First Time Homebuyer - Lender Advice

[DreamyFred21]

My wife and I are moving back to Des Moines and are (hopefully) soon to be in the process of buying our first home. Both of us have been moved away since college, so we don’t really have any prior banking relationships in the area or ideas of places to start. Anyone have any recommendations from whom you’ve worked with or just general tips as we begin the mortgage process for the first time? Excited to be back home and be a Cyclone season ticket holder! TIA for your help!

 

[dirtyninety]

Good Luck. I hope you avoid PMI and get a good rate.

 

[chuckd4735]

I don't think lenders really matter. Most real estate agents will have a lender or two they do not their work with. Find a real estate agent you trust first and foremost.

 

[DeereClone]

Don’t buy anywhere close to the maximum that they will approve you for - the banks will let you get in way over your head. Try to keep house payment to about 25% of your take home pay.

Doesn’t matter where you get your loan through for the most part since a very high percentage of loans are sold on the secondary market.

Don’t spend all your cash on the down payment - moving, updating, painting, furniture changes, landscaping changes, interior decor, etc all cost money and all add up quickly when you move.

Best of luck, home ownership is a rewarding experience.

Edit: funding your escrow account for property taxes and insurance is a hidden expense as well that needs to be added to the list above.

 

[throwittoblythe]

Don’t buy anywhere close to the maximum that they will approve you for - the banks will let you get in way over your head. Try to keep house payment to about 25% of your take home pay.

Doesn’t matter where you get your loan through for the most part since a very high percentage of loans are sold on the secondary market.

Don’t spend all your cash on the down payment - moving, updating, painting, furniture changes, landscaping changes, interior decor, etc all cost money and all add up quickly when you move.

Best of luck, home ownership is a rewarding experience.

Edit: funding your escrow account for property taxes and insurance is a hidden expense as well that needs to be added to the list above.

Solid advice. And you are right about point #2. We went through a mortgage broker for our first home and ended up with someone called “Southwestern American Mortgage.” Even our broker said “don’t pay attention to the company we go with, your loan will get purchased by Wells Fargo anyway.” Sure enough, our loan got purchased before we ever even made our first payment.

 

[cmjh10]

Dont do it, its a trap

 

[CtownCyclone]

Agree with everyone who says don't buy for what the bank will lend you. They're fine with letting you get overextended.

 

[CycloneDaddy]

https://michelleyork.homeserviceslending.com/

Michelle will treat you well. I used her several times when she was at Wells Fargo and have refered people to her now that she is ar HSL.

Another option is to look at some Credit Unions to see what they are offering.

 

[BCClone]

Shop around a couple different places. Check rates from lenders that are recommended from different people.

 

[DreamyFred21]

Appreciate the advice thus far. I guess I figured rates would vary more from place to place and a few basis points on a loan of this size does matter which is why I was curious. Also, as background, we are planning on putting enough down to avoid PMI, are buying a house about 3x our combined gross salary, and are very fortunate to currently have no outstanding debts (just made last payment last week). Does customer service not really matter then since you agree to the loan terms one time and then don’t really have a relationship for there? Is there any benefit to me not just looking for the lowest possible rate I can find? I guess that’s my biggest question heading into this.

 

[BCClone]

Appreciate the advice thus far. I guess I figured rates would vary more from place to place and a few basis points on a loan of this size does matter which is why I was curious. Also, as background, we are planning on putting enough down to avoid PMI, are buying a house about 3x our combined gross salary, and are very fortunate to currently have no outstanding debts (just made last payment last week). Does customer service not really matter then since you agree to the loan terms one time and then don’t really have a relationship for there? Is there any benefit to me not just looking for the lowest possible rate I can find? I guess that’s my biggest question heading into this.

Customer service is basically worthless once the loan is intact and you make the payments.

 

[DreamyFred21]

If I’m really only looking for the lowest rate, is there a site out there that acts as a database and provides relatively accurate rates by lender if you provide an estimated credit score? NerdWallet had a few listed, but not a lot, and didn't see a ton of other options after a quick Google search. I would like to avoid submitting name, email, phone, and other information to 10 banks just to get quotes and have them blowing up my inbox and voicemail for the rest of time. Maybe that is the way it works, but I was hoping to steer clear of that if at all possible.

Edit: Also, I think we are buying FSBO and not working with a realtor, so don't have a built in relationship to a specific lender. And we will ensure a real estate attorney is used to help with the paperwork for the crowd that is going to come in here questioning not using an agent.

 

[ZB4CY]

Don’t buy anywhere close to the maximum that they will approve you for - the banks will let you get in way over your head. Try to keep house payment to about 25% of your take home pay.

Doesn’t matter where you get your loan through for the most part since a very high percentage of loans are sold on the secondary market.

Don’t spend all your cash on the down payment - moving, updating, painting, furniture changes, landscaping changes, interior decor, etc all cost money and all add up quickly when you move.

Best of luck, home ownership is a rewarding experience.

Edit: funding your escrow account for property taxes and insurance is a hidden expense as well that needs to be added to the list above.

08' is happening again.

 

[cyfan92]

Collins Credit Union usually had the best rate.

Green State Credit Union is #1 in the state for mortgage origination.

I used Charter House and Mark got me into a great house (more than we thought we'd get) for 10% below asking price.

Best of luck!

 

[SCyclone]

A couple things I might add - there are sources out there that can help with the down payment, depending on your income level. I don't have specifics, but a little nosing around with Google and you can find them.

Also, don't automatically discount using a 15-year loan rather than a 30. You might be surprised. Check on payment levels for both, typically the interest rates are better on the short term loan. If you can afford it, the 15 year mortgage is better.

 

[Farnsworth]

I agree that you should go with someone who your agent has a good relationship with. It really does come to price as others have mentioned it'a gonna get sold to another lender anyways.

 

[JP4CY]

I agree that you should go with someone who your agent has a good relationship with. It really does come to price as others have mentioned it'a gonna get sold to another lender anyways.

We had a loan from Community Choice CU that got sold the day of.

 

[rpcyclone2013]

The wife and I used Bankers Trust for the home we purchased in Nevada (Iowa, not the state) and had good luck. My wife knew the banker which helped things.

 

[cowgirl836]

Appreciate the advice thus far. I guess I figured rates would vary more from place to place and a few basis points on a loan of this size does matter which is why I was curious. Also, as background, we are planning on putting enough down to avoid PMI, are buying a house about 3x our combined gross salary, and are very fortunate to currently have no outstanding debts (just made last payment last week). Does customer service not really matter then since you agree to the loan terms one time and then don’t really have a relationship for there? Is there any benefit to me not just looking for the lowest possible rate I can find? I guess that’s my biggest question heading into this.

if you're just buying (vs. say, building), you're going to have minimal interaction with the bank......and if it's a smaller operation, they likely sell the loan pretty quickly anyway. So focus on rate.

 

[KcCyclone77]

Just bought a house in Waukee this summer, and was in the same boat. Ended up going through community choice credit union, they had about the lowest rate I could find, and went through Charter house for my buyer's agent. Smoothest process ever.