Home Buying in Atlanta>Question Details

Rico Sauve, Home Buyer in Nashville, TN

A question about a First Mortgage

Asked by Rico Sauve, Nashville, TN Wed Mar 13, 2013

I have never purchased a house. I am looking to purchase a house in Nov/Dec 2013. I would like to know how soon should I be out to secure a loan approval with one of the many banks/mortgage companies.
Thank You

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14
Brandon,
I'm not trying to be argumentative here, rather just comply with Federal guidelines and provide the best information possible. It is a Federal crime for a lender to discourage a potential homebuyer from obtaining any type of credit for several reasons including credit. Of course that doesn't mean that everyone is approved, our job is to be consultants to an applicant on the status of their options and/or how to achieve their desired goals. We are not allowed to discourage someone from trying to obtain credit for any reason. Your previous post would violate this provision. I did not want Rico or any other potential homebuyer to read this blog and think they could not buy a home because they had less than a 680 score. In addition several programs are available for clients with credit scores below 680 that are as good or better than conventional programs available to those with excellent credit, USDA and VA are two that come immediately to mind.

Sincerely,

Chris Irvin
Brand Mortgage
NMLS # 75615/465546
678-251-7889
cirvin@brandmortgage.com
1 vote Thank Flag Link Thu Mar 14, 2013
Nor am I making any attempt to be argumentative. My post does not violate any federal guidelines because my post are not governed by these guidelines. Rico or anybody couldn't possibly read my blog and be lead to think that he could not purchase a home based on a 680 credit score. The blog simply does not imply that at all. Again, I said that if the score is below 680 it would be a good idea to improve your credit scores. BTW VA loans do not typically offer interest rates that are better than conventional loans. But this is not for me to go back and forth with you...it was simply an opportunity to offer advice. Thanks for your response.
Flag Thu Mar 14, 2013
To Everyone - I really really appreciate all your answers. I had not been online/active in my own post.. My brother was killed less than 4 hours after asking my questions. I will work to make my credit scores as high as possible before stepping towards lenders.
0 votes Thank Flag Link Thu Apr 4, 2013
Rico,
If you take a few minutes to read my post again you will notice that I did not say you could not get approved with a score less than 680. I said that if you do not have scores greater than 680 you should work on improving your credit scores. Sure you can get approved but getting approved with the the best interest rate should be your ultimate goal. Loan officers are in the business of getting potential buyers approved not necessarily helping you to get the best rates. Take care.
0 votes Thank Flag Link Thu Mar 14, 2013
As you have never purchased a home before, consider going to a homebuyer education workshop offered by a nonprofit housing counseling agency. They will go over the full homebuying process, including the timing. Also, you may be eligible for a variety of downpayment assistance programs, and they can review those with you. If you are buying in the City of Atlanta, the $15,000 NeighborhoodLIFT program is available. Please see the websites below for more info.
0 votes Thank Flag Link Thu Mar 14, 2013
Rico,
Having your credit pulled is really not that big of an issue unless you are at or near a threshold for approval or rate adjustment, which you won't know till your credit is pulled. If you pull your own credit it doesn't count as an inquiry and doesn't effect your score, however the bureaus will charge you to get your numerical score. I do not need your score to advise whether or not you would be approved but to give you the best info as to program, down payment, and approval amount the score is very helpful. BTW regardless of what your score is now if you are looking to buy a home consulting with a mortgage professional now can put you where you need to be by your target date. The advice of 740 or 680 scores as a minimum requirement is not accurate, if it was I'd be out of work :)!

Chris Irvin
Brand Mortgage
NMLS # 75615/465546
678-251-7889
cirvin@brandmortgage.com
0 votes Thank Flag Link Thu Mar 14, 2013
You received many great answers. I would sugget you contact a lender soon to make sure there are no problems with your credit or your type of income. A lender will guide you in the information you will need to provide when the time comes to buy that home.

If you begin now, you should have time to clear up any credit problems and get proof of pay off of any old credit.

I do FHA, VA, Conventional loans. We have more than one type of down payment assistance program for those meeting the income and credit requirements.

Fidelity Bank Mortgage also offers many renovation programs, if the home you chose needs renovation as many do in our market now.

Good luck to you and if I can be of assistance, you can reach me at 404 644 7696.
0 votes Thank Flag Link Thu Mar 14, 2013
There are lots of good answers here. It would likely be in your best interest to work backwards, using November 29th, 2013 as your closing date assuming housing supply meets demand, you are approved through a reputable, direct lender and are submitting serious offers through an experienced, professional real estate agent.

• November 29th - Closing Date

• October 1, 2013 - Your offer is accepted by the seller and you are under contract

• 08/01 - 09/30 - You're touring homes and presenting offers

• July 31, 2013 - You're fully approved for a mortgage

• July 15, 2013 - You're working with the lender to get fully approved / interviewing agents

• Immediately - You're reviewing both your credit reports and credit scores for accuracy

• Immediately - You're registering to attend one of the local HUD-certified home buying classes

• Immediately - You're saving / arranging for the down payment of at least 3.5% down and closing costs

Here's a graphic illustration of the local home buying process

https://s3.amazonaws.com/easel.ly/all_easels/92924/Pathwayto…

Of course, the timeline will vary based upon your desired location, type of property, budget and more. But this should provide some answers to your question.

Incidentally, lenders can approve you for an FHA mortgage with scores as low as 600, but you'd get the greatest level of benefits (down payment assistance, more competitive interest rates, etc.) with at least a 640 credit score.

Hope that helps.
Solomon Greene
Georgia Real Estate Brokers Associate, REALTOR®, Georgia-certified Affordable Housing Counselor, CDPE
Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Thu Mar 14, 2013
I was very excited when I purchased my first home and Im sure you are as well. Take a deep breath and calm down. I would advise that you become acquainted with your personal credit report provided by Equifax, Experian and Transunion. Review the report and your credit scores. Your credit scores should be no less than 680. If scores are lower than 680 improve your scores before purchasing a house. Assuming your scores are at least 680 you can receive a pre-approval from most banks within 48 hours if you meet the bank's requirements which usually include 2 years income tax returns, W-2's for the last 2 years, pay stubs covering the last 30 days, and most recent bank statements. This will get you pre approved and you will be on your way! Hope this helps. Please email me if I can be of assistance at brandon_scott48@yahoo.com. Take care and congratulations on taking the first step!

"If you help enough people get what they want you will get all of what you want"....Zig Zigler
0 votes Thank Flag Link Thu Mar 14, 2013
Rico,
If you take a few minutes to read my post again you will notice that I did not say you could not get approved with a score less than 680. I said that if you do not have scores greater than 680 you should work on improving your credit scores. Sure you can get approved but getting approved with the the best interest rate should be your ultimate goal. Loan officers are in the business of getting potential buyers approved not necessarily helping you to get the best rates. Take care.
Flag Thu Mar 14, 2013
Hi, there are many great options on first mortgages out there right now. if this is your first home, please email me or go to my website "bestgahomes.kwrealty.com" and I will send you a book on buying your first home. There are some changes coming up on April 1st with FHA mortgages and PMI, if you are thinking about buying sooner it may benefit you to get pre-qualified before then. I have a few mortgage and credit unions that I have worked with that I could give you the number. This is a great time to be looking for a home, catching it as house prices are starting up and interest rates are still incredibly low. If I can help you at all please email me at elizabethclausen338@gmail.com. I work with the number one largest real estate company in the country, rated number 1 by JD and associates, so I have a lot of great people behind me. Enjoy!! Elizabeth
0 votes Thank Flag Link Wed Mar 13, 2013
Chris Irvin gave the best advice. However, a good loan officer doesn't need to know the score to know whether or not you'd qualify for a loan. You get one free report annually at annualcreditreport.com.
You don't need a 740 score. Can you imagine that being the cut off? We'd all be broke...lol..
Start in September. Close by Dec 15th or find yourself closing the following month.
0 votes Thank Flag Link Wed Mar 13, 2013
I recommend that you talk to more than one lender immediately. You will not need to spend money and make an application to do this.

You may have wonderful credit. You will typically need a credit score of 740 or greater. However, it is important to know if there are any issues with your credit that can be repaired prior to making an application. The lender that you are most comfortable with will need to pull your credit report. They will need to pull it again when you actually make application.

The bottom line is that it is valuable to know where you stand now. I talk with many potential home buyers who want to purchase now but do not yet qualify for the amount of the loan they think they need. because of credit flaws. As a result we agree to wait while they pay off CC debt and any collections no matter how small.

Also, I advise you to find a lender who is responsive to you. Not all work at the same level of service.

You might also want to go to a Keller Williams site and search for help for first time home buyers. This provides a beautiful guide to the entire home buying process.

I wish you success.
0 votes Thank Flag Link Wed Mar 13, 2013
Patricia thank you for your input. I really don't know about a 740 credit score by nov/dec i will check out the kw.com site.
Flag Wed Mar 13, 2013
Hi Rico - I would get myself pre-qualified within the next 30 - 45 days, that way if there are any issues that you need to work on you can get that done up front.

I would submit my documents for a full pre-approval around April or May if it's a shor sale that hasn't been "approved" by the listing bank. if you're looking for regular properties owned by the owners, then you could put everything together in mid September - October.

Fha is a more forgiving program for lower credit scores and less down payment (3.5%) out of pocket. You might want to call and get some answers on the different programs as wellas get yourself pre-qualified.

Advance preperation always make for easier and faster closings.

Steven C. Smith
213936
Green Tree mtg
404-782-4885
0 votes Thank Flag Link Wed Mar 13, 2013
Steven - thank you - i'll likely jump into it about the 1st week in May. i am just concerned that a re-run would affect me greatly.
Flag Wed Mar 13, 2013
It's never a bad idea to start the conversation with a reputable lender well in advance of your intended purchase date. Your lender will be able to give you guidance to the myriad of loan programs that are available, the pros & cons of each, and what you need to do to put yourself in the best position for financing. Your credit report is only valid for 90-120 days depending on the lender so if your credit is pulled now it will need to be re-pulled before you go under contract. Multiple credit inquiries in a short period of time can have an adverse effect on your score and will need to be explained to the lender in writing so be cautious. I'd recommend accessing your own credit report with scores from all 3 bureaus to review with a mortgage consultant as this will not count as an inquiry but will provide the detailed information needed to advise you of your realistic options. I'd be happy to assist you with this important milestone of your life.

Sincerely,
Chris Irvin
Brand Mortgage
NMLS #75615/465546
678-251-7889
cirvin@brandmortgage.com
0 votes Thank Flag Link Wed Mar 13, 2013
I am definitely concerned about having credit pulled in a short period of time. i'd hate to draft an explanation letter.
Flag Wed Mar 13, 2013
60-90 days before you want to move is plenty of time, but you may want to apply now just to make sure you're on the right track. If you apply now we'll have plenty of time to work through any problems before you find your new home.

We finance FHA loans with only 3.5% down and FICO scores as low as 580.

You may apply online at http://www.rhlapps.com/kjones or give me a call.

K.C. Jones
RH Lending
214-432-0486
kjones@rhlending.com
0 votes Thank Flag Link Wed Mar 13, 2013
KC, this this useful - so much information. My current score is at 630.
Flag Wed Mar 13, 2013
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