Bond Money Still Available!?

According to a local lender, there is currently MHDC bond money available for first time buyers.

This did come as somewhat of a surprise, since there was a time last year that people were still holding on a waiting list for those funds. But for now, it seems, its available for use.

What is bond money you ask? It is money that the Missouri Housing and Development Commission (MHDC), a part of the Missouri state government receives in return for selling bonds in the bond market. MHDC then uses that money to fund mortgages for first time home buyers at a lower than market interest rate (cheaper payments, folks) or near market interest rates when providing assistance towards the FHA minimum downpayment of 3.5% (MHDC calls this the Cash Assistance Program).

The program has some income limits that apply, so it’s best to check on that before proceeding. We’re also not mortgage lenders, so before we go into too much detail, we’ll bring in a loan officer to explain it.

If you have more questions about MHDC bond money or you’re just ready to start considering your first home, check us out at www.springfieldfirsthome.com, email us at firsthomebuyers@remhob.com, or give us a call or text at 417.872.9222. 

Look for Lender Who Does It Right

Most homebuyers, but especially first-time buyers, start the home buying process of with a very important question: Where will I go for a home loan?

First-time buyers are usually at a disadvantage here, simply because they haven’t done this before and don’t know what to look for in a mortgage lender, and they don’t normally have a pre-existing relationship with a bank. This leads them, in most cases, to rely on a real estate agent for a referral to a lender.

Even with a referral or a list of lenders to contact, there are still some questions that need to be asked or things to look for on the part of the buyer in determining who is ultimately the right lender.

Getting it done

Since mortgage lenders only really get paid when a purchase closes, you’d think they were all interested in getting to the closing table as soon as possible. This, unfortunately, isn’t true of all lenders. Some buyers seemed trapped in some kind of “loan purgatory,” waiting for things to get done only to find out there are more things to be done when they thought things were getting wrapped up. A good lender can usually get a loan done in 30-45 days (even more difficult loans).

Communication

Along the same lines as getting things done correctly and on-time is the ability – no, call it willingness – on the part of the loan officer/lender to return calls and communicate clearly what is going on with a loan. When a lender speaks in broad terms like, “everything is going well” or “no problems,” its usually not a good sign. A buyer must know what is going on at all times, where they are in the process, and what the possible glitches could be in any step of that process before they happen.

Fees and rates

Its not just about the interest rate. While most lenders have fees associated with the loan, called closing costs, some have extraordinary fees that, when expressed as an interest rate as required by law (the APR), they might make your heart stop. So don’t just ask about interest rates when talking to lenders – talk about fees as well. Ask for a Good Faith Estimate of what a loan would cost and make sure this works for you. Even if sellers pay closing costs, the amount of these costs affects the ultimate cost to you.

For more information about home loans for first-time buyers, check out our website or email us at firsthomebuyers@remhob.com.