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dominiquedelsanto · Joined: 31 Mar 2008 Posts: 4 4.11 Dollars($)

My fiance and I are about to buy the house that we've been living in (renting) for two years. I have bad credit, but he qualifies for a loan by himself, so he's going to be the sole borrower. We've met with a loan officer at his bank and they've approved him for a 30 year fixed mortgage (Conforming) with a 6.5% interest rate. The lender fees are around $2200. I'm wondering if this is a good loan, or if we should keep shopping. We're getting pretty short on time, so we don't have time to do a lot of shopping (the seller wants to try to close by May 7), but we don't want to make a stupid mistake. Is shopping online for mortgages a bad idea? We live in Austin, Texas. My finace's credit score is around 735. His annual income is around $45,000. He has around $100,000 in assets. The price of the house is $185,000 and we're going to put $50,000 down. We would like to keep the monthly payments around $1000 or lower (not including insurance and property tax). It seems like a 15 or 20 year mortgage would be ideal - is there any reason why it wouldn't? Thanks in advance for any advice! We don't really know where to go from here...

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi,

Welcome to the forum.

I think your fiancé’s credit score, annual income is good. But the interest rate of 30 FRM that you are saying seems to me a bit higher. You should be approved near 5.75 to 6 percent of interest rates. I think you should shop a bit for lenders.

BTW I don't think that online shopping for mortgage is a bad idea.

Feel free to ask if you have any farther questions.

Best of luck,
Larry

Jessica

Well, not a bad idea if you're going for 15-20 year fixed rate mortgage. And your husband can be the sole borrower while both of you are on the deed. The rate which is being offered is good enough at this moment and I think you should lock it.

Your husband's income and assets are good enough! So I feel the underwriters won't object to his approval. But aren't you keeping the insurance and property taxes in an escrow? Is it making the payment too big if it's included in the monthly mortgage payment?

As for online shopping, well it isn't a bad idea if you choose the right lender. Check out the reliability report of such a company from the BBB website. Also, read through the testimonial pages and seek free consultation with some lenders regarding the right loan . A free consultation doesn't mean that you decide all at once; rather it helps you in taking the wise decision.

Regards,

Jessica.

dominiquedelsanto · Joined: 31 Mar 2008 Posts: 4 4.11 Dollars($)

So we've found some lower rates on 30, 20, and 15 year FRMs at Amerisave.com. (The lowest being 5.375% on a 30 or 20 FRM and 4.875% on a 15 year.) But I don't know anything about Amerisave and whether or not this is a reliable lender. I looked them up on the BBB website, but it said there was currently no report for the business. Is that a bad sign? Does anybody know anything about Amerisave?