Home Buying in Raleigh>Question Details

Kathleen, Home Buyer in Orlando, FL

Is it possible to still get a mortgage in Raleigh?

Asked by Kathleen, Orlando, FL Fri Dec 5, 2008

My fiance and I want to buy a home in Raleigh. I will be attending graduate school at NCSU and working part-time at NCSU. My fiance will be transferring to another store up there as a restaurant manager. Our combined gross salaries will be in the $35-40k range with him making $32 plus bonuses.

My credit is 710 and his is 541. We are working on getting his credit to improve by May (when we actually plan to buy) and in the past 3 months, we have already raised it 10 points. We hope that by summer we can get him up to 580-600. Our debt situation is mainly student loans that I have out in my name and we both have credit cards - $10k combined and also working on paying these down.

For a down payment, we have $10,000 and the homes we are looking at are in the $15k-$40k. Knowing our background, do you think we can get a loan for $10-30k? Our salaries, i hope, will make up for our credit. We will make more than our loan amount in one year. Also, we can get married earlier if needed.

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Answers

6
It is possible to get a mortgage, but you definitely need to talk with lenders first hand. Criteria, terms and their level of "enthusiasm" vary greatly, like any other service business. What are you looking to buy that's $15K, or was that a typo?
0 votes Thank Flag Link Sat Dec 13, 2008
Hi Kathleen
I am not sure about the homes you are looking at in the 15,000 to 40,000 range. If they are foreclosure's keep in mind the home will have to appraise and be inhabitable at closing for most lenders. As far as getting a loan, I would say yes, however I would incourage you to speak to a lender, as they can direct you how to get you're credit score up the most quickly and effective way. Our in house lender would be happy to speak with you, with no cost or obligation. Good Luck Michael
Web Reference: http://www.colvinm.hpw.com
0 votes Thank Flag Link Sat Dec 6, 2008
Hi Kathleen,

Lenders have lots of loan options available, especially if your credit score is above 620. You would definitely need to talk to a lender or 2 to decide what your best options are at this point. If you need the names of some local reputable lenders, I'd be glad to put you in contact with them and they can discuss with you whether it's the best time to buy or to rent for a little while longer as you continue to work on your credit. When looking to purchase a home, lenders look at your credit scores, your debt to income ratios, tax returns, bank statements, assets, and other financial information to determine if you're a good candidate for a mortgage loan. The more money you have to put down on a home, the less "risky" a loan is considered to be.

Another thing that you should be aware of is that it may not be in your best interests as a consumer to discuss confidential information about finances, motivation, and personal info. in a public arena... in NC, all agents represent the seller unless a verbal or written agreement is reached to establish some other type of agency relationship (like buyer's agency), so you have to be careful about disclosing anything you wouldn't want a potential seller to know about your situation. Here's a link that gives you information that explains the different types of agency that are available to you: http://www.fmrealty.com/site/fmessenger/WorkingWithRealEstat…

You'd never know it by listening to all of the gloom and doom on the national news, but there is still plenty of money available for mortgages for people who are qualified to purchase a home. Raleigh is an area that tends to be the last one in and the first one out of a depressed market, so although we've seen some price adjustments here more so than in the past, the average home sales price is still increasing and the Wake County area is still seeing property values appreciate (but it also depends on the neighborhood). If you meet with a lender and find that you are qualified to purchase a home, now is one of the best times in history to be able to buy a home. There's lots of inventory to choose from and many sellers and builders are willing to make more concessions than before.

With the tightening of lending guidelines as a result of the recent sub-prime mortgage fallout, credit scores are a major factor in determining the types of loan products and rates that would be available to you. In this area, most homes in the first time buyer range are definitely in excess of $100,000... so if you're thinking of buying a home, you would need to meet with a lender as one of your first steps to see what price range you're qualified for.

If you need further information, please feel free to send me an email via the link below. I'd be glad to help with your search. Have a wonderful day!

Wendy
0 votes Thank Flag Link Fri Dec 5, 2008
Kathleen - Yes, you can get a loan Raleigh. I've got a lender who can go as low as 580 on credit scores. Having $10,000 to put down will help, especially if you are looking at $40,000 property, as that would be a 25% down payment, which lenders really like (it shows you have a stake in the property, and are less likely to just walk away like has happened with many 100% loans)

I'd recommend contacting a lender today so they can guide you in what you need to do to help improve your credit to get qualified. They will look at the credit for both of you, and tell you what you need to do to qualify by May. They may want you to pay off certain debts over other debts.

Feel free to contact me and I can help you find a lender here that can start helping you get ready to buy in May.

Daniel
Web Reference: http://www.tri4sale.com
0 votes Thank Flag Link Fri Dec 5, 2008
Any good real estate agent can introduce you to great bankers who can lead you through the process to get the best answers, and hopefully great financing.
Consider building that banking relationship as soon as you can so you are sure you are doing the things that will serve you the best to acquire financing.

Good Luck!
Web Reference: http://www.mikejaquish.com
0 votes Thank Flag Link Fri Dec 5, 2008
Kathleen,

There is money available for borrowers. Unfortunately for you, the criteria for identifying good risk customers has become more strict.

Our recommendation is to meet with several lenders to find out what they feel you need to do to qualify for the loan you require.

good luck
0 votes Thank Flag Link Fri Dec 5, 2008
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