Best place to get first time home buyers loan, bank or finance company?

I have to agree with the other person who recommended waiting until you pay off debt and get your credit score higher. At 630, your score isn't bad, but it could be improved. And the fact she doesn't have credit at all will hurt your chances for the best rates.

And if you could save some down payment, the more the better. You still may qualify for a 100% financed loan, but regulations have tightened on those lately and your options are fewer than they were just a few months ago.

If you really want to go forward now, I have one big piece of advice for you. Don't worry so much about going with a bank, a broker, or a mortgage company. Worry about finding someone you trust that you are confident will get you the best deal possible.

Ask for referrals from your friends, your family, your coworkers, etc. Referrals are a huge part of the mortgage business and you really need to trust the person you are working with. Do some research and you won't go wrong.

Good luck with this. I recommend waiting and taking care of your finances, but if you decide to buy now, work with someone you trust. I've included a link to our first-time home buyer's guide. Many of the points you touched on in your question are explained in detail here.

Before you go any further you need to learn about the different kinds of mortgages out there. There are a lot of people now loosing their homes becaue they did not shop wisely when buying their home. Finance companies generaly do not lend money for homes. Banks do handle the transaction but the loan is not from the bnk.

You also should be aware that lately there have been some of the mortgage holding companies that have gone bankrupt.

Buying a home is not the same as a TV or fridge. If you do not know then find someone that does know and be wise.

You may want to look into a FHA loan or (even better yet) a comparable loan like a SONYMA. There are new home buyer programs out there that can help you get the home you want and will allow you more flexibility than a loan that offers 100% financing. IMHO, those (100% financing loans) aren't worth my time. Research other loan options in your area.

FYI, SONYMA loans require 3% downpayment, but pay the majority of your closing costs. Also, there is a condition that you stay in your place as a "primary residence." One last thing, I was able to get a 5.25% 30-year fixed mortgage, so I am happy. (I only paid 1000 at closing in addition to my 3% downpayment. =} Same price range.

Go with a mortgage company. I am a former Branch Mgr/VP of a well known bank. I can honestly tell you that banks focus on a few products which may not exactly meet your needs. A finance company will have much higher rates and loans at finance companies actually pull your credit score down. I am now a mortgage banker at a well known mortgage company. We have over 1500 products to choose from. Some of the best loan programs on the market are for 1st Time Home Buyers. A score of 630 should fly with FHA (3% down) or 100% conventional financing. Depending on the state you live in, there are specific 100% first time home buyer programs with grants to pay for your closing costs as well. Email me at yourmtgbanker@yahoo.com. Let me know what state you are buying in and I will try to help you. Good luck!

Personally I found a bank was much better, also a small branch, where the branch managers seem to be more approachable. I got my home loan (first loan) from a small country bank branch & I am a single mum. My bank manager showed me every different way possible to get my loan, so I could apply the right way & not get knocked back. When I went into a bigger branch in the city, they would not even consider offering me a loan & did not offer any advice in how to get one. At the end of the day I think it all comes down to the bank manager. Good Luck.

The best thing for you to do is this. You stay off the loan entirely. She is the borrower and will be the buyer. First have her get a credit card from Sears or Macy's or something. Then 2 real credit cards. (you need 3 credit lines to qualify) Wait about 6 months. She can then get preapproved with any bank on a "stated income" kind of loan. If her credit is really good, then you can do stated income and asset. If it is only kind of good, you can do stated income but VERIFIED assets. That means she will need 6 months worth of (verified assets to cover) principle, interest, taxes, insurance, and minimum credit card payments already in a savings account. The other thing is to bring a relative in as a co-signer who also has good credit. Do not by any circumstance put yourself on the loan with a credit score that low, otherwise you won't get 100% financing and what you will be offered will be a terrible interest rate. I'd suggest calling the 3 credit reporting agencies and asking them how to fix your credit immediately. Then, you can begin getting credit yourself and that will raise your score. Good luck!

Go with the bank loan.Of course shop around.And Just remember never buy a house for the amount that they approve you for because you want to keep your investment once you get it, especially the way the job market is these days.She(whom) needs to get some credit.

Also with credit scores,to increase your credit score when you buy items on credit, say for instance you have $600.00

balance split the payments into 3 months of $200.00 payments because it actually increases your credit score more this way rather than paying the total amount due or the $600.00. Also, you can get a free credit report for that matter.

Best to Luck to you and yours.

Also a home buyers agent can help you decide about the financing or perhaps a broker.

The only way to know where you will get the best rate is to call around and ask different companies. Call at least two brokers, at least two bankers (the large mortgage companies that are household names), and at least one bank and one credit union. Pull your credit score at http://www.mifico.com/ (most other score sites are fake) and tell the score to everyone you call for information, but don't let them pull your credit. You can also check to see who is offering the best rates in your area at http://www.bankrate.com./

Let everyone know you are shopping around and you'll find you get better offers. Brokers get paid more if you lock at a higher rate (this is called yield spread), but they get paid nothing if you go elsewhere for a loan. If a Broker thinks you're trusting him and not checking elsewhere, you'll likely get hosed. On the other hand, if it's a choice between earning less or earning nothing, the Broker will go with a lower yield spread and offer you a competitive rate.

Be sure to ask about CRA loans (your originators will know what this means) and MyCommunityMortgage and similar products. (Again, your originator will know what this is.) These programs help people in our income bracket get into homes a very good rates, even without perfect credit.

I will recommend Faircent to all those who are in need of money.

I'm probably going to be in the minority with this answer but I think it's important you hear this from someone:

Do you REALLY have to buy a home RIGHT NOW?

Hear me out on this- let's say you qualified for a conventional mortgage, 100% financing (unless you have about $14000 for a down payment) on a $140,000 home would give you a 30 year payment of about $950/month before your taxes and insurance, which would conservatively be about $120/month depending on what part of the country you live in- this puts your total monthly payment (known in the "biz" as your P.I.T.I payment= Principle, Interest, Taxes and Insurance) at around $1070/month.

If I'm comming across as negative I apologize but in the last few years I have seen so many people in your situation get in over their heads and I just hate to see that happen. Wait for your girlfriend (wife?) to establish her credit and clean up your own credit profile (one way or another you are responsible for that debt, it's possible they'll settle with you but just get rid of it). If everything goes well over the next 12-18 months between you and your girl and you've managed to save up a healthy down payment (aim for at least 5% of the purchase price) then you'll be in great shape to buy a home.

I hope this helps and wish you the best.