gettin approved for a home loan

[BOSS 6]

I have had the hardest time getting approved for a home loan, given I have had credit trouble in the past but my fico score is 600 so I should get approved for a FHA loan could someone give me some insight on this matter.

 

[TexasT]

If you are determined to buy now don't give up. We are coming into a slow period in the industry so there will be somebody that wants to loan you some money to buy.

 

[Junior Samples]

Read the fine print when you do get to the table and if they try and wiggle in adjustable rate tell em to go F themselves and watch em squirm.

When it comes time to sit down and sign keep in mind their like used car salesmen and they will try and get stuff past you cause you'll be inundated with so much paperwork, they will all look at their watches in a polite way which in turn will make you feel bad and start signing faster and faster.

Make sure you have bottom line on closing costs and up here in Mich they have whats called homestead tax meaning that some couple who bought home in 71 were paying property taxes based on that year and when they sell, the people who buy the house get their butts handed to em cause them taxes just went up to reflect 2007 so look into that as well.

Remember they need you, theres a big glut of homes on the market and you can pick and choose once you got financing.

good luck and make sure you get pole barn

Mike

 

[Madcat455]

I have had the hardest time getting approved for a home loan, given I have had credit trouble in the past but my fico score is 600 so I should get approved for a FHA loan could someone give me some insight on this matter.

I had trouble with my first loan too (FHA)... I think my Beacon score was in the low 600's as well.

Their main part with me was that ALL of my outstanding debt on my credit had to be paid off... which included a bad check from 6yrs prior that was never taken off my credit after I settled it.

Easier just to write another $20 check to pay it off. (used a check to pay off a bad check...LOL)

NOW... credit card balances didn't have to be paid, but any charge off's or delequencies had to be PIF.

Make sure that there are no charges for paying it off early, incase you want/have to sell in a few years. That was one they tried to sneek in on me.

 

[XLR8]

A 600 credit score is much more difficult to overcome today that it was 12 months ago. By the way, FHA does not have any credit score requirements nor do they look at credit scores. The lender that is underwritng your FHA loan, however, may have a minimum credit score for their own institution. On an FHA loan credit history rather than the credit score is reviewed. The most attention is paid to the last 24 months of your history. In general there can be no major derogatory credit in the last 24 month such as collections, charge-offs and 60+ day lates. In the last 12 months there can generally be no lates. Small medical collections can many times be ignored.

If your credit history meets the above, you need to look for a lender without a credit score floor or one with a floor under 600.

I have been underwriting FHA loans for over 10 years and am a Regional Underwriting Manager for a top-ten mortgage company/bank.

 

[phillyturbosix]

The banks are crying broke for all the people they lent money over the last few years that now can't afford the loans and went over their heads because the banks let them do it. The banks went to the government to bail them out and they pretty much said you gave the money away now deal with it. So what happen in the end is this time the banks are very careful who they loan money out to. You have to score a really high credit score to get the loan and a reasonable interest rate. I'm trying to buy another investment property so I've been going thru all the channels. I was approved but the numbers are not where I want them to be on the property I was looking into. When I was shopping for loans and rates the first thing they said was I will not get a good rate unless my credit score is 750 or higher! So yea the banks closed up the flow of loans and are being very careful with who they lend money to and at what rate. With the higher interest rates and the real estate boom over the last few years it's all slowing down. Then you take this mess of a war Bush has going on and it kills the economy even more making it harder for the little guy to get a loan to buy a home in the end!

One suggestion is go to freecreditreport.com and check your credit. Make sure everything is in check and correct. If you have credit cards having to many or a few with a high monthly balance can hurt you as well. Make sure you always pay more then the monthly due payment. It don't take much to get really good credit. I went from a 500 score to 795 in less then 6 months and bought my first property a month later after I scored the 795. It can be done. Hope this helps! Don't give up!

 

[SPOOLFOOL2]

Not Sure where your thinking of buying, But don't be in a hurry. Right now, "TIME IS ON YOUR SIDE". My guess, (and many others) is that if you like the prices now, you'll like em even better next year . Now is a great time to get your ducks in a row. The better your credit score, and the more your down payment is. = The better the intrest rate, and the more power you have in getting a sweet deal. It's kinda like building a TB. Have patents, learn, learn, learn all you can. Then when you know it's right, lay waist to everything in sight ...

You can trust me...
I'm your wife's gynecologist.

Good luck

Mike

 

[BOSS 6]

closing on my house this month

I have waited it out hopefully will close on my house 03/27/08

 

[Junior Samples]

just remember what i said up top...dont let em crowd ya when your signing..cause they WILL try and wiggle the fine print

 

[stack1]

Did you end up doing a FHA loan?

 

[Chuck Leeper]

Just saw this @ a Google site:
Borrowers with high FICO scores - the top tier ranges between 760 and 850 - can expect lenders to offer them lower interest rates and more loan choices. Scores of 620 or lower usually place a borrower in the “subprime” category, and they can expect to be quoted significantly higher interest rates and may be offered fewer varieties of loans. A FICO score of about 500-520 is generally the minimum that will qualify.

I bought my place last May.
I have a score of over 825.
I have zero CC debt.
I had a few $1000 still owed on my 07 Silverado.
My home sold for $100K over the pay off.
My new place was the same price as the old.
Bottom line, I had to pay off my truck, and PROVE where the $ came from, B4 they'd close the loan.
Things are TOUGH in the mortgage business, and they are not going to find themselves bent over w/ more of the SSDD.
Interest rates to the banks have been cut several times. Those cuts are not being passed on to the borrowers. The increased margins are used to cover thier stupid moves from 5 yrs ago...

 

[gnfanatic]

Chuck , they probably knew about your pulled pork addiction

In Nov I bought a house, 30% down, 720 score and only a truck payment, no debt. they still busted nuts. You need to fix your credit, even if you get a loan your interest will be high!! After fixing that credit score, pay off your debt and look for a 30 year fixed rate! The rate is now in the 5's!.

 

[GNSCOTT]

One of the main reasons that there is a housing glut is becaus they are not just giving loans out to anyone. I think you should be consulting a mortgage broker. The key will be finding a house that is selling for below appraised value. Talk to the broker and get pre-approved first.

 

[GNBRETT]

650 is usually the magic number for a home loan.

I have know a few friends of mine that hired attorneys that specifically help clean up your credit. You only need to raise it 50 points or so. It might be worth the money considering you will likely pay a 2% higher rate if you are under 650. That is a lot of loot over even a few years, nevermind 30.

 

[Grimster]

Not Sure where your thinking of buying, But don't be in a hurry. Right now, "TIME IS ON YOUR SIDE". My guess, (and many others) is that if you like the prices now, you'll like em even better next year . Now is a great time to get your ducks in a row. The better your credit score, and the more your down payment is. = The better the intrest rate, and the more power you have in getting a sweet deal.

His location says Town Creek, Alabama so houses there like here, are about as cheap as you can find anywhere in the country. Plus thanks to BRAC our housing market is still somewhat of a seller's market, however, thanks to the credit crunch it's harder for the buyers to get the loans, meaning the market is slowing, but houses are pretty cheap around here, and in Town Creek probably even moreso, there really isn't any "down" room.

Take my house for example, 2100 sq foot heated, with a 900 sq foot basement, 3.7 acres, 2 miles from the city limits of Madison and Huntsville, I bought it for $144K 4 years ago. My wife's commute is 2 miles. This ain't California that's for sure.

That being said, with a low 600 I'd spend a year cleaning it up, I spent 2 years cleaning mine up before I bought, I started with a 470-490 (yes seriously) and after 2 years I had it cleaned up to around 600-640. And yes, 2 years of squeaky clean credit, no lates/etc was VERY important to the mortgage company I used, mine is FHA too.

And to BOSS6, good luck with the new house

 

[SS_Sean]

I have had the hardest time getting approved for a home loan, given I have had credit trouble in the past but my fico score is 600 so I should get approved for a FHA loan could someone give me some insight on this matter.

My friggin score is 700 and I had a heck of a time, too. I just bought a couple weeks ago. They wanted a letter from my great great grandmother on my fathers side, a promisary note from my dog, and 50 years worth of employment history!!!!

(I joke, but you get the point.)

Don't give up though....it's a buyers market fo sho.

 

[XLR8]

It is now to the point where mortgage companies are only lending to people who have a good potential to actually pay back the loan! What a difference a year makes.