L.F. asks from Fort Mill, SC on April 08, 2008
Mom Whose Thinking of Buying a home...HELP!!
Sorry to sound desperate but my DH & I are trying to get pre-approved for a home. We have talked to a Mortgage Banker and just recently, a Mortgage Broker. They both are saying different things and we are trying to decide the best route to follow. With the Broker, it seems he is approving us for less bc of our accidentally messed up credit (we moved and had a baby, a big year for us, and a line of credit bill we are supposed to pay, quit arriving.) We forgot due to the craziness in our life. Anyway, we have made a few payments and our new minimum is now 0. Even though, we are fixing it, I believe this is still hurting us. We are trying to get a letter sent to the Broker so he can see we fixed this issue. The Banker on the other hand, didn't say anything about this. The bill is under my DH's name so his credit score is low. Mine however is very good. I'm supposed to talk to the Banker tomorrow about different options such as an FHA loan where we must put down 3%. That is another thing, we don't have money to put down or much for closing. We have some money we can use from my DH's 401K. I know the seller can contribute to the down payment and closing fees. I guess I just want to know if anyone else had a frustrating time buying a house bc you didn't have much money/credit screw-ups? Urggh, about that!! Also, did using a Banker seem better than a Broker? Thanks!!
C.H. answers from Raleigh on April 17, 2008
Hello. I can let you know that Bankers can only offer you the programs that they have at the bank and are totally funded by the bank, so there is different criteria on approving you for a loan. A Broker works with many different loan companies to get the best loan numbers for you. The loan companies that the Broker gets their information from are the ones who set your limit according to your credit and the information that the Broker gives them. There are more choices with a broker as far as getting a good rate with low down payment, but a bank may be the way to go as well because they back up their own loans. It all depends on your situation. I am a real estate agent and you can contact me any time if you have any other questions or concerns. ____@____.com
God Bless you and have a great day!
1 mom found this helpful
A.B. answers from Charlotte on April 09, 2008
Hi L. and Shanna,
I'm in a similar situation. I'm in the Charlotte, NC area. In everyone's experience, is a realtor like Shanna described your best bet in finding help with first-time home buyer, low income, rural area loans, or is a mortgage broker apt to know about more resources? I'm not even sure how much of my limited savings should go into a down payment, and how much I should keep for the kids.
Anyone have a recommendation for realtors/mtg brokers in Mecklenburg and surrounding areas?
Thanks, and good luck, L.!
1 mom found this helpful
S.F. answers from Louisville on April 08, 2008
Hehe, I know your pain! It took us several years to buy the house we're in now. We talked to the bank, talked to brokers, and had our heades spinning by the time it was all done. Then we got lucky, I had called about an ad in the paper about a 0 down loan and ended up talking to a representive from ReMax. We met up with the realtor and he helped us figure out what price range would be best for us, helped set up the inital loan paper work through the loan company and took us house hunting! We DID have to straighten up hubby's credit, jump several hoops and provided a TON of paperwork, but we qualified for a first time homebuyers loan at 6% interest,and a down payment assistance grant. That meant that we didn't have to pay any money out of pocket. It is a very hard and tiring road buying ahouse L., but it is also worth it. Go with your gut instinct, and don't let them talk you into something that you may not be able to afford. Your first house isn't susposed to be your "dream" house. If you get a good enoughr realtor, he/she should be able to listen to you and help get you into a house that you both love.
1 mom found this helpful
K.T. answers from Lexington on April 09, 2008
Hi L.! I'm a work from home mom who happens to be mortgage loan officer and used to be a broker. The late pays on your line of credit will definitely lower your score and hurt your chances of getting a new mortgage, but how much depends on how long ago the late pays were. I'm in Ky. Ky Housing Corp offers down payment/closiig cost assistance if your income is within certain limits. Check out this website: http://www.sha.state.sc.us/index.asp?n=2&p=0&s=2 It looks like SC also offers assistance. Lots of people think that "broker" is a bad word, but actually you may end up getting a better deal from a broker or a mortgage company (like me!!) than you would a traditional bank. The reason is that we have hundreds of lenders we can submit your loan to, instead of just the one bank. I'd be happy to help you if you'd like. Just give me a call on my cell...###-###-####. K. T., First Liberty Financial Mortgage
M.S. answers from Raleigh on April 09, 2008
I bought my first home with a first time home buyer assistance down payment loan from the city where I live. I first went through a home buyer education series, spent over a year cleaning up my credit, and got pre qualified by a banker. That was a lot of work, but it was perfect. The house was small! But I could afford it and I was happy there.
The next house was a BIG mistake. I was laid off a good paying job and now (8 years later) we can't afford the mortgage. Originally we nearly tripled the first home payment to get the next house. We used a mortgage broker and got BURNED with a high interest loan with a prepayment penalty because of my husband's bad credit. (I bought the first house when I was single) We were expecting and thought we had to move fast to get some more room for our growing family. DON'T RUSH. If you have some credit problems - take time to fix them. Don't let a broker or even a banker talk you into a loan that you can't afford or that includes interest hikes, prepayment penalties, or points (extra money paid at closing to get a better interest rate). I thought I was too smart to get swindled. I was wrong. Banking people are in the business of making $ for themselves with commissions and another closed deal for the bank. After being a homeowner for nearly 15 years, I may lose my home and end up renting again. The housing market now is so glutted with sellers, we can't get an offer eventhough we're listing at almost 20K below the tax value. I'm not trying to make you feel sorry for me, but I'm asking you to consider that sometimes fighting for something that you really, really want means waiting until the timing is right. Real estate is an investment, just like the stock market and not all investments give you a profitable return. All the best to you whatever you decide.