Home Buying in Kansas City>Question Details

Kendra, Other/Just Looking in Rolling Meadows, Kan...

First time buyer ready to buy next 3 months...

Asked by Kendra, Rolling Meadows, Kansas City, MO Tue Jun 10, 2008

I have never owned a home and I try to educate myself on thewhole process due to the subprime mess. I have 5 years with my employer, medium to moderate salary ($50,000), average credit (690), but lack the down payment/closing costs. It would take me another 5-6 years to save up 5-10% and I am afraid the market might go back up and I will forever be priced out. I Any advice for me? I really want to move out of my tiny apartment so my child can have a yard.

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Angela, try and get rid of as much credit card debt as possible, its high interest debt. See if you can find a property where the owner will pay for your closing costs, this will save you on the closing costs. Try get a loan from your employer or borrow against your 401k or IRA. Its worth it to buy a home. Also see if you have any family members or relatives who would consider lending you the downpayment, pay them interest of say 7-10%, its better than the money sitting in their checking account. Set a buget for a home expenses and stick to it to save as much as possible. Also if you have a nice car and a big payment that can suck up your cash too.
1 vote Thank Flag Link Thu Jun 12, 2008
Also, please visit: http://www.naca.com. This loan program is 100% legit. I refer my buyers to this program here in Little Rock, AR all the time! I believe in the product they offer and it is amazing!

No closing costs
No down payment
No perfect credit
Lowest, fixed interest rate for 30 years
Use the closing costs you receive from the seller to buy down your interest rate
Take out extra money to remodel a home, buy new appliances and more by having it added to your loan

My sister purchased a home with the NACA program in December of 2007. I promise that they delivered everything they promised with their loan product. Their funding comes from Bank of America.
My sisters interest rate is 3.8% fixed for 30 years. My client last week closed on a home at 1.6% fixed!!! She did put additional money down.

Right now their interest rate is 5.6% (just checked for you) - and everyone receives this rate regardless of their score. I also just checked to verify that it is offered in your state and it is in Kansas City and St. Louis, MO.

I am purchasing my next home with a NACA loan and I have excellent credit!

Promise me you will at least check in to it! It will be a blessing to you!

Homebuyer Advantages
1 vote Thank Flag Link Wed Jun 11, 2008
If you want to get educated on the process go to http://GetPrequalified.com... there are hundred of articles that you can look at to educate you on the process.
Web Reference: http://GetPrequalified.com
1 vote Thank Flag Link Tue Jun 10, 2008
Don't worry, they'll build more. Save your money.
1 vote Thank Flag Link Tue Jun 10, 2008
No Major Purchase of Any Kind

--Don’t Buy a Car, and apply it to any major purchase that would create debt of any kind. This includes furniture, appliances, electronic equipment, jewelry, vacations, expensive weddings…

--Don’t Move Money Around

When a lender reviews your loan package for approval, one of the things they are concerned about is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking accounts, savings accounts, money market funds, certificates of deposit, stock statements, mutual funds, and even your company 401K and retirement accounts.

If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them.

The mortgage underwriter (the person who actually approves your loan) will probably require a complete paper trail of all the withdrawals and deposits. You may be required to produce cancelled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.

Perhaps you become exasperated at your lender, but they are only doing their job correctly. To ensure quality control and eliminate potential fraud, it is a requirement on most loans to completely document the source of all funds. Moving your money around, even if you are consolidating your funds to make it "easier," could make it more difficult for the lender to properly document.

So leave your money where it is until you talk to a loan officer at http://www.openontheradio.com

PS, don’t change banks, either.

fore more first time buyer tips you can look HERE >>> http://www.davidvannoyjr.com/buyer-first-time.asp
0 votes Thank Flag Link Thu Jul 24, 2008
Here's an update regarding seller financed programs:
Daily Real Estate News | July 22, 2008
Congress Ready to Nix Seller-Financed Loans

Congress is expected to pass a housing package this week that
eliminates seller-financed mortgage programs.

Under these programs, nonprofit organizations finance the down
payment for buyers, then home sellers repay the organizations.
Millions of people have bought homes this way, but the Federal
Housing Administration says the foreclosure rate on these transactions
is four times higher than it is on its other transactions.

The Senate version of the housing bill banned seller financing;
the House version did not. Negotiators crafting a compromise bill
have agreed to follow the Senate’s position, which is also supported
by the Bush administration.

"No insurance company can sustain that amount of additional costs
year after year and still survive," Brian D. Montgomery, the FHA
commissioner, said in a recent speech.

But supporters of this kind of assistance say the system may have
its problems, but because it is vital to low- and middle-income buyers,
it should be fixed, not abandoned.

Source: Washington Post, Dina ElBoghdady (07/22/2008)
As interest rates on mortgages continue to rise and down payment assistance programs are being cut,
buying a home with no down payment will become more difficult; if not impossible.
My advice is to find a realtor to help you now; waiting to act may indeed leave you and your child out.
0 votes Thank Flag Link Wed Jul 23, 2008
The first thing that any home buyer should do is contact a Realtor who specializes in your local market. This is especially imperative for any first time home buyers. You will be pleasantly surprised how much easier your outlook on buying a home will be. A Realtor will be able to create a buyer plan that meets your particular needs along with setting you up with a reputable lender to find out what kind of payment is best for you. It is all small steps from there all the way to closing. Best wishes!
0 votes Thank Flag Link Tue Jul 22, 2008
You may want to do some research on http://GetPrequalified.com. There are tons of articles for first time home buyers on there.
Web Reference: http://GetPrequalified.com
0 votes Thank Flag Link Mon Jul 21, 2008
Your best bet is a credit union. You will get the best rate and lowest fees there than you will anywhere else. I know community America has a program that will alow seller contibutions of up to 6% including minumum down payment of 3%. That will leave another 3% for closing costs but, you shouldn't need all of that because their closing costs are pretty reasonable. Make sure your Agent knows you are using this type of financing ahead of time.
0 votes Thank Flag Link Mon Jul 21, 2008
Here is a list of participating lenders, in Kansas City, who offer grants, low interest loans and DAP:

If you feel apprehensive or intimidated when talking to mortgage lenders, bankers, and finance people, ask your realtor if s/he will go with you for support. (most will)

Take with you to the appointment:
Driver's License
2nd picture ID
SSN card
Passport & visa if not citizen of US
checking & savings account statements for last 6 months
Paycheck stubs for last 3 months
Copies of rent receipts, utility bills paid, insurance bills, credit card bills, auto loans, school loans
If you are liable for child support, this will need to be disclosed.
Many of the Downpayment Assistance Programs were changed, some cancelled, last Monday.

Talk to 3 of the mortgage lenders listed to see what one has in comparison to the other.
You may want to ask your realtor which ones s/he thinks might have the best offer for you.
Congratulations on making the leap from renter to homeowner!
0 votes Thank Flag Link Sat Jul 19, 2008
Please read this blogpost. Congress is considering taking the down payment assitance programs away from FHA. You can follow the links to take action and tell Congress what you think of that! Hurry.
0 votes Thank Flag Link Thu Jul 10, 2008
I have a house FSBO in this area, Fairway Hills (just a street over from Rolling Meadows). If you would like to check it out, go to:


You will find some sellers who are willing to negotiate closing closts and often first time buyers can get loans with little to no down payment. Good luck to you!!!
0 votes Thank Flag Link Wed Jul 9, 2008
By the way, I know that school district will probably be important to you so check out this great link via my website that gives you ALL the school info you could want.

0 votes Thank Flag Link Thu Jun 26, 2008
So, do you want 2 or 3 bedrooms? Missouri or Kansas? We can find a nice home with a yard for you & your child. Closing costs & downpayment assistance can be written into the contract. What school does your child presently attend?
0 votes Thank Flag Link Thu Jun 26, 2008
I have some really good ideas about a kid friendly home depending on the area you are interested in. If it is Overland Park or Lee's Summit, or even South Kansas City please let me know and I will shoot you a couple of thoughts with no strings. You can shoot me an email from my website. I would love to see you take advantage of the home owners opportunity right now. Talk to you soon....
0 votes Thank Flag Link Thu Jun 26, 2008
I have some really good ideas about a kid friendly home depending on the area you are interested in. If it is Overland Park or Lee's Summit, or even South Kansas City please let me know and I will shoot you a couple of thoughts with no strings. You can shoot me an email from my website. I would love to see you take advantage of the home owners opportunity right now. Talk to you soon....
0 votes Thank Flag Link Thu Jun 26, 2008
while you are getting rid of credit card debt, talk to a mortgage lender BEFORE you close any credit cards out. You can actually hurt yourself by losing credit by closing out lines of credit since they look at open lines of credit vs amount of debt
Web Reference: http://www.yourstlhome.com
0 votes Thank Flag Link Thu Jun 12, 2008
I agree with all the other realtors answers. And I would like to encourage you to sit down with professionals and take a look at your finances. Even if it turns out your not in a strong buying position now, they can advise you where to go from here. I have customers that are waiting 6 months or better to buy. But knowing their positioning makes the goal of homeownership that much more obtainable. Good Luck!
0 votes Thank Flag Link Thu Jun 12, 2008
Keep in mind that a good realtor will take the time to educate you as you move through the process. Probably 3/4 of what I do is educating my buyers and sellers
Web Reference: http://www.yourstlhome.com
0 votes Thank Flag Link Wed Jun 11, 2008
Right now some mortgage lenders are starting to charge more interest for lower credit scores. 690 used to be good; now many want 720 or better. That doesn't mean you can't buy a home now. With proof of 5 years of steady employment and your decent credit score, there will be a lender for you. There are a number of programs for which you may qualify. Some Dowmpayment Assistance Programs will be refunded the beginning of July so if you meet with a realtor and a mortgage lender now, you can probably be ready to purchase next month.
0 votes Thank Flag Link Wed Jun 11, 2008
Congratulations First Time Home Buyer!

Right now is a favorable time for home buyers. Interest rates are still low, sub-prime loans have been minimized, and sellers are motivated to sell so that they too can purchase a new home!

I specialize in working with first time home buyers. I advise you to first settle in your heart, mind and spirit that you deserve to own your own home. I often encourage my first time home buyers to increase their faith levels, prepare and educate themselves about the home buying process and then MOVE FORWARD!

People who are renters, are afraid to move forward and become homeowners because they listen to the media and other external noise. But, think for a moment...no matter if the market goes up or down "YOU DON'T BENEFIT EITHER WAY" because, you are renting without any return on your money.

If you purchase NOW, and get a good, fixed interest rate mortgage you will be SAFE regardless of what happens in the market. My advice is to make sure that you choose a home that you can comfortably afford with minimal repairs (something updated would be nice). Choose an area that is clean, safe, with good schools and the possibility for good re-sale value (should you decide to sell one day).

The key to being a smart and successful home buyer is to prepare (which you have) and educate yourself about the home buying process. You have good credit and should qualify for a good interest rate. There are so many programs that will help you with your down payment and/or closing costs. VISIT: FHA.com for (down payment grants) available.

Don't be afraid, and if you do become afraid..."Do It AFRAID." - Joyce Meyer

You can do it! I believe in you!

The only thing that is hindering you is fear, not the market. Noone can 100% predict what's going to happen with the market in the next 3 months. All you can do is make a good, wise decision based on the facts and good information that you have RIGHT NOW - things are favorable for you NOW. Live in the NOW and trust God's provision for you and your child's future.

I would love to hear from you or answer any additional questions that you might have. I have created an excellent first time home buyer website with tons of valuable "how to" information on the home buying process plus, motivation and inspiration for your home buying journey.

I wish you much success and blessings in your new home!

Move Forward,
Homebuyer Advantages
0 votes Thank Flag Link Wed Jun 11, 2008
OK, it is still possible to buy. You need to sit down with a good realtor and a good mortgage lender. You may be qualified for first time home buyer monies from the State, for grant programs from your local municipalities (based on where you are purchasing a home at), or special programs based on your career field and where you are purchasing a home. You may also qualify for programs such as Futures, Ameri Dream, Nehemiah, and other non-profit and not for profit grant programs that will assist you in purchasing a home. A good realtor and a good lender will know about the programs in your area that you will qualify for and will work together to help you find the ones that are right for you. Most of my first time home buyers do not have a down payment and are using the AmeriDream program and the State of Missouri first time home buyer programs but keep in mind that with the state program, if you do not stay in the home for a certain length of time, you will have to pay those monies back.
Web Reference: http://www.yourstlhome.com
0 votes Thank Flag Link Tue Jun 10, 2008
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