Home Buying in 19083>Question Details

Tatxx88, Home Buyer in Havertown, PA

Mortgage questions/ pre-qual. Questions.

Asked by Tatxx88, Havertown, PA Sat Mar 30, 2013

Have been working on getting my credit up for a little over a year ( and has gone up) I've joined quizzle, karma credit and credit sesame, I've also purchased my score through fico ( they only give two now) and purchased tu with their own site. I've gotten score all over the place and not sure if I would be able to get a mortgage now, I should mention I have $35,000-40,000 for a down payment. Anyone advise me of what I should do/ who to contact to talk about this. I would like to be in the Haverford township s/d.

Help the community by answering this question:


Hello Tatxx,

Give me a call and I would be happy to help you. I work with lots of first time home buyers and am in Bucks County Pa. I'd be happy to explain the process to you.

Before you go dealing with so called experts from all over the country, do a little research and you will find that there are plenty of qualified individuals in your own back yard.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
NMLS ID 143960
0 votes Thank Flag Link Sun Mar 31, 2013
Helaurin, scores range from 620-687, there is a house I have found online that I possibly be interested in. And I have closing cost set aside from the down payment ( also if I had to bump up my down payment I can a little), also have two jobs one full time and one seasonal- have been at the full time job for 6 years and the seasonal one for 3. I had some hiccups on my credit but they should all "fall off" in the next two years just things from when I was young and dumb and a few medical ones, however I am paying three off and in turn asked they be taken taken off the report. But no repositions or bankruptcy on any. I also currently have 3 unsecured credit cards with lower limits ( 2 w/ $500 and one w/$300) which get paid on time and a car payment of $310 a month. Could you recommend any places to start- I find all this a bit confusing.
0 votes Thank Flag Link Sat Mar 30, 2013
If you can get the 3 negative items off soon, that may help boost your credit score. Believe me it can be worth it. Most lenders use score bands to determine rate. If the lender's score band, for example, 740+ gets rate A, 720-739 gets rate B, 700-719 gets score C, 680-699 gets score D and let's say your score is 699 with those negatives on your file, getting them off might boost your score a few points - enough to move you in the next credit tier.
From personal experience, going back a few years, Citadel Federal Credit Union was great when I had less-than-perfect credit; they gave me a fair mortgage deal when other lenders just laughed in my face. I'd highly recommend you try them, as well as Federated Mortgage (try rick@fedmc.com - he was great when I was refinancing). Also try your current bank. Don't apply right away though and don't let them all pull your credit yet. Give them your basic info and ask what they'd likely offer in rates/terms.
Flag Sat Mar 30, 2013
Thanks for the additional info, it's helpful. The very best rates are generally for borrowers with a credit score of 720+. With scores in the 620-687 ranged, you probably can find a lender, but the interest rate will be higher than the best rates that most lenders will advertise. In other words, you might see someone offering 3.25% for a 30 year rate, but that's for someone with a credit score of 720+. For the moment, let's use the average of the range you gave - say 654 is your score (this is just for example). You may be offered a rate closer to 4% or even 4.5%, because your credit score is lower.

If you have three negative items on your report that you are paying off, be absolutely sure you get a PFD letter (Pay for Delete) - basically, get it in writing that they will either remove the negative item from all of your reports OR that they will report it as paid-as-agreed; and you want to get that letter before you make that final payment to them.
Flag Sat Mar 30, 2013

My name is Carmelle and I'm an ageny with Century 21 Absolute Realty. That is awesome that you have been working hard on rebuilding your credit and saving on top of that! Now I would like you to give me a call so that I can put you in touch with our in house mortgage broker who is fantastic and can look to see exactly where you stand and determine if you will be pre-approved for a mortgage. If you are approved, we can start house shopping (woohoo). If for some reason you are not approved, don't beat yourself up. We will be able to make a specific and detailed plan for you so that you may rebuild your credit and give you so e sort of timeline as to when you can expect to be approved if you follow the plan. Call me at 215-900-6656 so we can immediately get you started on your path to homeownership.

Carmelle Jean-Paul
Century 21 Absolute Realty
512 Baltimore Pike
Springfield, PA 19064
0 votes Thank Flag Link Sat Mar 30, 2013
Hi Tatxx88,

You said you have your scores, but didn't say what your scores are, so it's a bit hard to say "yes, you can get a mortgage now" or not without the relevant information.

That said, here's what I can say.

1. Your score is one piece of the puzzle - albeit, a very important piece. If your score is below 600, chances are that you will find it harder to get a mortgage. There may be a FEW direct-lenders who may be willing to work with you, especially since you have funds for a downpayment.

2. You mention you have $35k - $40k for a downpayment. Depending on the purchase price of the houses you are planning to look at and then eventually plan to buy, that might be a hefty downpayment or a drop in the bucket. So it would be helpful to know what you are targeting for a housing price range. Generally, you are better off if you are able to have 20% of the purchase price as the downpayment, because then you don't get stuck paying Private Mortgage Insurance (PMI). So if you are targeting houses in the $125k to $150k range, you've got a nice downpayment. However, there aren't a lot of homes available in that price range in the Haverford township school district - there are some - all condos, townhouses/rows and a couple of twins. I did see ONE single house offered $154,999 - which I would expect that if you like that one, you could negotiate that to under the $150k range. Otherwise, you'll need to be willing to accept PMI as part of your monthly housing cost.

3. Don't think that all of the money you've saved will be used for the downpayment - there are fees and costs involved besides the downpayment that you have to have funds for. Home inspection - figure between $500 to $700 for that. Appraisal fee (often in the $300 range). Title insurance, which depends on the price of the house, so I'm not able to estimate that. Mortgage application fee, various fees associated with mortgages, mortgage points (many buyers pay 3 points to get the lowest rate possible; each point is equal to 1% of the mortgage amount); transfer tax (typically 1% each for the buyer and the seller) - so you'd be wise to figure that whatever house you are looking at, set aside 6% of the house's price for a variety of fees. If you don't have a truck or friends with a truck and will need to hire someone to move you, then consider bumping that percentage up to 8% or even 10%. So if you are looking at a house of $150k, figure that at least 6% of your funds will be used for costs other than the downpaymetnt - that's $9k, gone. So if you have $40k set aside in total, figure you have $31k for a downpayment. 20% of a $150k house is $30k - that's just enough to avoid PMI. You can look at more expensive homes, if you are willing to be paying PMI.

4. Income is another (obvious) factor. Lenders use income & debt guidelines to determine if you are a good risk. Some lenders will let you allocate around 33% of your income towards housing expenses - if you don't have other debts or monthly obligations. Just depends.

If you feel your score, income, debts and employment is stable, talk to your current bank, also check out a couple of credit unions. Don't look just at the actual rate offered; look at fees too. It does you no good if someone offers you a 1/4 percent rate better but wants a 10k fee for it.
0 votes Thank Flag Link Sat Mar 30, 2013
My advise would be to stop pulling your own credit and actually talk to a loan officer to see where you stand. There is more than just credit that goes into getting approved for a home. Sounds like you are off to a good start though. I live and sell a lot in Havertown so I would love to help you find your next home. Call or email me and I can get you in touch with a loan officer.

Suzi King
Keller Williams Real Estate
Media, PA
0 votes Thank Flag Link Sat Mar 30, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer