Credit issues? Finances on the mend?
Do you have a few little issues with your credit and feel like there's no way you could ever invest in real estate and buy a home? Good news! Some mortgage loan programs are still available for borrowers with a few minor dings on their credit. Your options will also hinge on your credit score and the scenario involved that resulted in the damaged credit.
Most lenders today are more stringent in their loan requirements than in the past due to the unscrupulous predatory lending practices of a few lenders. Previously, some of those lenders charged high percentage fees to make mortgage loans that could have been made with lesser charges. Others were inflating appraisal values in order to lend out more principal to the borrower. Sometimes this was done with loans that offered at least 100% of the value and as much as 25% over the value of the property.
In other instances of questionable lending practices, some lenders were lending out more money to borrowers than they could actually afford by inflating their income, assets, etc. on the loan application. This gave borrowers more buying power and caused many to end up in foreclosure or bankruptcy eventually.
The lending practices of today are more careful to educate the consumer of what their options are and help the decison that is made to be well informed. There are more government guidelines in place to protect the buyer from overextending their budget and ending up in default.
There are several programs that help the borrower with slightly damaged credit to secure a mortgage loan with a few additional options that include stipulations that have to be met, moderately higher interest rates or fees to "buy down" their interest rate.
Wilson has a great selection of properties for buyers to choose from...even if their credit has a little bruising. A few of these are already priced below market value due to repairs or updating that needs to be handled. "Diamond in the rough" or "fixer upper" are a couple of terms that are used to describe such properties. "Sweat equity" is a great way to get started in adding to your financial assets and plan for the future. We'll discuss that in a future blog.
Look - it can't hurt to find out what you qualify for in order to buy a home. You may be surprised! Home ownership is still a great investment! I have many years of mortgage experience and knows the mortgage process well which allows him to sometimes offer options to lenders that help make things go smoother to get a loan closed - especially if a snag comes up.
We can also help you with our knowledge of the Wilson real estate market and the Wilson area plus offer our professional advice and guidance. Please call to discuss your options at 252-289-7355.
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