Home Buying in Lima>Question Details

Karmi Conaway, Home Buyer in Lima, OH

why can't i get a loan?

Asked by Karmi Conaway, Lima, OH Mon Jul 30, 2012

i have a credit score of 632 and annual income of $30,000. i have nearly no debt and my credit cards (walmart, old navy, and a jewlery store card) are at or near 40% of the credit limit. i went today in hopes of getting pre approved because i was told by the bank in january that i was really close and would most likely be in a home by the "end of summer". i wasn't pre-approved today. i just don't know what the problem is because i have nothing in collections or any late payments within the last 3 years. any advice or answers??

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Help the community by answering this question:


Karmi it sounds like you just need someone to help you find the right lender. If you are not approved at this time you need to be working with a lender helping you step by step to correct any issues keeping you from obtaining financing.
0 votes Thank Flag Link Sun Sep 29, 2013
I'm a lender, actually spend most of my time in Findlay, Ohio. I can work with scores less than 640 depending on the loan program you were hoping to utilize.

Of course there are guidelines that every loan needs to meet as the other professionals have pointed out ie debt ratio, no late payments in the last 12 months, current housing history and more.

If you'd like to see if I could help you give me a call 888-659-3848. Or if you'd like to apply online you can do that at http://kimlawsonloanofficer.com

Best to you in your search,

Kimberly Lawson
Licensed Ohio Loan Officer
Phone/Fax: 888-659-3848
EMAIL: kimberly.Lawson@fpfmail.com
Licensing: NMLS: 5601 OH.LO.004495.000

First Priority Financial, Inc.
"Where Open Minds Close More Home Loans"
748 N Court St Ste 201
Medina, OH 44256
MBMB.850147.001 NMLS: 3257
We are an equal opportunity lender.
0 votes Thank Flag Link Mon Mar 11, 2013
They are required by federal law to tell you in writing exactly why you were turned down if you actually applied for a mortgage. The first problem in my shop would be the credit score is below my minimum threshold by 8 points. Not a big amount and Terry is right, paying down below 25% would bump that up at least that much. Find a local lender that has access to CreditXpertâ„¢ and have them run a report for you. This is a legal maneuver unlike disputing accurate information that is negative. I linked a page on my web site that explains this, there is also a lot of other info about how to apply for a mortgage, hope it helps, good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon Jul 30, 2012
All previous answers are right on target. I would only like to add that in my experience, I have banks to be much more conservative that other entities such as mortgage companies and credit unions. It sounds like Michael has offered to help you and is from your area. Hope you'll give him a call. It is important to work with an agent when purchasing a home and having an agent that is familiar with the lending side is very important as well.

I have had many first-time home buyers that desperately wanted to be home owners but were not ready at the time they contacted me. I worked with them and their lender to get that to that point. Sometimes it took a month or two and other times it took close to a year. Either way, we did get them in a home of their own eventually. It takes time, knowledge and patience to work with a first time buyer. Looks like Michael is there to help.
0 votes Thank Flag Link Mon Jul 30, 2012
it could be possible that your debt to income ratio is too high. The bank looks at not only what you will be spending on housing but also your toatal debt payments overall. If your credit card debt is too high they may not approve you. Also, each bank is different in what they will approve.

When I am acting as a Buyers Agent, I will help my client figure these things out. If you are interested, please feel free to give me a call and we can look at your finances and see if another bank or mortage company might work for you.

Mike Raines
Busy B Realty
Lima, Ohio
0 votes Thank Flag Link Mon Jul 30, 2012
I would recommend you pay down the credit cards to no more than 25% of the credit limit. Also, the lender you are working with should be able to give you direction in getting your credit where it needs to be to qualify for a loan.
0 votes Thank Flag Link Mon Jul 30, 2012
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