First Time House Buyer Question

[kcjak]

I'm going to take the plunge and buy a house this year.  I'm just starting the process, spoke with a realtor acquaintance and began the initial looking around at places.  I need to get pre-qualified/pre-approved and wondering if anyone has any advice on where to go for the best rates.  I've been researching and gone to a first-time home buyer class, but the financial lingo might as well be Chinese for me.  Any adivce would be appreciated.

Also, has anyone worked with the Missouri Housing Development Commission (MHDC) and their Tax Credit Advance Loan Program?

[dangerboy]

I have used Plaza Mortgage twice.  They are owned by the same company as Reece and Nichols and are co-located in most R&N offices, so they are very convenient.  I found their rates to be very competitive with the mortgage brokers, and much less shady.  Plaza Mortgage uses Wells Fargo bank for the actual loan, and generally Wells Fargo will hold onto the loan instead of selling to a unknown servicing company.

[KCKev]

I'm also a first time home buyer myself and I went with my bank (wells Fargo) as they have an Idea of my spending habits and pre-approved me the day I talked to them. Seems they didn't issue bad loans and are willing to loan in these unstable times.
I was hoping they had houses on their books but they did not.

I'm interested in a 120,000 house going for 76,000 currently.
FHA rates are below 6% and with the 10% tax break on cost of home, it was imposible to keep renting for me.

[PumpkinStalker]

Check with your employer too...some (like mine ) offer breaks and deals if you go through certain companies for your loan.

[aknowledgeableperson]

Whoever you bank with check with them first.  If unsuccessful then work with the mortage company associated with your realtor (however, watch out for broker fees).  James B. Nutter is another choice.

Going through the company associated with your realtor should give you an insight to any first-time home buyers programs, or any other helpful programs out there.

[lock+load]

I used Valley View Bank for my mortgage.  They sold it right away, but rates were very competitive (usually 1/8-1/4% lower than Plaza Mortgage was throughout our shopping period).  Fees were very competitive as well.

What part of town are you looking in?

[kcjak]

Thanks for the info.

I'm looking around midtown - 31st to Gregory, State Line to Troost generally.  Don't mind a fixer-upper, but not too intensive.  Live off of 39th/Mercier now and would prefer to stay in the area, but just depends whether we find anything.  Hard to pass up that federal tax credit!

[dangerboy]

Thanks for the info.

I'm looking around midtown - 31st to Gregory, State Line to Troost generally.  Don't mind a fixer-upper, but not too intensive.  Live off of 39th/Mercier now and would prefer to stay in the area, but just depends whether we find anything.  Hard to pass up that federal tax credit!

There are some good deals in Volker right now, include some in the starter price range.  Since you are looking in Midtown I cannot stress enough the importance of a first-timer using a buyer's agent who is familiar with urban neighborhoods.  I have worked with Ruth Ann in Kathleen Brock's office and was very happy.  http://kathleenbrock.net

[LindseyLohan]

I would get a good faith estimate from a couple places that are recommended. I got screwed at the last minute by my broker...

[bahua]

Is it possible to deal locally for a mortgage? I got my mortgage through Solutions Bank, and after all the interviewing and approvals and such, I found out after they agreed to finance me that they wouldn't be putting up any money, but would just be handing me off to ABN Amro in Chicago, which then got bought by Citibank.

[LenexatoKCMO]

Is it possible to deal locally for a mortgage? I got my mortgage through Solutions Bank, and after all the interviewing and approvals and such, I found out after they agreed to finance me that they wouldn't be putting up any money, but would just be handing me off to ABN Amro in Chicago, which then got bought by Citibank.

UMB, Commerce, Cap Fed might all be inclined to hold it I suspect. 

[dangerboy]

You have to ask if the lender will keep the mortgage or sell it. And you have to press them to get a firm answer.  A lot of the local operations are brokers that deal with many out of town banks that freely buy and sell mortgages.  You could try a locally-owned bank like UMB or Midwest, but again you have find a loan officer willing to give you a straight answer about whether or not they resell.

Even though Wells Fargo isn't locally-owned, the local loan officers have a lot of discretion and WF is very likely to hang onto your loan.

[lock+load]

Cap Fed holds their loans.

[grovester]

we got capfed, refinanced once, bought down our interest rate once, then found out we had been sold.

[lock+load]

we got capfed, refinanced once, bought down our interest rate once, then found out we had been sold.

well there you go.  i guess you just never know what is going to happen to a loan. 

[grovester]

yeah, we were surprised because we had heard the same thing.  Can't say it's been a problem though.  It's still managed through capfed.  Just can't do the "buy down" thing.  Not that that's even possible anymore.

[studentper]

my first mortgage was through bank of america, and they kept it the entire time.  For first time homebuyers, you might want to see if ACORN (the activists, not the mortgage brokers in Kansas) still have a first time homebuyers program.  When I bought my first house, BOA gave 1 percent of their regular rate and only 5 percent down required for persons who completed the ACORN class.  I think ACORN's office is still at 39th and Main.

[bahua]

yeah, we were surprised because we had heard the same thing.  Can't say it's been a problem though.  It's still managed through capfed.  Just can't do the "buy down" thing.  Not that that's even possible anymore.

Buy down? Do you mean paying down your loan?

[im2kull]

Sorry to jack the thread, but question for you guys...

A first time homebuyer, can you get a mortage in two peoples names...kinda like co-signing I suppose...but with anyone and not just a domestic partner/spouse?

[dangerboy]

Sorry to jack the thread, but question for you guys...

A first time homebuyer, can you get a mortage in two peoples names...kinda like co-signing I suppose...but with anyone and not just a domestic partner/spouse?

yes