demitchell19…, Home Buyer in Philadelphia, PA

What if I am a first time Buyer with fair credit but a lump sum of money for a downpayment. What else is needed?

Asked by demitchell1963, Philadelphia, PA Sun Apr 29, 2012

Help the community by answering this question:


OK Demitchell,
You need Patience, Good taste, Lots of time to look for a home in your price range and location.

And experienced Realtors that will cover your assets…….. All the way through the home purchase process with understanding explanations for you as a first time Buyer.

Can we confidentially talk?

All the Best, John + Sheri RE/MAX 215-757-2889
0 votes Thank Flag Link Thu Oct 4, 2012
Please call me at 215-327-8104 so we can discus this.
Kathy Hanigan
0 votes Thank Flag Link Wed Oct 3, 2012
Please call me at 215-327-8104 so we can discuss this.
Kathy Hanigan
0 votes Thank Flag Link Wed Oct 3, 2012

You need to be able to show the ability to RE-PAY the loan and be under a 55% Debt To Income ratio.

You don't need a 620 score with a good down payment.

0 votes Thank Flag Link Mon Oct 1, 2012
You should call a lender or mortgage broker and see if there are any programs for you. You have not mentioned your credit score. A real estate agent may find you a property with owner financing. There are sellers who will provide financing and then you can establish credit and refinance with a bank after a couple of years. But make sure you hire an attorney to read the documents .Be careful of scams..
0 votes Thank Flag Link Mon Oct 1, 2012
If you do qualify for financing additional expenses will include closing cost (lender fees) and downpayment. Your credit will affect the interest rate you may be offered which affects your monthly payment, and financing any fees in to your mortgage loan may yield a higher than average mortgage payment. At the end of fhe day, you will need to decide if buying makes sense in comparison to other options like renting for the time being. I would suggest you call various banks and find out what your options are. Should you wait awhile longer to increase your credit score and downpayment or jump in?

Homeownership can be beneficial if the investment makes sense to the product you are purchasing, or it can be a money pit treadmill. If the economy has taught us anything it would be to use your hard-earned dollars wisely in an effort to not repeat the cycle of debt hardship. Good luck to you!
0 votes Thank Flag Link Mon Apr 30, 2012
Please call me at 215-327-8104 so I can review settlement costs with you.
Kathy Hanigan, Broker
0 votes Thank Flag Link Mon Apr 30, 2012
Hello Demitchell,

In order to qualify for a mortgage you need a decent credit score. For most first time buyers that score should be 620 or higher. If you have a large downpayment your score can be lower and you still should be OK. Also you need to have sufficient income to qualify for the mortgage. In other words, all of you monthly debt and new mortgage payment (incl taxes and insurance)should be less than 45% of your gross income.
There are lots of other mortgage guidelines that may affect you so you should contact a good mortgage lender first. If your credit is weak stay away from credit unions and your local bank. They will waste your time and turn you down. You need someone to show you where you need to be and help you get there.

Give me a call. This is what I do best.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
NMLS ID 143960
0 votes Thank Flag Link Mon Apr 30, 2012
As a first time buyer, it is critical that you find the right agent to walk you through the homebuying process step by step. A good realtor will have preferred lenders to refer you to as well as the knowledge and expertise it takes to carefully guide you. You have taken the first step in your decision to buy. Homes are abundant and prices are affordable again for first time buyers. You can also capitalize on the epic low lender rates if you act now. The next step is to find a good agent whom can help you with the pre-approval process. He or she can put you in touch with a lender who will be able to answer these questions upon careful review of your paticular financial situation. Homebuying should be exciting and fun so be sure to interview a few agents to find the right fit for you.
0 votes Thank Flag Link Sun Apr 29, 2012
What else is needed? Employment history, proof of income, and a GREAT Realtor such as myself. Seriously depending on your credit score you may need to put down @least 10% of the purchase price. Please feel free to email, call, text, carrier pigeon, smoke signal me
Carolyn Mosley
Re/Max Affiliates
267 971-9373 cell
215 335-6900 office
0 votes Thank Flag Link Sun Apr 29, 2012
OK Demitchel,

We should be having a confidential conversation for your own protection and interest.

Feel free to call us at 215-757-2889

We've been doing this over 17 Years

All the Best John Curci RE/MAX Properties
0 votes Thank Flag Link Sun Apr 29, 2012
Hi, demitchell1963.

Congrats on your decision to buy a home.

Your best bet would be to contact your current bank (or a referred bank) about getting pre-qualified for a mortgage. The bank will take a verbal application, check your credit, and run it through their automated underwriting system.

This allows you to see what you do and do not qualify for when looking to buy a home. One step further would be to get pre-approved for a mortgage. This is where the bank does everything I previously mentioned, but they also check your actual sources (e.g. recent pay stubs, W-2s, asset statements, etc.).

If you need help, please let me know.


Timothy M. Garrity | REALTOR®
U S Spaces, Inc. | #RS314897
267-879-2716 - Call & Text
0 votes Thank Flag Link Sun Apr 29, 2012
Call me. I am ready our team can get you a home.
0 votes Thank Flag Link Sun Apr 29, 2012
There are a lot of things that go into a mortgage approal. Credit score is only one. They will also want to know your income and debt to income ratio. The fact that you have an amount of money set aside for a down payment will also help. The best thing you could do is talk to a good local mortgage lender. They will look at your entire situation and tell you whether you qualify for a mortgage today and if so how much. If not they will tell you exactly what you need to do to improve your situation so that you will be able to buy in the not so distant future. If you don't know a mortgage banker (not one of the big banks, but a small local company that specializes in writing mortgages), call a local realtor and ask to be referred. It sounds like you are well on your way to homeownership. A good lender will know for sure.
0 votes Thank Flag Link Sun Apr 29, 2012
Verification of employment (w-2's, tax return and current paystubs). I can assist you in your homebuying process.

Victor Rozier, CPA, MBA, Realtor
0 votes Thank Flag Link Sun Apr 29, 2012

Unless you are applying for a special program or a VA loan, you will need 3.5% down for an FHA loan or 5% down for a conventional mortgage loan. There will also be closing costs that you and your Realtor may be able to negotiate for the seller to pay in part or whole. Closing costs will vary but will likely be around $5000 on a$250k home. Closing costs are in addition to your down payment on the loan.

For most lenders, you will need a credit score of 620 or above. There are some execeptions to this but in the current lending climate, 620 or above is a very good benchmark. Finally, there is PMI or private mortgage insurance. This is required by some lenders when you put down less than 20% of the loan value on the mortgage. This can sometimes be avoided by getting two mortgage loans that together, prevent either lender from carrying an 80% or more portion of the total loan value. This is not uncommon. Otherwise, PMI will be added to the monthly payment and will be used to protect the lender in case of default.
0 votes Thank Flag Link Sun Apr 29, 2012
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