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Mortgage Broker?


351mach11647545510

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First rule. USE A BANK and don't get screwed unless you feel you know enough or have someone who can look over the paperwork that does know enough. Hell if you get your own Realtor they might actually help you with that, but I still suggest a bank.

 

Evan

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Well then talk to a Realtor. A good one will know all about the types of government plans you can use. I know a really good one as far as selling a house goes, but he doesn't like the government plans for some reason. Probably just because it means he'll be dealing with people buying cheaper homes if I had to guess.

 

Evan

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A Realtor doesn't loan you the money for a home (the mortgage). They want to get the most money out of you to increase their profit margin. There are seller's agents and buyer's agents. The seller works for the current home owner and wants to get the most money for the owner. The buyer's agent works for you, the one searching for a home. They help you find what you want and they try to get the lowest price.

 

Most realtors want about 6% of the sale. If you have an agent working for you, they will usually negotiate to get half of that 6%. Either way, once a home owner or perspective buyer gets involved with a Real Estate agent, they are going to pay for it.

 

The process of buying a home is no different than buying a car. You can finance it (mortgage = fancy name for a loan) or buy it with cash. Either way, you'll receive title for the home. The lender (usually a bank) will have a "defualt" clause in the mortgage contract just like the one for a car. You don't pay, your stuff gets repo'd!

 

Going through a Real Estate agency is the same as buying a car from a used car dealer. You could find a home where someone is willing to go through the process of selling by themselves (For Sale BY Owner) just like you can buy a car. Give a guy cash, he hands you the title, you go the BMV and get a new title, new tags, and now you are the owner. You don't need an agent is my point here. You just need to do some more research and LEARN the process of obtaining a mortgage.

 

First, find a lender (your bank) and get a pre-approval for a certain amount including the terms of what the loan will entail. Such as, you are pre-approved for $100K @ 7.5% fixed for 30 years at $500 per month. You may or may not have to open an escrow account to pay for insurance. I vote to find a lender without requiring an escrow OR at least tell your bank you ain't going for that.

 

You will learn the most while going through the pre-approval process. DO THIS before anything else! Go to the bank, sign in, sit in the waiting area and then talk to a loan officer about buying a home. If you go in around lunch time, you can offer to take him to lunch while he tells you everything you need to know.

 

Second, find a home WITHIN the amount you can afford - you'll figure this out in step 1. You'll fill out some paperwork showing what you make vs. what you owe (credit cards, loans, etc.) BE HONEST here! You'll only hurt yourself for not being honest about what you can afford.

 

Third, negotiate a price for a home with the owner. Knock on the front door and talk to them. If they want you to go through an agent, look elsewhere, they are idiots! If you can come to some agreement, PUT IT IN WRITING.

 

The process is simple:

 

1. Get approved for a loan.

2. Find a home.

3. Make offer(s).

4. Closing = doing all the legal paperwork to change ownership of the property.

5. Paint and move in.

 

Buying a home is NOT difficult. Agents want to make it sound hard so you'll use them. You don't need them! Go make friends with the loan officer at you local bank. He will teach you everything you need to do since all of our situations are different.

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