Approved to buy my first home!

[NannySlayer]

What’s an ARM? [emoji102]

I asked for a specific amount to be approved for what equates to what I wanted my monthly mortgage to be so I wouldn’t get sucked into “you can have this much and never be able to make payments”... is


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[Rick]

What’s an ARM? [emoji102]

I asked for a specific amount to be approved for what equates to what I wanted my monthly mortgage to be so I wouldn’t get sucked into “you can have this much and never be able to make payments”... is


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Adjustable Rate Mortgage - it starts w a low interest rate and increases after a year or two...they will also tell you that it could go down...get a fixed rate for term of loan

[Uncle Saggy]

An adjustable rate mortgage


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[mfarmer]

What’s an ARM? [emoji102]

I asked for a specific amount to be approved for what equates to what I wanted my monthly mortgage to be so I wouldn’t get sucked into “you can have this much and never be able to make payments”... is


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ARM- Adjustable Rate Mortgage
Meaning for 5 to 10 years your rate is fixed, then can adjust after that term to what the current rate is... usually capped at 2% or so but could turn a 4% rate into a 6% rate and inflate your payment.

[RattlesnakeDan]

Be sure to buy at least a 3 bdrm home. I have owned a few 2 bedroom farm houses and they are tough to sell.

[muzzlebrake]

Personally I would never buy in a POA or HOA. Ain't no nosey old biddy gonna snope around my crib and tell me what kind of flowers I can and can't plant or what flag I can't fly or tell me I can't have a MAGA sign on my truck or in my yard.

[deerwatcher51]

Three things, location, location, location.

[Texastaxi]

What’s an ARM? [emoji102]

I asked for a specific amount to be approved for what equates to what I wanted my monthly mortgage to be so I wouldn’t get sucked into “you can have this much and never be able to make payments”... is


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Ask if that amount included your insurance and taxes ... known as escrow.
You can get a lot of house, for a relatively low payment, BUT you're going to have to pay the property taxes and insurance somewhere. Most people choose to have those payments added to your montly P&I (principle and interest). The other option is to pay them yourself, every year, but you have to be disciplined enough to put that money aside every month or you'll have to shell out a large chunk, once a year.

[hunt247]

Put enough money down to avoid PMI.

[Charles]

Make sure the home is in the most desirable school district in the area.

[NannySlayer]

Can I PM someone what the lender sent me so we can break it down what this all means?

Thanks for all the help.


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[gemini2759]

Compare what you can afford on a 15 year mortgage vs a 30 year. Also, look at the difference in interest paid.

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[kkp005]

Remember as your house appreciates your mortgage goes up to. Make sure to give yourself some breathing room on your mortgage.

^^^^This!! Property taxes are on the steady rise. Make sure you factor this in for the future

[RascalArms]

Put enough money down to avoid PMI.

Now you know for a fact that’s hard to do....especially for a first time home buyer.
Avoiding PMI (Private Mortgage Insurance) requires 20% down payment of the loan, thereby establishing enough “equity” in the home to where the lender is protected somewhat.
If you have less than 20% of the sales price or value of a home to use as a down payment, you can basically do 2 things.
1. Establish 2 mortgages where you pay PMI on the first smaller loan (usually the amount under the 20% down payment you are lacking) and then pay the second mortgage until said mortgage reaches 78%, at which point the PMI mortgage can be eliminated.

2. The only other option I know of is pay a helluva lot higher interest rate without PMI.....provided you can qualify

[hooligan]

Get with Trey (tex_cattleman) on here and have him quote you too. He’ll walk you though it all and make sure you are staying where you want to be payment wise and that you understand the process