First time homebuyer - Am I getting the best deal and is there more to it?

My husband and I have been approved for 100% financing from a local bank. When I asked the loan officer what kind of loan it was he said inital fixed then variable and I said OH an ARM and he%26#039;s like no it%26#039;s kind of like a balloon. No prepay penalty, 20yr terms and no rate caps of any kind. My husband%26#039;s uncle has large business w/this bank %26amp; placed a CD of 20% for collateral so we don%26#039;t need PMI either.It%26#039;s fixed for 3 yrs/then variable and our rate quote was 7.129fxd. Our scores are 640 and 660 w/a recent 50pt hike due to paying off some cards. If the run it again it%26#039;ll be 660/690. There are awesome factors like only paying hzd ins 25% upfront and min. closing costs but ARM%26#039;s don%26#039;t have such a good rep. now and with no rate cap? I%26#039;ve heard ARM%26#039;s inital fixd rts are often super low to lure u and it gets worse later...but we have a high rate initially %26amp; then who knows. Our GFE said there migh tbe a prepay penalty and are we gonna be able to refi in 2 yrs? Hubbys mad I%26#039;m questNGit

First time homebuyer - Am I getting the best deal and is there more to it?rate my teacher

Balloon notes are normally something to stay away from. It should be spelled out just how much your payments will balloon in the years to come. ARMs are not bad, it%26#039;s kinda like gambling, hoping that the rates go down. Rates will probably go down for a few more months.

First time homebuyer - Am I getting the best deal and is there more to it? loan

Avoid that loan like the PLAGUE! It%26#039;s EXACTLY the kind of rip-off that caused the mortgage meltdown that is crashing the ecomomy.

Ask the lender for a WORST CASE SCENARIO payment schedule. Your payments could double, triple, or worse. %26quot;No rate caps%26quot; means that your 7% rate today could rocket to 20% or more when the lock expires.

Better yet, dump this sheister and find a reputable lender, not some rip-off artist of a broker like the one you%26#039;re dealing with!|||Bad terms, bad rate, bad deal!

While everyone likes to tell you to go to your local bank, your neighborhood bank does not do the volume of mortgages that the big companies do. There is no way they can compete.

I%26#039;m sure I%26#039;ll get thumbs down as I normally do, but the bottom line is that you need to get a broker, and you need to have them find you the program that fits your situation. Your local bank may have a handfull of options at best. You will save time and money by getting a broker. Get a licensed, reputable one and you will be fine.

Keep shopping.|||It seems that you may not have a full understanding of the program and how they%26#039;re structuring the deal. It smells like a Govt. loan...FHA. I assume the Fico of 640 is the primary wage earners score. 640 puts you into the subprime category, so 7%+ sounds about right. It sounds like the uncle is actually putting 20% down, this is why there is no PMI. It%26#039;s not required when you%26#039;re not exceeding 80% LTV. It sounds like it%26#039;s really only 80% financing, not 100%. 100% is pretty unlikely with a great credit score, so I don%26#039;t think it%26#039;s possible with a 640. No offense, just trying to give you the facts. With a 640 and your uncle%26#039;s Down Payment, this is probably as good as it gets. It doesn%26#039;t hurt to shop around though.|||Shop around, call and visit a couple of other LOCAL banks and lenders and have them provide you with a GFE. then you can compare and see if it%26#039;s a good deal or not.

Make sure to price out your loan with your LOCAL banks and mortgage brokers only.

A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can鈥檛 get to them within 1 hour don鈥檛 fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON%26#039;T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.

Remember Buddha%26#039;s advice:

%26quot;Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense.%26quot; You are the only %26quot;expert%26quot; you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is %26quot;selling%26quot; you something (its not advice, its advertising). Don%26#039;t buy %26quot;it.%26quot;|||Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing office%26lt;!--in the county in which you reside.If these offices don%26#039;t have the programs you are seeking they will be able to tell you what agency in their jurisdiction has them.

http://best-loans.awardspace.com/homebuy...

Once you have located the first time home buyers program and who operate it, that agency normally have a list of lenders, banks--%26gt;mortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.