Where can I get a mortgage??/?
Answer:
Well you are getting alot of information - but here are some basics to getting a home loan, and things you may want to consider.
A 100 percent loan - is not totally out of your reach - There are FHA programs, payment assistant programs to help you. Look at your middle credit score, if you do not know your credit scores - have your lender tell you, or pull your credit from the 3 credit reporting agencies - BUT the person you are working with should tell YOU.
Lenders look at the middle score to qualify a person - With a 580 or higher you can get a 100 percent loan. If your credit is low, than you will be going SUB-Prime, and any amount over 80 percent does not have MI - There are alot of companies I underwrite for that does NOT charge MI - normally the rate is slightly higher. Say you got qualified and your rate was 8.50 at par (Par, means that is what rate the lender quotes you, with no addon's to the rate for the lender to make pts on the back - some Lo"s add pts on the rate to make their money - instead of charging it up front). The 8.50 does not have MI included. This is a estimate only - ok -
If you go with a FHA loan, FHA has MI included. (With a 580 + you will be going sub-prime the rates are higher by about a 1 percent, but you have no MI. (MI is mortgage insurance in case you default on the loan, it is a way for lenders to have added insurance. It is not the same as Home Owners insurance, ok)
Now - Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -
It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.
Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information. This is not an advertisement - just helpful information for you.
Go to these websites:
1. http://www.nehemiahcorp.org/
http://www.fanniemaefoundation.org/..
http://www.fha-home-loans.com/
http://www.freddiemac.com/
Try lendingtree.com
lendingtree.com asks you basic information and sets you up with a mortgage company that will give you a loan.
As long as your mid score is over 500, you can get a mortgage.I am a loan officer and happy to answer any questions. I can help you obtain a mortgage without having to payoff derogatory debt. Do you know what your credit score is?
What is your definition of "fair to poor" credit?
Many people think their credit is "horrible" when it is actually average. There are many lenders out there that will finance 'sub-prime' borrowers.
I would suggest working with a mortgage planner to analyze your situation and needs and so they can shop around for the best program and rates to reach your goals.
No to lending tree! They sell your information to many companies all over the country. Your phone will be called for the next 5 years. I still get phone calls from this. Anyways instead either open your yellow pages and look for local mortgage brokers in your area. Make sure they understand about subprime. If they dont or dont know what you are talking about than hangup and go to the next person. If you have a stable income and credit score above 580 than you can obtain a 100% financing.
I may be slightly biased, but I would recommend Countrywide Home Loans.
Tons of loan programs for everyone.
Thanks,
Greg S.
Bill Dalessandro, Account Executive,
Advanced Capital Mortgage Services
www.acmsmortgage.com
office:856-415-7990 ext.114
NACA.COM --- or call 888-302-6222. I had subprime credit and they got me a 30 year fixed mortgage with Wachovia @ 4.5% back in 2000. They now offer 15 year fixed also. All loans are fixed with No $ down, no PMI, no closing cost and no attorney fees. All services are FREE. You pay no $ to them. You will have to sign up for free a 2 hr workshop. NACA’s typical borrower may have B, C, or even D credit ratings, which result from charge-offs, collections, judgments, and/or bankruptcies. In addition, these borrowers do not have substantial savings and have often encountered personal setbacks that require tremendous efforts to overcome.
NACA is creating a new national standard for providing loans to low and moderate-income people and "subprime" borrowers. NACA provides Prime Loans with unmatched mortgage services to borrowers whom the lending establishment has traditionally saddled with exorbitant interest rates and outrageous fees.
We go down to 387 fico, though there are several "thresholds" depending on what you're looking to do.
They are 475, 500, 525, 540, 560, 580, 600, 620, 660, and 700. Assuming you're looking to buy, go to www.annualcreditreport.com and run your credit and share _that_ with a good broker to get some advice. You may already qualifty and just not know it, or have some easy steps to clean it up. Or you may need 2 years of diligent work and the services of a legal professional.
I specialize in tough loans, but if you're looking for 100% financing you'll need at least a 570 for FHA, 580 for 100% conventional with provable income (bank statements are ok for this.average the deposits), or a 620 for "stated" income.
debt consolidation
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is:
http://umgarticles.atspace.com/debt-cons.
Try searching "mortgage poor credit" at this site
http://online-mortgage-shoppers.com/.
The search function here brings up some interesting results, a little time browsing this site may bring you the information you are seeking
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