First Time Homebuyer - Lender Advice

[Dr.bannedman]

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.

found charters burner account

 

[rpcyclone2013]

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!

One thing you should consider. There is a deduction you can get on your Iowa return for a first time home purchase. You can deduct up to $4,100 on your Iowa tax return in 2019. I did this in 2018, and while there are some hoops to jump through, it's a great way to generate a tax deduction. You have to file certain forms with the Iowa Department of Revenue, and the money has to be in the bank account for 90 days before withdrawing it. If you have any questions on it, let me know.

https://tax.iowa.gov/first-time-homebuyers-savings-account

 

[cyowan]

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.

This.

 

[Clon3]

Check out Premier Lending Alliance

They primarily work with financial institutions by providing their services through smaller credit unions, however they do work with individuals as well. They were able to offer pretty much all mortgage products, gave a very fair estimate, and let me know which benefits I could qualify for throughout the process.

My situation changed and I didn't end up purchasing a home however for what it is worth so I didn't complete the entire process.

https://premierlendingalliance.com/

 

[CascadeClone]

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.

15 year loan FTW. If there is any way you can swing it (and buying a bit less house is one way) the 15 year loan saves SO MUCH in interest vs 30 year, it's crazy. Highly recommend!

 

[BCClone]

15 year loan FTW. If there is any way you can swing it (and buying a bit less house is one way) the 15 year loan saves SO MUCH in interest vs 30 year, it's crazy. Highly recommend!

The other thing is repairs. When building or buying new, many people don’t understand that at 20 years, there are some major repairs coming. Roof, flooring, furnace, AC and other things are basically shot.

 

[ArgentCy]

Compare closing costs / points in those interest rates as well because they can make a difference. Also I would point towards smaller banks / credit unions as they can still make some decisions and aren't run by policies and procedures.

 

[BCClone]

Compare closing costs / points in those interest rates as well because they can make a difference. Also I would point towards smaller banks / credit unions as they can still make some decisions and aren't run by policies and procedures.

not as much on house loans if you want a low rate fixed rate loan. They always get sold so they basically just do the Fannie Mae, Freddie Mac shuffle.

 

[SpokaneCY]

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.

We've had luck with both XXXXXXXX quickenloans.com and Bankrate.com (they are aggregators of lenders). Problem is it's hard to be a "looky-lou" as they want to contact you to get paperwork going. But there can be some really attractive rates offered...

 

[CloneSt8]

Since this will most likely be your largest financial investment, do yourself a favor and hire a lawyer to represent your interests. Remember that by contract the sellers real estate agent represents the sellers. And your real estate agent is paid for by the sellers so they too represent the sellers by contract.

 

[ricochet]

15 year loan FTW. If there is any way you can swing it (and buying a bit less house is one way) the 15 year loan saves SO MUCH in interest vs 30 year, it's crazy. Highly recommend!

I don't know how common they are but we did a 20 year loan which worked out better for us than a 15.