Home Buying in Parma>Question Details

Christina So…, Renter in Cleveland, OH

i m currently in credit counseling to get my credit score in good standing to own my first home.. is there advice you can give about home loans?

Asked by Christina Soto, Cleveland, OH Tue Mar 4, 2014

this is my first home loan and i really don't want to put ourselves under in debt with this home loan... are there any tips or things i should avoid in this process... i have 2 kids and need a stable place to raise my kids... this is a huge step for my family, your help is appreciated forever!!

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Answers

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You bet there are. The FIRST step is to contact a Parma REALTOR. Share with your REALTOR you situation and they home and or even loaction you believe is best for your family. Your REALTOR will refer you to a lender who has a track record for provided funding for homes like the one you want, on time, and under budget. Here are some lender and disapline issues you should be aware:

#1. Work with a lender who will give you a 'Clear-to-Close" within 7 days of applying. This means you do not pay for an inspection, appraisal and prepare to move only to have the bank 'find something' two days before closing and killing the deal. (That is Wells Fargo in case you did recognize their fingerprint.) Calibar will also provide you a government required Good Faith Estimate (GFE), not a worksheet at the same time.

#2. Use a local lender who provides portfolio loans. This means they will not be reselling your mortgage. The result will be you and your lender have the same goal. Normally, your goal is to buy a house while the banks only goal is to resell the mortgage. This DOES have consequences for you.

#3. Do not buy at the very top of your buying capacity.

#4. Do not use a lender or mortgage broker who operates on a rebate/kickback platform. You will need to ask the agent and the lender and the broker specifically if rebates are in play. For many reasons, the 'sweet words' of rebate will quickly turn bitter in the shambles of a failed purchase attempt.

$5. SAVE MONEY
$6. Reduce spending
#7. Increase your income
#8 Pay everything on time
#9 Do not make any major purchases on credit.
#10 Be very transparent in your conversation with your Real Estate professional. The reason we stay in the business is for folks just like you. Be sincere. Be honest. Be transparent. Don't second guess your agent. If you have questions, don't ask strangers on the internet, turn towards the professional you hire.

Very best of success in buying your first home.
These are very exciting and anxious times for you. Put some faith in the PROS you hire.
2 votes Thank Flag Link Tue Mar 4, 2014
Read "The Richest Man in Babylon".
0 votes Thank Flag Link Sat May 3, 2014
Best advice I can give you is: First save 10% out of your paycheck. Second, buy only what you can pay cash for. And that will serve you well throughout your life.
0 votes Thank Flag Link Sat May 3, 2014
We can go as low as a 530 mid. Credit Counseling and Credit Repair are two different things. Credit Counseling so long as you've participated 12 months and your payments were on time (with proof) and your counselor's approval you could buy a home. Credit Repair, you're just working on items on credit to clear up duplicates or paying and updating accts is different, there's no time frame so long as you are ready otherwise. Your short term goal is to get your score up to at least a 530. However, it's best for you to get your score at least a 580; therefore you wouldn't have such a large down payment requirement.
0 votes Thank Flag Link Thu Mar 6, 2014
THANK YOU ALL FOR THE ADVICE!!!!!!!!!!!!!!!!!!!!!!!!!!!! i am currently at a 521, i have only had 2 credit cards in my life so that set me back. and my kids hospital bills from birth i have to get fixed... thats it... i paid off one credit card already. they both were no more than 400-500 to pay off. plus when my boyfriend and i got our credit scores checked he had no credit. like he doesnt even exist... so that put a damper on our abilty to move things along for our family so its just me holding us up lol.... our previous lender wanted me to get to a 650 or higher to even start the process....so im doing what i can for now to get things paid in full....
0 votes Thank Flag Link Wed Mar 5, 2014
Credit counseling is looked at like a Ch 13. Lenders won't lend to you until your out of credit counseling. If you do get a loan it will be ugly... We offer a Guaranteed Credit Restoration Program. We can completely restore your credit as if you never had a late payment.
Its not Cheap but the result are guaranteed. Results in 30 to 45 days, 700 plus fico.
0 votes Thank Flag Link Wed Mar 5, 2014
Where is you credit currently standing at? Lenders like myself can go as low as 580 when it comes to credit scores. So if your scores are at the range or above, you should be good to go if your other finances are in place. These other financial aspects such as income, assets, expenses, debt, employment, and down payment must be strong as well. On the other hand, if your scores are below 580, I recommend you keep working on your credit. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Wed Mar 5, 2014
Hi Christina, Let me start off by stating that if you speak with different people about the specifics or the processing of a mortgage, you're bound to get some different answers due to overlays or basic processing procedures being slightly different per company (and per State). Home loan advice... work with someone that you feel comfortable with and who has experience in effort to make the process run smoothly. Be prepared with basic income, employment and asset information when you call for your pre-approval. Also make sure you're keeping good records ie rental/housing history (12 months), bank statements (2 months each acct all pages), pay stubs (2-4), w-2s & tax returns (two years for each). From there you'll be guided through each and every step of the process when the time comes. It's information overload otherwise. If I can answer any add'l questions, I'd be happy to help. Best wishes otherwise, Kimberly Lawson, Licensed Mortgage Loan Originator - Ohio only. Contact and licensing information can be found on my profile.
0 votes Thank Flag Link Tue Mar 4, 2014
Hi Christina,
Participating in credit counseling is an excellent start to getting yourself approved for a mortgage. You will want to speak with a loan officer who is looking out for your best interest in order to get a full understanding of what the best option will be for you and your family. That being said, the number one thing you want to avoid is submitting for a preapproval online.
The loan officer is crucial and having a knowledgeable Realtor is just as important.
As Realtors we don't dive into your finances the way that a lender does, but we are aware of the programs that are available and we can be sure to get your lender to qualify you for those programs. The programs I'm talking about include down payment assistance, reduced interest rates, grants, city programs, county programs, etc. These programs/loans are not available to everyone, everywhere but with a savvy Realtor and lender, you are fairly certain to have an opportunity to take advantage of at least one of them.
If you would like to speak with me about what is available, please feel free to send me an e-mail at BenMurphy@HowardHanna.com with your contact info. I will be sure to get in touch. Once I know a little more about your specific financial situation I can refer you to a trust worthy loan officer who will be equipped to get you preapproved.
0 votes Thank Flag Link Tue Mar 4, 2014
Hi Christina. I am a local agent. The best advice I can give is to talk to a few different lenders, do not make any large purchases and save. There are so many programs available and not every lender has access to the same ones. In the meantime, do your homework on the neighborhoods you like and different house styles. If you have any questions or need more references, feel free to call me.
0 votes Thank Flag Link Tue Mar 4, 2014
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