How should I shop for home mortgages

Purchased a home last July using an FHA loan. My credit is great but partner's was 680 at the time. One thing to know in advance is you're going to need more than 3.5% down if you should go that route. In the Denver area where I live sellers had specific amounts they required for earnest money. It was $6000 for the home we purchased, which ended up being applied towards closing costs. In the end, we were out an additional $8000.

 

Look for customer reviews on any company you're thinking about going with. Sort by negative comments first because you could be the lucky winner of one of those experiences.

 

Be sure to give yourself plenty of wiggle room should the closing date change. Ours did multiple times going from the middle of June until we finally signed paperwork on July 3. We were supposed to be out of a rental by June 30th and had a seriously pissed off landlord in the end.

 

Another thing to know is buyers with cash offers will beat FHA or traditional loan offers. The house we ended up with is a "fixer upper" compared to everything else we put offers on. We couldn't compete even at $25-30k over asking price. Know that if you make an offer you will also have to have the home valued for that price in order for the financing to go through. I believe they required 5 comps for ours.

 

Good luck! I hope you have a much better home buying experience than we did.

/r/personalfinance Thread