Home Forums Hunting & Shooting Hunter's Campfire New mortgage

I am looking to buy my 4th home. The last home I bought was in 2016 and I sold it in April of 2021. I have been renting since then. Mortgage rates have gone up a bunch since 2016 when I got my last mortgage. I need to get a pre approval letter from a lender but am not sure how best to proceed. I am not an expert in obtaining mortgages but basically hope to find a lender with low fees and low rates. As I remember it, some lenders have lower fees and lower interest rates than others.

I have enough cash from the sale of home number 3 to put anywhere from about 50 to 80% down on the next home.

I have a checking account with US Bank with what will be our down payment in that account and it seems their fees are reasonable but I have not done much shopping around yet.

Anyway, I wonder if some of you might offer some advice or tips on how best to secure the best mortgage. Thanks!

Anyone who buys a house right now and absolutely doesn't HAVE to, if a fućking idiot.

Find a good broker, shop rates and fees .... Rocket Morgage is the big boy. If you're a Vet you have lots of options.

If you were in SC I'd put you on my broker who has handled a lot of investment buys for us in recent years, he's the best here but .... there is always one independent broker in every state that works hard for his clients and has a good rep with various lending companies.

If you can find a good money man right now, a private investor ... ask your lawyer, they always know people looking to invest at lower rates of return, especially now with the market jittery and in disarray.

Home prices are dropping, you may want-to wait until the recession is in full tilt ... lock in a rate now and shop just until it expires, then buy it down a quarter or half point since you are flush with cash.

Buy below your means ... make this one a prudent investment. Take advantage of your cash position and good credit. Don't be in a hurry.

They will pre-approve you to an absurd amount, far more than you can ever hope to pay. There are millions of idiots who will buy right up that limit and they'll probably be in foreclosure in 5 to 10 years.

Wait 6-12 months. If not you’re going to be underwater on that mortgage for the foreseeable future. The smart money is cashed up waiting for buying opportunities.
Same with buying vehicles.

Shop around a bunch of different mortgage brokers. Ask friends and family who they have used.

I agree that I don't know if I would be buying right now.

Housing market is on the downside, rent until you can step in with lower values and rates

I would wait at least 6mo as others have said. Would also shop around for a local credit union that offers a mortgage interest rebate.

2023 is gonna be ugly. Sit tight.

2023 4Q is gonna be Rwanda. Blood in the streets.
No way I’d buy now unless it was 30% below current market value.

It’s a terrible time to buy a house or worse yet, take out a mortgage. Rates are about 7% now compared to about 3% a year ago.

I've had decent luck with Credit Unions. Sometimes I got a lot lower fees especially if it's a loan they carry in house. Most sell off the loans like every other place but some have special in-house options but they are usually shorter term. My home is paid off but about a year ago I thought about borrowing against it to build some rentals. The credit union offered me 1.1 million at 2.1% on a 15 year with really low fees. That same loan is over 6% now. I think if I were in your situation I'd be inclined to wait another year or so and see what happens.

Bb

You have 80% saved. I’d keep socking money away until you have what you need. Prices might come down to meet you soon.

50-80% today is 125% in not too much longer.

A guy sitting on capital is in a good spot and should pray rates hit 20%......it only makes his buying power that much more.

Seems the consensus is to wait awhile before you buy.

I would tend to follow that advice if you can. New job, new location, what's the problem with renting for awhile?

And as I've said before, good luck in this part of your journey through life.

Don’t do a heloc I’m stuck in one now

The only thing waiting will offer is higher mortgage rates, wait long enough and you could very well see the double digit rates of the 80s.



There is zero history of high mortgage rates causing the housing market to decline in price.

(Mortgage Rates vs Home Price)

There will be fewer homes sold and appreciation will likely slow to a crawl or just remain flat.

It's not our first rodeo at using high mortgage rates to slow inflation.

Forty years ago, the Fed pushed the economy into a recession to stop inflation. Here’s how it played out.

People just aren't gonna be selling, why would they?
It's the entire idea of raising mortgage rates, they are trying to slow spending.

If a guy down the street buys in with a 12% mortgage rate, why would that inspire people the are sitting on 6% or even 3% rates they secured over the last 20 years to sell?

They're not, they are going to sit tight, remodel, stay happy.

There will always be those that have to move and will sell, which will probably be a pretty equal match to those that have to buy.

Just find a decent, fair deal and snag it before you are looking at the higher mortgage rates that they have promised us will come.

I remember the 10%+ days. Ours was about 7%. We got ours paid off and haven't made a payment since '07. We have no intention of moving anywhere until we're to old to deal with this place.

The market on homes varies wildly.

I am selling one right now. Close November 3rd.

The July appraisal was $362k...

The September appraisal is $500k+/-...

Would I buy a new home now if I needed one... maybe. Buyers and seller all panic in different ways. MANY MANY variables.

As for 80% down... I probably would not do that.

I would go 20% down and invest the extra money wisely... If you get lucky with your investments... pay the whole thing off in a year... kinda thing.

Will there be a surplus of homes in 6-12 months... some areas YES!!!

But some areas NO...

---------------------------------

Maybe post a zip code and we can all look at the "trend" in that zone.

I use Zillow for this pic... not because they are the best... but because they are consistent (i.e. I have use the same link for years to study trending rates).

Same with Yahoo Finance (they suck... but they are "familiar").