Questions about a FHA loan, Mortgages, and first time buyers?

I will be a first time home buyer, I am looking in NJ, now living in NY. I take home, after taxes about 8k a month, my wife also brings in a few thousand a month. We have fantastic credit and no outstanding bills except a few student loans. To find something in the area we want, we will have to spent about 700k or so. I have read that with a FHA loan you have to place down 3.5 % as compared to 20% with a regular mortgage. If you take out a FHA mortgage and place down the 3.5 % do you still have to pay PMI with a FHA ? Also, where should I go for a mortgage, I hear many terrible things about brokers, And, the last thing, what am I looking at in fees and closing costs for this range ?


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One Response to “Questions about a FHA loan, Mortgages, and first time buyers?”

  1. godged says:

    Unless you place 20% down, you are going to pay PMI.

    I would strongly suggest that you work with a local lender. I’d start with where you do your banking. Internet lenders have no vested interest in making sure you are satisfied or close on time because their business is not driven by referrals. In my very limited experience with internet lenders, it has never gone well. Local lenders rely on referrals for repeat business, and might run into you at a local store, so they want you to be pleased.

    When shopping for a lender, question for a GFE (excellent faith estimate) of closing costs. Of course you are going to want to know your interest rate, but lenders can vary by thousands of dollars in closing costs. Ignoring closing costs can be expensive.

    Speaking of closing costs, a figure to work from is 3% of sales price.

    Excellent luck on your buy.

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