Your post sounds good, but its total bs. You don't know the type of houses he has been looking at? You don't know the neighborhoods he has been looking in either? Firsttime buyers are special, even more so. Rates are dirt cheap, but the banks are more stringent now than ever before. No offense, but if you assume because she suggested a variable rate without knowing any particulars concerning the op, that makes her giving bad advice, you don't know jack about real estate.
Wow..just...wow. I don't even know what to say to this.
I will just say that under no circumstances do you ever HAVE to get an ARM over a fixed.
I dont need to know the "neighborhoods" he has been looking in. I underwrite and process Fannie Mae, Freddie Mac, and FHA home loans. They together own 9 out of 10 loans that are funded in this country.
The guidelines are standard nationally.
You are picking a fight with the wrong person when it comes to real estate financing.
I am a licensed agent and have closed several deals. First, rather than running off half cocked, you should have just ask her why she would suggest a variable rate. Is she assuming a financial picture based on conversation with you? Are you looking at properties that she may assume may be too expensive for you based on down payment maybe? There could be lots of reasons, thats why you should ask questions. As for financial info on getting pre-approved, she is 100% correct and she shouldn't waste her time without you getting approved. That is for buyers and can cost you a house.
If you and another person see the same house and they are pre-approved and you are not, a seller won't waste his time with you, even if you offer more money. I would suggest getting a full approval so you know exactly to the letter how much you need down and how much you can spend. That puts you in the drivers seat.
Also agents talk all the time, be careful jumping from agent to agent, they can refuse to help you. Agents work under ethics and very few will jeopordize one's license by violating them. They work together many times. Any deal done profits all people involved. Outside of you not getting some clarification of her variable rate comments, from what you have posted, she sounds like she is pointing you in the correct direction.
I find it unbelievable that I need a variable rate. I make decent coin, and the places I am looking at are ~$120-150k. I didn't speak to her in detail, and I am imagining her thinking I am broke since I don't have that "guy who actually has some money" appearance. She seems disinterested in me.
I am not looking at anything expensive (at least for NYC) at all, I have excellent credit, decent coin in the bank (I want to put at least a third of the payment down) and only one debt (my car.)
I seriously seriously question if you underwrite. If he is looking at a house for 200K lets say, based on his financial picture a bank won't approve the loan with a higher fixed rate. But will approve the loan with a lower ARM. That is a fact. Also Fannie and Freddy own many loans, but they don't process and approve the loans. Many of the loans Fannie and Freddie own are bought as bundles on the secondary mortage market. Seriously dude, if you do underwrite loans I question your qualifications. Neighborhoods also seriously matter as well. When that appraisal report comes back it damn sure gets compared to homes in that neighborhood and banks take note of that info.
Again if you do underwrite, I highly question your posts here. Now you may say based on the market rates as of today at these levels, its certainly questionable as to the suggestion of an ARM. But as I have stated multiple times without any financial info from a bank about the OP, no agent can give completely accurate advice.
This is like someone who was a janitor at H&R Block thinking he knows more than a CPA.
I'm not even going to respond to him anymore. It has to either be trolling or a low IQ.
The first person on my ignore list......congrats.
He's been on mine for months. I got tired of reading his hate speech some time ago. It's unfortunate when people quote him, thats the only time I see his crazy posts.
The first person on my ignore list......congrats.
Man that is so childish. Grow up.................................
I didn't think the agent was flatout bad based on suggesting getting an ARM. You and many others who sold Real Estate thought different. I gave good reasons why she may have done such a thing. People here are so quick after one or two sentences to run off with some judgement about somebody.
The OP has to help his agent, if he wants the agent to do the best job they can.
For a long term mortgage, why would anyone ever pick an ARM over a fixed rate mortgage? Isn't that how so many people fucked themselves over?
You accuse others about assuming shit they don't know while you yourself are assuming that the OP's agent is actually looking out for the OP and not herself.
PMI = Primary Mortgage Insurance.
I did not say you need a variable rate. But as I stated before I knew there had to be a reason for her suggestion. You have shared no info with her and you dressed sloppy like you were broke. So I guess she figured, hell this guy is probably going to need an ARM. So in the end who is at fault, the agent or you? And further more, never go house shopping looking like some bum. Some sellers may not like your appearance and won't sell to you. Clean your self up. Does she have to dress you to?
Actually, it is Private Mortgage Insurance.
http://en.wikipedia.org/wiki/Lenders_mortgage_insurance
-KeithP
No, I don't look like a bum at all. I don't want people who's homes I go to to think I am homeless lol. I just don't have that "preppy" clean cut look. It's hard for me to look good by nature - nothing I can do about it.
It's always the same when I go to car dealerships. No one gives me a second look until they run my name, or check my credit - then they are all on their knees with mouths wide open for me.
Also, back on topic - she has NO idea about my financials. I am very tight when it comes to letting people run checks on me. I explained to her how many successful car loans I had, and how decent my debt - credit ratio is, and she said I should look into a variable rate. I told her I didn't want a variable, and she insisted that, as a first time buyer, it was unavoidable. This is what threw my BS meter off on her.
She made assumptions without knowing anything. Plus, the shadiness of "checking" other places being sold by other realtors (telling me they weren't available, when they are actually available.)