Quote Originally Posted by xbn83
Forgot to add, right now is the buyer market, most of the time the seller will pay for closing cost. Sometimes they don't, it just all depends on the negotiation part. In my case, I did not have to pay ~$6k for my closing cost, the seller paid all. If you buy the house through real estate agent, you won't pay them anything either. They will get paid 3% off of the selling price, and that comes from the seller. Basically the seller pays his or her agent, your agent, and closing cost (this one is maybe).
I'm going to fine tune your post a little.

Most of this information is true. The one thing I wanted to point out is one main thing:

It is a buyer's market right now, but that's not really the reason the seller pays for your closing costs. The closing costs in fact actually truly belong to the BUYER. Why? Because between the buyer and the seller, it is only the BUYER that is getting a new loan (which is why there are closing costs to begin with). The main reason sellers pay for any closing costs is as an incentive for YOU to buy THEIR house as opposed to their neighbor's. So, yes it is a buyer's market and yes because it is so competitive most sellers are willing to do darn near anything to move their properties.


Another thing you need to do is your bank account. Making sure you prep your bank account at least 6 months ahead of time. They will ask for your bank statements for the past 6 months, and review them.
Good advice.

NSF's and Overdraft Protections on someone's accounts are a big NO-NO when you are buying a house. We also check to see how long money has been in the account (which is called "seasoning"). Some programs (majority) don't allow you to plop large amounts of money just before you buy a house into your account. There are ways around this too BTW.



Oh, ARM (Adjustible Rate Mortgate) is very dangerous to deal with. You have to be very careful because the interest rate will be much lower than other types, but the interest rate will be varied depend on the market rate after a certain fixed time. Even with ceiling and floor set, it is still very dangerous. Loan officer could mislead you into it.
You are partially right.

ARM's are indeed dangerous IF you use them as the ONLY WAY you can afford a payment. If you are using it, as it was designed, as a short term loan where you are wanting NOT to build equity but to keep your payments down as low as possible BECAUSE you are PLANNING on either moving or selling BEFORE it's due to adjust, then you have a good loan. So, if you are an intern who KNOWS that in 5 yrs you will be relocating to another state because your hospital already told you so, then there is no reason for you to build all kinds of equity. You just get an ARM and call it a day. Save your money now, and then later when you get to a place where you'll permanently grow roots, THEN get that fixed rate mortgage. This type of situation is the only way I would suggest anyone get an ARM.....IF you are planning ahead and KNOW that you have to make a decision BEFORE the rate jumps.

Good info though.