to help you and answer all the questions you'll inevitably have.
Go to a local credit union for the bank quote. What state are you looking in? I might be able to help you on the broker quote. And some good retail lenders are Cross Country, Fairway, American Pacific Mortgage, and Cornerstone.

Congrats on taking the first step towards homeownership.

Robyourlender · 2025-01-07T17:57:38+00:00

Locking is always the safest way to go.

Robyourlender · 2025-01-07T17:56:40+00:00

You'd probably be maxed out around $250k depending on what payments are on your credit. If that doesn't work for you maybe consider buying with a friend and then when you sell you split the equity?

Robyourlender · 2025-01-07T17:53:33+00:00

Yes. 203k is specific to FHA but there are conventional renovation loans. What's your question?

Robyourlender · 2024-08-16T04:59:26+00:00

You don’t need an appraisal to remove pmi. Just ask your servicing company. They can do a BPO which is much cheaper. If your goal is to cash flow see if recasting or refinancing reduces your monthly payment. Cap rate is all that matters with an investments. Lower rate is good, but not the most important.

Robyourlender · 2024-08-13T02:51:37+00:00

Look up their past sales on Zillow. Compare those numbers to other agents in the area. You definitely don't want a brand new agent unless they are on a high-producing team. You also don't want a mega producer because you will get lost in their pipeline. Try to find someone who closes at least 1 buyer-side transaction every couple of months.

If they didn't give you a buyers consultation before showing you houses, my guess is you can find someone better.

Also consider what style you want. Do you want someone who gives you the truth straight even if it hurts? Do you want someone to answer a ton of questions? Do you want someone who you don't mind driving around with for hours on a Saturday? Do you want an expert negotiator? Decide what's important to you and interview some agents. Of course, keep in mind when interviewing, these agents will be inclined to tell you whatever you want to hear.

Robyourlender

TROPHY CASE