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Dayze
05-09-2018, 09:58 AM
We're in the beginning stages of moving in the next few months, and are probably ready to start the whole pre-approval process etc.

it's been many moons since I've done it. Is there any rhyme or reason as to who someone should apply with? Is it just a total crapshoot?
I'm looking for options that don't require 20% down if that's even possible these days?

Anyone have any suggestions or recommendations for a mortgage person?

ptlyon
05-09-2018, 09:59 AM
Mortgage on a trailer?

Renegade
05-09-2018, 10:00 AM
We're in the beginning stages of moving in the next few months, and are probably ready to start the whole pre-approval process etc.

it's been many moons since I've done it. Is there any rhyme or reason as to who someone should apply with? Is it just a total crapshoot?
I'm looking for options that don't require 20% down if that's even possible these days?

Anyone have any suggestions or recommendations for a mortgage person?

Good luck on that. I am trying to build and it is amazing how many hoops I have to jump through. 20% down on land and another 20% down on estimated building cost.

loochy
05-09-2018, 10:01 AM
I'm looking for options that don't require 20% down if that's even possible these days?


Sure, you just have to pay PMI (ie waste more money on nothing)
Posted via Mobile Device

MIAdragon
05-09-2018, 10:03 AM
Going to go with a VA loan?

BlackHelicopters
05-09-2018, 10:08 AM
Good luck finding a good rate by paying 3.5% down. Just bought a new house. Last dealt with a mortgage in 2000. The game is much different. My 800+ credit rating impressed no bank.

BigBeauford
05-09-2018, 10:22 AM
There is a lender in KC doing 1% down and no PMI, but I can't recall who. If you are a vet, there is the VA loan. Basically do everything in your power to avoid PMI, because there is no worse waste of money than PMI.

mikeyis4dcats.
05-09-2018, 10:22 AM
Just got preapproved as we prepare to look for a new house. The simple quick process from 8 years ago is gone, we basically had to do a full application. You can get less than 20% down with PMI, but you might have trouble doing as low as you're talking about unless you qualify for FHA.

Contact your local bank and rate shop others. We use Cap Fed in Topeka as they have the lowest I've found.

Bewbies
05-09-2018, 10:25 AM
If you don't want to pay mortgage insurance ask for LPMI. You get a little bit higher interest rate but your payment is less each month.

I do a lot of these for folks with 10% down, that tends to be the magic number if you have a credit score above 740. If you don't, don't bother with LPMI.

FHA mortgage insurance never goes away so if you hate mortgage insurance stay away from that if possible.

Also, don't talk to a bank. Find a broker. Many options is better than one option, and most folks know wholesale is cheaper than retail. Today it should be that the broker is paid by the lender they send your loan to and not you. You don't have to pay 1% origination fees or anything like that. If they charge that they're offering you a lower than market rate you're buying down. Which means paying that sum in interest up front to the bank, which is dumb. Takes 8-10 years typically before you've recovered that up front payment via your reduced monthly payment.

Rates are the highest they've been in 5 years, so they don't look as good as they did last year, but they're not bad. Still in the mid 4's here in Atlanta for most folks.

If you have any other questions ask away. I'm only licensed in Georgia so I'm free help and can't sell you anything if you're in any other state. :)

Bewbies
05-09-2018, 10:28 AM
Good luck finding a good rare by paying 3.5% down. Just bought a new house. Last dealt with a mortgage in 2000. The game is much different. My 800+ credit rating impressed no bank.

FHA rates (3.5% down) are lower than conventional. If you were told otherwise you went to the wrong place for money.

Also, if you have an 800 score you should have been advised away from FHA cause the mortgage insurance is almost free on a credit score that high with a 5% or 10% down payment.

Dayze
05-09-2018, 10:28 AM
thanks gentlemen.

BlackHelicopters
05-09-2018, 10:31 AM
FHA rates (3.5% down) are lower than conventional. If you were told otherwise you went to the wrong place for money.

Also, if you have an 800 score you should have been advised away from FHA cause the mortgage insurance is almost free on a credit score that high with a 5% or 10% down payment.


I paid 20% down. Got rate at 3.85%. Good?

KCCHIEFS27
05-09-2018, 10:32 AM
In the process of purchasing our first home and man, has it been a wild ride. The negotiations have been absurd for us due to it being a seller's dream. We offered (actually, my wife REALLY wanted a house) 12K over and still didn't get the home (thank god). Now, we had an offer accepted, but the damn inspection and appraisal make my wife want to vomit if things turn sour. Here's to living it up in 2018 when the economy is boomin'!!

mikeyis4dcats.
05-09-2018, 10:32 AM
If you don't want to pay mortgage insurance ask for LPMI. You get a little bit higher interest rate but your payment is less each month.

I do a lot of these for folks with 10% down, that tends to be the magic number if you have a credit score above 740. If you don't, don't bother with LPMI.

FHA mortgage insurance never goes away so if you hate mortgage insurance stay away from that if possible.

Also, don't talk to a bank. Find a broker. Many options is better than one option, and most folks know wholesale is cheaper than retail. Today it should be that the broker is paid by the lender they send your loan to and not you. You don't have to pay 1% origination fees or anything like that. If they charge that they're offering you a lower than market rate you're buying down. Which means paying that sum in interest up front to the bank, which is dumb. Takes 8-10 years typically before you've recovered that up front payment via your reduced monthly payment.

Rates are the highest they've been in 5 years, so they don't look as good as they did last year, but they're not bad. Still in the mid 4's here in Atlanta for most folks.

If you have any other questions ask away. I'm only licensed in Georgia so I'm free help and can't sell you anything if you're in any other state. :)

just curious, whats your rate as a broker for a 850 score, 240k loan, 15yr, over 20% down

Red Beans
05-09-2018, 10:32 AM
If your credit is good, you shouldn't have to pay PMI at all, regardless of money down. Quciken Loans cold called me to see about switching our mortgage and my credit was good enough they waived PMI. If your credit is in the low to mid 700s, don't settle for paying PMI.

Dayze
05-09-2018, 10:36 AM
I think my score is 748 or 758. something like that. I just looked at it a day or so ago.

mikeyis4dcats.
05-09-2018, 10:38 AM
If your credit is good, you shouldn't have to pay PMI at all, regardless of money down. Quciken Loans cold called me to see about switching our mortgage and my credit was good enough they waived PMI. If your credit is in the low to mid 700s, don't settle for paying PMI.

LOL, I just ran a Quicken Loan and the rate is .375% high, and thats with paying 1.25pts on a 15yr. Run far away dude.

BryanBusby
05-09-2018, 10:40 AM
PMI is something you can avoid and honestly, I'd still try to put down as little as possible regardless of paying PMI or not. Only rubes still follow the old conventional wisdom.

BigBeauford
05-09-2018, 10:48 AM
PMI is something you can avoid and honestly, I'd still try to put down as little as possible regardless of paying PMI or not. Only rubes still follow the old conventional wisdom.

Especially with homes at their peak value level. Imagine tying up tens of thousands into your home, and something causes the value to drop( like Sprint campus being made redundant after the T-mobile merger).

Chargem
05-09-2018, 10:53 AM
Especially with homes at their peak value level. Imagine tying up tens of thousands into your home, and something causes the value to drop( like Sprint campus being made redundant after the T-mobile merger).

Why does it matter how much you put down if the value were to drop?

Dayze
05-09-2018, 11:17 AM
any of the local advertisers on local radio worth inquiring with? Or are they all full of it?

BigBeauford
05-09-2018, 11:33 AM
Why does it matter how much you put down if the value were to drop?

Because that huge sum of liquid assets you could have invested into something else is tied into an asset that depreciated.

BWillie
05-09-2018, 11:42 AM
We're in the beginning stages of moving in the next few months, and are probably ready to start the whole pre-approval process etc.

it's been many moons since I've done it. Is there any rhyme or reason as to who someone should apply with? Is it just a total crapshoot?
I'm looking for options that don't require 20% down if that's even possible these days?

Anyone have any suggestions or recommendations for a mortgage person?

It's such a pain in the ass. They have to verify x, y and z. I tried to just tell them I'd provide screen shots of my bank account, my bitcoin, investments, or just bring them a duffle bag full of money and they wouldn't accept it. They had to verify income to loss ratio, your recent taxes, how much debt you have. Dumb. They barely gave me a loan on my last house even though I was like I can put down 50% on it.

3 years ago, I have virtually perfect credit and I was able to get 3.25% interest rate on a 15 year. They had variables rates at like 2.5%. I know I Know those are taboo, though.

BryanBusby
05-09-2018, 11:51 AM
Whoever handled your loan sucks ass if they couldn't easily close with that much down.

Only other big piece of advice is before you even begin to lool, extensively look hard for a good realtor and mortgage broker.

A good mortgage broker will save you money (even after his commission) and a lot of headaches. A good realtor will make the process go a lot faster.

Don't be afraid to fire either if you aren't satisfied with how they are working. It's not a bloodpact with them.

I fired 2 realtors the last time I searched.

Ming the Merciless
05-09-2018, 12:03 PM
We're in the beginning stages of moving in the next few months, and are probably ready to start the whole pre-approval process etc.

it's been many moons since I've done it. Is there any rhyme or reason as to who someone should apply with? Is it just a total crapshoot?
I'm looking for options that don't require 20% down if that's even possible these days?

Anyone have any suggestions or recommendations for a mortgage person?

There are a couple of issues here. I did not read the thread so hopefully its not a repeat:

1) When youre making offers, you need your mortage person to have a good working `relationship with your agent. So asking your agent for recommendations is a good start.

2) my goal is ..to find a property and be inside to look and have an offer in 24 hours. This requires a letter, from the lender individual to THAT property with the rate info, down payment etc...so it is NECESSARY the lender be able to quickly generate this letter as needed. So you can see again why #1 is important. If your waiting a few days for these things to happen, you will lose out.

3) some lenders are pretty shady in terms of

a) making it clear what their fees are
b) making it clear what the rate and points are etc
c) changing the deal after you get an accepted offer when you were going by what they told you verbally because 'rates changed' etc


so, you want a lender who is willing to CLEARLY give you IN WRITING all of the various fees (and also describe 3rd party fees) so that you can easily compare two or three lenders to see what the best deal is.


4) you want a lender who can actually close a deal within the time frame under the contract so that when you remove lending contingencies, you wont have to stress that they cant get it done...IOW you want someone who can execute the loan quickly...and fund it quickly.


If you dont have these things...youll end up losing out on a property , especially if the market is tight ..or you may end up going 'out of contract' if they screw up and cannot fund the loan in time.

PM me if you have any questions





From my experience (currently have multiple mortgages, bought and sold many properties) you want to get their quote in writing.

edit:

yes, less than 20% down is possible, especially if youre going to be living there.....so asking them up front what special programs they have experience with, for less than 20% down is a way to find a lender who is right for you. you might have to pay PMI, or there may be a special program to avoid PMI......

Ming the Merciless
05-09-2018, 12:08 PM
One place you can try, is "cashcall"

it sounds shady but I have done two mortgages with them and it is very easy and painless.....with decent rates:

https://www.cashcallmortgage.com/

(mine were both re-fi's so, im not sure how they are for purchases...)

Ming the Merciless
05-09-2018, 12:11 PM
Also, if you are in a credit union, you should check there 1st ...as credit unions tend to be pretty great for mortgages...

BryanBusby
05-09-2018, 12:14 PM
1) When youre making offers, you need your mortage person to have a good working `relationship with your agent. So asking your agent for recommendations is a good start.

I would do this in the opposite order. Find a broker than have them suggest you a list of realtors they work well with, and pick pick the best option from that group.

I've noticed that at least some realty companies have started loan writing and they will push customers to borrow with them.

I got my broker refer from family and tested his availability by messaging him stupid questions at odd hours. He replied quickly and was quick at pushing the paperwork through.

Bewbies
05-09-2018, 12:20 PM
I paid 20% down. Got rate at 3.85%. Good?

Looks like it. Better than people are getting today.

Hard to know without knowing your credit score, loan amount and location. :)

Bewbies
05-09-2018, 12:21 PM
just curious, whats your rate as a broker for a 850 score, 240k loan, 15yr, over 20% down

The vary by state, but one would think that'd be really close to 4. Maybe a little under, maybe a little over.

Bewbies
05-09-2018, 12:23 PM
If your credit is good, you shouldn't have to pay PMI at all, regardless of money down. Quciken Loans cold called me to see about switching our mortgage and my credit was good enough they waived PMI. If your credit is in the low to mid 700s, don't settle for paying PMI.

You pay PMI, it's just they pay it from the premium paid to them by you accepting a higher rate. It's called LPMI. And Quicken is the cheapest in the marketplace on that if you've got a high score. (and by Quicken I'm talking their wholesale window we work in, not the retail window)

Bewbies
05-09-2018, 12:24 PM
any of the local advertisers on local radio worth inquiring with? Or are they all full of it?

Talk to real estate agents you trust. They'll have preferred lenders who do a great job. Best place to ask for a referral for a mortgage.

mikeyis4dcats.
05-09-2018, 12:26 PM
The vary by state, but one would think that'd be really close to 4. Maybe a little under, maybe a little over.

Cap Fed just raised on Monday to 3.875% so I locked.

Bewbies
05-09-2018, 12:27 PM
Also, if you are in a credit union, you should check there 1st ...as credit unions tend to be pretty great for mortgages...

This is true if the note is small (under $100k) or if they're running specials on huge $453,100+ loans.

In between those numbers brokers kick credit unions ass all over town. Stupid the way the gov't has setup the rules.

Bewbies
05-09-2018, 12:27 PM
Cap Fed just raised on Monday to 3.875% so I locked.

Nice!

I don't know what Cap Fed is, but that's a good rate.

mikeyis4dcats.
05-09-2018, 12:32 PM
Nice!

I don't know what Cap Fed is, but that's a good rate.

local bank. It is a good rate, but coming from my current 3.0% 15 yr it sucks!

FlaChief58
05-09-2018, 12:38 PM
I just got a VA loan. No money down, seller paid all closing costs, 3.62%
We went through Navy federal

Bewbies
05-09-2018, 12:39 PM
local bank. It is a good rate, but coming from my current 3.0% 15 yr it sucks!

I had people turning down 3.375% on a 30 year fixed not all that long ago cause they figured rates would hit 3.250%. They didn't.

A healthy mortgage market has 30 year rates between 6.75%-7.25% so we're still a long way off of what rates should be when everything is as it should be.

And honestly, there isn't a person alive who thinks once rates get that high they're going to stop there...

Ming the Merciless
05-09-2018, 12:41 PM
This is true if the note is small (under $100k) or if they're running specials on huge $453,100+ loans.


theres nothing less than 500k here...i think our median price is like 700k now

hehehe

i guess different markets

here, i dont even think you CAN get a mortgage less than 100k

https://www.zillow.com/homes/95472_rb/

Bewbies
05-09-2018, 01:23 PM
theres nothing less than 500k here...i think our median price is like 700k now

hehehe

i guess different markets

here, i dont even think you CAN get a mortgage less than 100k

https://www.zillow.com/homes/95472_rb/

I don't envy you, but to be honest Atlanta is out of control at this point too. Houses that were selling for $300k 3-4 years ago are $750k now. It's stupid.

MahiMike
05-09-2018, 02:16 PM
I just got a VA loan. No money down, seller paid all closing costs, 3.62%
We went through Navy federal

Best benefit there is for veterans.

raybec 4
05-09-2018, 02:21 PM
I used my VA loan to start my rental income business. As long as you pay them off they'll keep loaning you money. It's going a long way toward my hopeful early retirement.

Bewbies
05-09-2018, 02:37 PM
I used my VA loan to start my rental income business. As long as you pay them off they'll keep loaning you money. It's going a long way toward my hopeful early retirement.

This is really smart.

I have people asking me all the time how to get into the real estate investment business. And I give them the same answer none of them want to hear.

Buy a house with 5% down. Live there a year or two. Convert to rental and buy another house with 5% down. Live there a year or two, convert to rental and buy another house with 5% down. Wash rinse repeat. It doesn't get hard on the get a mortgage front until you've got 4, mortgage number 5 you have to put 20% down and have 6 months reserves for all payments. You can do that up to 10 and then you've got to find a new source of funding.

If you can buy each home and it will cashflow with a 15 year note you'll be fucking rich in 25 years. But nobody likes to get rich slowly.

Stewie
05-09-2018, 02:39 PM
any of the local advertisers on local radio worth inquiring with? Or are they all full of it?

James B. Nutter has been great for local buyers from what I've heard. I have no experience with them. I have friends on the KS side with mortgages and they're very happy. No BS from what I've heard. That's all I got.

Chieficus
05-09-2018, 02:44 PM
My wife and I went through quicken. I'd had no debt for over a decade, thus no score. We paid off her loans about the time we started the home process, and they said with her score we could do almost anything. We're in a slow market area so it took us a while to find something. We kept asking along the way if everything was good with having no open credit and they kept telling us yes. Then on what was supposed to be our closing date they decided to deny us for insufficient credit. They did at least refund the non refundable fee after I griped far enough up the chain.

We then tried Churchill, which has a KC branch and they got us from application to owning our home in 20 days on an FHA with no credit score. The rates weren't as good as quicken initially told us, but given how it went south there, they weren't bad (they also were a little better rate then another KC company that I can't remember the name of).

BWillie
05-09-2018, 04:26 PM
I went to A1 mortgage. They were alright. No PMI, not too bad closing costs. 3.25%, 15 year. 20% down.

MTG#10
05-09-2018, 04:42 PM
Im closing on a house next Wed. I'm putting 3% down, will have PMI for 10 years unless I refinance. I just went to the mortgage lender at my bank, process has been very smooth.

Chief Roundup
05-09-2018, 05:20 PM
I close on a house on the 24th. I did the modified FHA with 3.5% down for 15 years and locked in the interest rate at 4.25%. After 8 years the MIP, what they called it, will drop off the contract automatically as long as I have made all my payments as scheduled. My credit score is 788.