waxwabbit

So, my wife and I went to our Bank of america, to ask about mortgages for when we move from Florida to S Carolina, just to see if we could get an idea of what we could afford to borrow etc, and we came out actually being pre-approved.......

but man, mortgages......blurggh

neither of us have had a mortgage before, and we have been given all this info, and options.........how on earth did you guys decide which to go with?

I think we shall still shop around though, see if we can do better.

Who here, ended up going with their regular bank?

I am thinking my life could be taken over though; I know what I am like just shopping around for an electrical item online - well, this is gonna be for a house - I am not gonna be able to work!!!!! research research research!

Oh well, at least I am beginning to feel noticed in this country now, I can get credit!

AmerLisa

Hey Congrats Wax. We did the same thing in January (not went into BofA, but consulted a realtor recommended to us) and came out pre-approved by a lender she worked with. We are now in the process of buying a brand new home....woohoo!! But, talk about the stress, etc, etc.

BritGuyTN

go to www.bankrate.com to do comparison shopping on mortgages

few pointers

1. don't pay any points
2. don't pay pmi
3. don't pay 'lender's fees'

if you are likely to stay in the house for less than 7 years get a 3 or 5 year ARM (adjustable rate morgage) i.e. fixed for 3 or 5 years and adjustable after that like people in the uk have

you should be able to get 5.25 -5.5% on a thirty year fixed mortgage using the above criteria and less than 5% on an ARM

Englishmum

Top Tip:

Go and buy "House Buying For Dummies" (that 'how to' series with the yellow and black book jacket).

You should find it (and similar books) at any Borders or Barnes & Noble - (including their online stores) or of course, Amazon.com

We found it to be really helpful as it explains PMI and why you should avoid it and what 'points' are - yes do avoid those too, it's a rip-off!

Good Luck and remember - location, location, location!

NC Penguin

My spouse and I bought our first house last year. Neither of us had owned a home (both UK and US) but I researched into mortgages and all that jazz in a matter of weeks.

Saw 7 houses in 10 days in March, put in offer that month and moved into the house in May.

For the complete novice to mortgages, check out a booklet published by Fannie Mae on mortgages and house buying. I would imagine the booklet is available online too. Don't bother asking me for the URL. If you can't find the site, you probably shouldn't be buying a house!




NC Penguin

AdobePinon

Mortgages are a pain in the ass. Expect this to take a considerable amount of your time. Shop around. Don't be afraid to tell a broker that he's full of shit if you think he can do better.

Like those above, I'm firmly in the no points, no PMI camp.

Be very wary with closing costs. Brokers like to tack extra crap on the day before you close the deal. Read the fine print very carefully - there is a lot of it, and don't let them rush you at any point, especially during closing. Remember that the broker does not owe you a fiduciary duty - he's looking out for himself. And don't be afraid to drive down to his office and give him an earful - he's going to prioritize his wealthier customers first unless you make it clear to him that such behavior is unacceptable. Be careful of taking broker recommendations from realtors and vice versa - they're all in the same club. Listen more carefully to the title company - they have to sit your asses (you, the seller, the broker, the realtor) around a table and get you all to agree and sign the deal, so they have a pretty good idea of who they can work with and who's likely to torpedo the deal with incompetence.

NC Penguin

The above rates depend on the state of your credit/length of credit history. If you're planning to buy the house in both your names AND your wife's credit score is good (check score before you start shopping for mortgages. Forearmed is forewarned), then you'll get a good interest rate.





NC Penguin

englishnurse

how does the credit rating thing work in the usa?? if you move there from england do you take your past history with you or do you start from scratch?

Manc

start from scratch pretty much.

englishnurse

always a good reason not to pay back the barclaycard then heheheh

Manc

unless you ever want to return to UK.

englishnurse

yeah.... that could be a problem.... best pay up then
thanks for the advice!

Englishmum

We had no credit rating at all when we took out a mortgage in the US as soon as we moved here; my husband provided a letter from his company stating his salary and we put down a 20% deposit (which avoided PMI). We provided letters from our banks in the UK and Singapore which stated that we were in good stead with them (and that's the only thing they stated) but we did dig out our old bank statements and credit card statements to show that we hadn't gone overdrawn or had unpaid loans on the credit cards. The lenders take the view that someone is less likely to walk away from a property when they've put 20% down on it.

We also had (and still have) L1 & L2 visas, so permanent residency is also unnecessary.

englishnurse

so.. more deposit equals better mortgage rate and no pmi payments should manage to sell the house here so hopefully there shouldnt be a problem. thanks

AdobePinon

There are other ways of avoiding PMI, but 20% down is the easiest if you have the cash.