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First Time Homebuyer Series -- FHA - Conventional - VA - Subprime -- Part 1 of 5

FYI - (these tips in this first time homebuyers series are not just for newbies/first time homebuyers)

first time homebuyers

Reality.... Buying your first home can be intense, but still can be FUN with the right people. There are many professionals out there that are willing and able to help you with this process. But the more that you understand this process, the easier and more comforting this experience will be remembered with pleasant memories.

You first need to align yourself with a good loan officer and real estate agent so as not to get led down the wrong path. I am not here to SCARE YOU, but I am not here to paint a pretty picture and just tell you to trust anyone that says "I promise" or "don't worry". These are commonly used terms in the mortgage and real estate industry. Randy Prothero talks about more amateur Real Estate Experts than ever before.

In this 5 part series, I am going to give you advice, my opinions, and my expertise as a loan officer with over 16 years of experience just in the mortgage industry.

mortgage shopping

One piece of advice is that this can sometimes take time. It's not like shopping for clothes, furniture, or even picking out a car for that matter of fact. Sure, I could get you approved for a mortgage in 1 week. You shouldn't be waiting last minute to do that though. My concern is don't buy a house just because you need to be out by a certain date. And DON'T wait with 2 months left before your rent lease is up. I am starting to see this as a problem as of lately. Just because there are a lot of homes on the market, doesn't mean that you have a better chance of finding your dream home. Talk to a realtor that knows the area well. Don't forget, there are other buyers out there also, looking for the same. Meaning..... more people will bid on the better homes out there, with multiple offers. That is why getting not only pre-qualified for a mortgage is important, but possibly Pre-Approved (knowing the difference).

hot air balloons

On a more serious note, especially now, rates can move on you at any given time as quickly as a hot air balloon can go up. You need to be working with a professional loan officer that understands the market, rates, and regards to rising rates and why. Getting good advice to when you should lock in your interest rate can go a long way. If dealing with an application taker, it could cost you thousands of dollars.

Watching the market is especially important if you already have contracts on a home. I locked in a few of my clients last week because I do keep an eye on the bond market daily. But if you are still shopping for a home, that lender won't be able to lock you into a rate until you actually find a home. You want a trusted loan officer that is on top of this and giving you updates and not waiting until the last minute. And keep in mind when shopping for a mortgage, don't always focus on Rate. Payment is just as crucial.

piggy bank

Lastly, even if you are just starting out, start saving a little here and a little there. Sure, there are so many mortgage financing options out there with even 100% financing programs. There 100% programs like the USDA rural housing program or like VA loans. But each program is different. Word of advice, speak to someone qualified and not just fatherly advise even though he may mean well. Or those that just bought a home, your neighbors, or even co-workers. As mentioned above, rates and programs can change daily.

And when speaking to a loan officer, if they are quick to pre-qualify you, this could be a red flag. Please read Purchase Price vs Payment. What's missing? And don't fall into the trap of hearing negative rumors that certain mortgages are bad. Example, I hear from certain realtors and loan officers that FHA loans are a bad type of mortgage. Not true for many reasons, which will be talked about later.

Conclusion : In Part 2, I'll talk about more specifics when it comes to getting pre-qualified and pre-approved. What to look for, how to find those professionals, and how to be better prepared.

Please click all links because each link is related to this topic and will share more secrets and give you a much better outlook in regards to purchasing your new dream home.

Photos : All pictures curtesy of istockphoto

The First Time Homebuyer Series :

Understanding if you should rent or buy :

Renting vs Buying -- Understanding the difference........ FHA? -- Part 1 of 3

Renting vs Buying -- Showing the difference in $$ -- Part 2 of 3

Renting vs Buying -- Knowing your loan options -- Part 3 of 3

First Time Homebuyer Tips : FHA - Conventional - VA - Subprime -- Part 1 of 5

First Time Homebuyer Tips : Getting Qualified & Knowing your Credit -- Part 2 of 5

First Time Homebuyer Tips : Understanding the total mortgage process -- Part 3 of 5

First Time Homebuyer Tips : FHA, a better mortgage program? -- Best Programs & Why -- Part 4 of 5

First Time Homebuyer Tips : Summary - Red Flags to be aware of -- Part 5 of 5

First Time Homebuyers Tax Credit info :

Use a 6 month gift from a relative to buy a home, thanks to the Tax Credit

First time homebuyers Tax Credit - How to use it before you actually buy your home....

Buying Tips :

What's behind a home inspection.....

FHA Loans & Energy Efficient Mortgages...

FHA 203-k Loans
Asbestos and Your Health, Tips for Remodeling your Ann Arbor Home -- This post does talk about some specific places in Michigan, but in general, Missy Caulk gives us some great information on homes built prior to 1980 in regards to asbestos. This is a must read.

- FHA Loans - USDA Loans - Conventional Loans - VA Loans -

Experience & Knowledge at its BEST !!!

________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

Posted by Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans on 11/23/2008 03:25 PM

Comments (40)

Shopping for Mortgages in the Mortgage / Finance Channel

first time homebuyers, 1st time home buyers, first time home buyers, fha loans, prequalified, preapproved buyers, pre approved, home buying process

Originally posted at: FHA Mortgage Expert - Tri-State Area - New Jersey/PA/Delaware: First Time Homebuyer Series -- FHA - Conventional - VA - Subprime -- Part 1 of 5

This post has been included in Maryland Information Prince Georges County, MD Information Landover, MD Information
Post is included in group: The FHA Mortgage Group
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40 Comments on First Time Homebuyer Series -- FHA - Conventional - VA - Subprime -- Part 1 of 5

NOV

2008

You provide a lot of good advice to buyers who want to purchase their first home.

Jeff - This is great information for all first time home buyers. I'm looking forward to the reading the rest of the series.

Jeff - a very nice compilation of information needed by the first time homebuyer. I am looking forward to the rest of the series.

Good post Jeff!

A good way to get the engines started for those first-timers.

Great advice and very thorough. thanks for the post

Glad to see a blog geared toward first time home buyers from the guidance of a mortgage broker I do something similar but handling the real estate aspect.

Cool! Okay--when's Part II coming? :)

First off, not sure why my paragraphs don't line up next to the pictures... there must be a bug of some sort.

CHRISTINE..... . thank you... I try. Educating the consumer is my first priority. thanks

DONNA..... . thank you, I hope to do one a day, until it's finished.

MIKE..... . my pleasure... as mentioned, I just believe in good education. Something that seems to be lacking even more than ever.

BO.... . I hope so... first time homebuyers seem not to get the education that is needed. Thanks for the polite compliment.

KRISTIN.... . thanks for the kind words...

HEATHER aka ORLANDO real estate ...... . I agree, we need to see more stuff geared to first time homebuyers. And I am actually a mortgage banker. And this is not a knock on brokers, but there is even a bigger difference now than in the past. Thanks for your input.

LISA.... . when do you want part 2? lol Please deposit $25... ;o) Seriously, hopefully later today. thanks

Jeff, read our latest blog post that explains (partially) what's going on today (in regards to your photo alignment isue, etc).

Your post is very informative and if this is just part 1 of 5 then everyone should be well informed of the morgage market after part 5. We'll come back and read this after the AR issues are fixed. Thanks for yet another awesome contribution. I look forward to reading the next 4 parts. Keep up the good work associate!!

Great information, Jeff. Thanks.

Liz Loadholt

Jeff, good idea for a series. I will look forward to reading all five parts.

I like this post. It's true. The home buying process really can be fun when professionals are involved, to handle all the tough stuff. And you've provided some great links to help the buyers.

Great advice. And I agree, take your time it is a HUGE decision. But also, like Jeff said - be ready to move when the time is right and you find the home of your dreams. Get a great "team" in place and enjoy moving toward the joys of home ownership!

...geri

Sounds like a great series, Jeff. Keep up the great work!

I like all of the helpful link and info that you have on this Blog today. You are good at what you do! thanks

NATHAN & EVERARD..... . I am hoping that everyone is well-informed of the mortgage process... to include what to look for, how to go about things, and if they feel like things aren't going well, to know what to do then. And thanks for the polite compliment... too bad that the pics didn't match up as of yet. And yes, I did read your post. I knew there was a hiccup. And I had already e-mail Brad and them. I actually first found out around 2 am this morning.

LIZ..... . thanks... and don't forget to come back for the other parts. ;o)

LISA F. ..... . I hope many buyers read this, even those that have bought before. Many things have changed. Thanks

LISA..... . it really should be fun. I have a client in CT that it's not fun now. The realtor doesn't know what he is doing... told the borrower that bank owned properties will not allow out of state lenders to finance the buyer... lol And now telling her that she can't qualify for a higher amount that I approved her for. It's a shame...

GERI..... . yes, take your time, but don't be stupid when you have a good deal either, but then to wait, hoping the price comes down more. If you are ready and it fits your budget, jump on it and don't look back. and yes, having a great team.. even if the realtor doesn't know me, work with me, not against me. And thanks for the polite comment.

I have learned that on Jan. 1 FHA will be 3.5% down. Keeping up with this is important for me. I was thinking of writing a post about this. I think I am going to re-blog yours instead. I will be waiting for parts 2, 3, 4 and 5

I tried to re-blog this post but AR is acting really funny today. I will bookmark it and try later. I will also subscribe to your blog. :o)

Mike... I deleted your comment because you left a link to a mortgage site.... here is what you said..

comment by mike

Jeff another great series I would expect. I always enjoy reading your post. From a Realtors standpoint they are very informative and easy to pass on.

RICH..... . thanks for the kind words and I would have to assume the feature.. thanks again..

TERA...... . I really do appreciate that comment... I truly try. Thanks and I hope you find the rest of the series helpful.

MARLENE..... . yes, FHA is going to 3.5% down as of Jan. 1st, 2009. I already sent you an e-mail about all of that and more details.. thanks

MARLENE.... . Brad Andersohn wrote about this tonight.... Turkey's gone wild.. well, he said, the Turkey Ran WIld... lol

MIKE....aka me copying your comment. . not sure if you are a member of AR, but many of us don't like links in the comments. Especially links which could lead prospective clients to another web site, in which you have a handful of loan officers on there.

Besides, I don't think I would want to write on your site. Several of the loan officers are not just writing, but advertising. One title said : VA loans 100% financing with Great Rates. Anyone can say great rates. What about their knowledge, the service... etc etc. The next title said : USDA is the Best loan on the Earth... lol first off, there are only certain areas that you can use USDA programs. It comes with an income restriction. The rate is also higher. Yes, it can be a great loan, but all borrowers are different and so is each loan. You need to interview the consumer and know their goals before you can assume any of this.

So, thanks for the thought, I think... but I wouldn't be interested because I Googled some of the loan officers that you have writing on your blog... no thanks. .. end of story.

CHARLES..... . thank you very much for those polite comments. I am glad that it is easy to read and to understand. thanks again

This looks like a great series with some great information in the links as well...

Excellent, Jeff! Cool blockout on Mike's post - I think Ill blog about people leaving links in comments. Wait, already did! I love the way you handled it. I also love that you touched on pre-qualified vs pre-approved ... not that we haven't been beating that drum! I'll try and call you this week just to catch up -been really nuts-o in the mingled office the last few weeks. Best to you and congrats on the feature.

Great advice--not let's hope some of those first time homebuyers start to see the huge advantage to owning a home.

Dude...you are Mr. Dominant aren't you. Once again...kudos to a dominating....and, mind you, an informative post.

Jeff - I am looking forward to some "straight talk" about loans. There are still a lot of lenders talking out of both sides of their mouths.

Jeff -- Great post, I'll definitely bookmark this for future reference.

On a side note, I noticed that someone commented that the FHA loans are going to require a 3.5% downpayment after Jan 1, 2009 -- have you heard anything about that?

Hey,

Great job Jeff!!

Did you happen to catch the score in the Iggles game?

NOV

2008

SONIA..... . thank you very much... I hope the rest of the series lives up to its hype. thanks

KEN..... . thanks about handling the comments. I am not sure if I did so well in regards to another post, but I am getting tired of not so much the spammers, but those that tell me that I am wrong or a liar,... but they still don't show me their proof. It's all based on opinion. But any basic FHA guideline can be shown in the form of a mortgagee letter. I will send you an e-mail about this later.

In any case, thanks for comment and for the kind words.

DIANE..... . I hope they do find out the advantages of owning a home. And not to listen to the media all of the time. Thanks for the compliment.

LARRY.... . dominating? Okay.. maybe. I just love educating others and just putting it out there in simple terms. I just had a realtor in Ct. tell my client that banks that are selling bank owned properties won't deal with out of state lenders... lol Talk about trying to control your client and keep them to use your lender. Wonder what they have going on together? Sounds like a new blog this week... thanks

JOAN.... . hey, you know what.. that would be a good title of a blog... "straight talk about lending and mortgages"... just as Lenn Harley talks about Hard Core Real Estate... hhhmmm, I like it. thanks But yes, there are a lot of lenders talking out of their mouths. I just ran into one on a post of mine from last week and he is an AR member.. it's very sad. He has called me out. Has told me that I don't know what I am talking about. Yet he won't answer my questions directly with proof. You should read his comments in this blog. FHA loans vs conventional loans and here is one of the comments.. And then his 2nd comment of 4 comments total... He not only mocks me in his comments, but then he mocks a few others that actually reply back to him. But he still gives no proof... SAD

KERRY.... . I sent you an e-mail in regards to the 3 1/2% new down payment change. You can read about it here... New FHA down payment change for 2009 and thanks for the compliment.

TOM..... . yea yea yea, so your Cowgirls won... and yes, the Eagles stink... lol Seriously, thanks for the kind words....

Jeff, you do such a professional job.. consistently. Thank you for making me appear smarter when I refer to your information.

Hi Jeff: Great information - This is exactly what the doctor ordered in terms of staying in front of associates and buyers - In times of change and challenge it is imperative that we continue to educate and provide a valued service to all concerned. Hats off to you my friend.

Thanks for the great advice. I will check back often. I really like the blog. I am new at blogging but I am beginning to learn quite a bit from reading blogs like the ones I find on Active Rain. If I can ever be of help just visit my blog or my website:

Thanks, Terry

Excellent info. I remember being scared to death when I bought my first home. And to tell the truth, even after buying 4 homes, I didn't even begin to understand the process until I became an agent myself.

SUSIE.... . wow, well thank you very much for those kind words and for the compliment. ... and my pleasure. Thanks for your readership and support. Now, please deposit $10 into my 'help me live' fund.. lol <teasing> It's that Monday morning humor that keeps me going.

GWENN.... . I find education is gold and it's one thing that has actually kept me in business. And thay education is very key and lacking in today's mortgage industry. I get more and more potential clients tell me that they learn more from me in a day than what they learned from their previous loan officer in a week. I just take pride in it as I am sure that you do also. Only the strong will survive and those that take pride. Thanks for the polite compliment.

TERRY...... . my pleasure. And welcome to Active Rain and to blogging... once you get going, it's not as hard as it looks. We all had to start some where. My biggest advice is to write quality stuff. Thanks for the comment.

HOLLIS..... . I am sure many new homebuyers are nervous.. especially in today's market, with all of the bad news and such. And it's up to us to not only hold their hand, but to educate them on the way. Thanks for the compliment.

Congratulations on your feature! Furst time homebuyers mneed more coaching then ever before. I'm going to link to this!!

NOV

2008

Great post Jeff. My son is just beginning the process of buying a home for the first time and I am offering as much guidance as I can, long distance (he's in Iowa - I'm in Arkansas), but your information can be helpful to both him and myself (as I always am learning). Thank you and I will watch for your upcoming blogs.

Jeff Belonger = Active Rain God ..... how you continue to produce quality posts is beyond me. You should get paid for this...... Go Skins!

JENNIFER..... . thank you.... and I agree, first time homebuyers need more coaching and education more tha ever in today's market. thanks

CINDY..... . well, I would love to offer some of my advice also, just to make sure he gets the right answers, if you don't mind. I will try contacting you about this. In any case, thanks for the compliment and hopefully I will have part 2 out tomorrow.

LEWIS.... . wow buddy... that has to be one of the most flattering comments that I have ever received. Thank you very much.