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Originally Posted by blktour
holy moly! how did I miss this? so question: so getting qualified with 0 down and having to pay the Private Mortgage Insurance, is this a bad thing? I dont recall if they added this on. I was pre-approved over the phone by my local bank. I think i will want to stop on by to see this all in writing.
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It was buried in the back >=)
Getting qualified with zero down and having to pay private mortgage insurance isn't inherantly bad, per se, but it would be better to not have to pay it, as it is an insurance that doesn't benefit you at all. It really depends on if you feel that it's worth the cost of PMI to own your own home.
Another option would be to put money down, of course (20% to avoid PMI) or get an 80/20 mortgage, where you have a first mortgage for 80% of the purchase price and a 2nd mortgage for the remaining 20% - still getting you in for no money down, but avoiding the cost of PMI.
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Originally Posted by onesnowyowl
One important thing I think you've left out of your guide is earnest money as part of the offer.
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Absolutely.
For what it's worth, earnest money is money that you basically put towards the purchase of the house at the time of the offer to prove to the current owners that you're serious about the offer.
A word of caution - if the deal goes south, you don't get you money back. Because of this, I would recommend putting down the least amount of earnest money possible - sometimes as little as $100.00.