First time homebuyer and scared

[Lori]

Frankly, purchasing a home and finding just the right loan has been very overwhelming. Being single and not having anyone to fall back on, makes me even more cautious and worried. I've already been approved for a loan and my credit score is 781. What worries me is that when it comes time to sign the papers at closing, the monthly payment won't be right or there will be more closing costs involved than what was originally thought. How often does this happen and is there anyway that I can cover myself? Also, once the house is on my land, and I go to close the loan and if it is not right for me, I lose my land. Now, this is very very scary. This land was a gift from my grandmother.

[Danny]

I'm not an expert here, but this is my 2 cents. Get it ALL in writing before you sign anything--the down payment amount, the interest rate, any setup fees. Don't be intimidated. If necessary, talk to an attorney about your situation and get their advice, the fee may be cheap in the long run. I wish you the best of luck.

[Ron]

Lori,

Having worked in the mobile home industry for a MH wholesale supplier and also a previously licensed RE salesperson in NC, buying any home, stick built or manufactured, is a scary experience. Escpecially the first home. Dannys advice about everything in writing is absolutely sound. Also the hiring of a lawyer with RE background would be well worth the money. I would not close without a lawyer, since you are doing this on your own and have your land at risk.

Hopefully, you have included in the land/home package, the cost of a well, septic, grading, and driveway construction. Depending on the land, state and county permit requirements, this can add $10,000 to the total package. There is also the costs of HVAC install, Plumbers, and Electricians to be taken into account. (assume you have already included these costs.)

Check out how long the MH sales company has been in business. If the company has not been in business for at least five years, I would find a dealer who has been in the business that long or longer. Some MH sales outlets are going bankrupt leaving the home owner owing sub-contractors for set up, foundation work, etc. when these MH companies have already charged you for these costs in the original deal. Since they go belly up, the subs are not paid and they (the subs) file mechanic's liens against the home to get their money. The buyer then winds up paying for these services twice.

It is best, when obtaining a MH loan, to have a permanent foundation, if you can afford it. This makes the home a part of the land and it becomes Real Property, much like a stick built. If you chose skirting only, then your loan is on the MH only and the package is not considered Real Property. You will pay one to two percentage points more for the loan over the term of the mortgage. So will a future buyer when you go to sell. The home will not necessarily hold its value as well, either.

Hope this helps.

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