How does a first time buyer chose a lender?

fuller · Joined: 06 Aug 2008 Posts: 1 1.30 Dollars($)

I am looking into purchasing my first home in NH, but don't know where to begin with looking at lenders. I am afraid that if I begin to fill out all kinds of apps that it will hurt my credit, and that's all I've got! My income is low and my student loans are HIGH, but my experian score is 738...where to begin?

evolovik26 · Posted: Wed Aug 06, 2008 10:00 pm Post subject:

Well begin by figuring out if you can afford a home
Your total debt load (monthly car payments, loan payments, credit card payments, your future home payments + taxes and insurance on that home) should not exceed 45-50%
Then take a look at your assets (money in the bank, 401k, stocks, bonds, gifts from relatives ) to determine how much money you can put down on the house
Allow at least 3% of the loan amount for closing costs associated with the mortgage loan unless you looking to buy a home where seller agrees to pay your closing costs. (the amount should be discussed upfront and your Realtor should be aware that this is what you looking for among other things)
Now as far as lender is concerned its best to go to someone you trust first (ask where your friends and relatives got their mortgage and what were their experiences )
If you don't know anyone specific then check with 2-3 local reliable lenders and compare their good faith estimates.
If you have the information I have told you to gather (income, assets, debt load, down payment, and your credit score) then any decent loan officer can give you a pretty good general idea what you can expect

Its not going to hurt your credit alot if 2-3 lenders do a credit pull on you but I expect that with the credit score like this your credit is not going to be an issue but the other factors might.
Once you figured out who you going to work with go ahead fill out the application get preapproval letter and go find a house.

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