[MuddyREX]

Ho-kay.

Being that I have bought two homes and worked in the mortgage industry myself, I like to consider myself somewhat knowledgeable on this subject.

Blue4door is throwing out some great info. I agree with just about everything he said, but I wouldn't say to avoid going directly to a mortgage company. Like DolphinS4 said, do avoid mortgage brokers. They represent no actual mortgage company or bank. They'll say something like I'll get you a xx year loan at a x.xx% interest rate with no points, and once you are on board with them, they have to go find a bank to honor it.

I've heard horror stories about people showing up to a closing with a completely different mortgage to sign then they were originally offered. This can be especially bad when you are buying a home since you already have money invested into it by the time closing comes around and it is extremely hard to walk away from.

On the other hand, going directly to a mortgage company can sometimes allow you more flexibility with your loan. Where most banks are tied down as to what kinds of loans they can offer you because they have to adhere to certain government guidelines, some "sub-prime" lenders can do some pretty amazing things that regular banks can't.

All I'm saying is to shop around for a mortgage, and find the one that you are most comfortable with. Read the fine print, and if you don't understand it, take someone with you who does.

As for a downpayment? The less that you borrow in relation to the total value of the home will get you a lower interest rate on your mortgage. It works like a see-saw, interest rate goes down when the downpayment increases, and vice-versa.



Now, as for the other stuff that comes with buying a house, be prepared for a change. There will be more bills than you'll anticipate.

Here's what I'm writing checks for every month for the house:
Mortgage / taxes, phone service, cable, internet, trash removal, electric, water, sewer, alarm service, food, and I know I'm forgetting a lot. You may also have to deal with an association fee, and other fees depending on where you live.

The initial expense once you move in can be pretty high as well, since you'll most likely want to redecorate. The cabinets will be bare, so be prepared to spend a lot of money filling them. You'll also have to furnish the home, and that can get really freaking expensive. I worked in the furniture industry as well, so I know.

Don't forget that you have an expensive hobby called cars.

It all adds up, so be sure to think eveything out before you make your decision.

I'm tired of typing.