Howdy,

Potentially setting my roots down in Tyler this year, next at latest.

I have had some meetings with realtors about $$, the search for homes, what to expect, lenders recommended etc.

Any words of wisdom or some "don't ever do this, or always do this" that you might help me avoid or make sure gets done?

Single, no dependents, will have a roomate or two for a bit to start, no student loans, but minimal up front capital at this moment.

Appreciate any and all advice!

Posting here and the East Texas board.

I was told that by a realtor friend as well.

What should I expect in my initial lender meeting?

Questions to ask? Numbers etc. to have ready for them?

Thank you !

With me it is usually a 10 min phone conversation if you are pretty straightforward W-2 type borrower. You would just need to have an idea of your income, your monthly debts, general idea of credit score, ball park idea of what price point you would like to buy and how much down payment you might be comfortable putting down.

After talking through the ballparked numbers and loan structure options, I would eventually of course need an application and the supporting docs before I can say with certainty you are good. But, with that 10 min call, I can usually give you a very good idea of some options, what you can qualify for and if it is tight on the debt to income ratio or somewhere else. For most people it is not a very big deal at. if you are self employed, have low credit etc it will often take more work.

If you haven't talked to them, I suggest giving Dana Staples a call. She has an office in Tyler & we've used her for several properties as have most of our friends. Native East Texan, super knowledgeable, nice, honest people. I think you;d have a great first time buying experience with them. Good luck & hope you enjoy living out here!


http://staplespropertygroup.com/

I would say to think:

1.) Monthly payment. You may be qualified for $xxx,xxx - but the monthly payment is what really matters. Have the lender run different scenarios (purchase prices/programs/etc.) to find a payment that fits your budget and goals. You can always commit extra to the mortgage, with no prepayment penalties.

2.) Estimate how long you will be in the home. If this is a 3-5 year starter home, it doesn't make sense to pay a lot of discount points (1 point = 1% of the loan amount). You will not make up your initial investment if you move to your next house pretty quick. If you really like this place, and plan to stay there for 7.5-8+ years, then it's a different story. I always show my clients the quicken loans mortgage rates page. Today, they show in big bold numbers at the top they are at 4.56% - but if you scroll down, you have to pay 2.125 points to get that rate. Just something to think about!

Just thought of a third thing that has helped many of my clients (in the DFW area) that can't find something affordable that they really like.

3. Renovation Mortgages: Without getting in to details, you can roll the purchase price of the property and the renovation costs into one loan. You close one time, and the contractors can begin their work. Once they are done, you move in to a freshly renovated house, done the way you want it, at an affordable price.

Biggest up front out of pocket expense for us was the home inspection. Read up on some of the inspection threads in the forum & ask around locally for recs.

Edit - after you look into your bank(s), call Jay above. Brokers can beat bank rates. Your "lender" is just a middle man to offload your note to the government, so don't feel like you have to be loyal to some person/institution. That's just how the business works. Fannie Mae bought our mortgage before we even made the first payment.