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"As a first-time homebuyer, I was nervous about the entire process. Step by step, Joe made it easy and fun. His expertise in the Columbus real estate market is a tremendous asset. He is highly recommended!" - Nicolette Horan, March 08
"I wanted to say thank you again, so much, for all your hard work. I know that you really put a lot of time into this transaction and I really, really appreciate it. I'm so happy I got the house and it all worked out and I just wanted to say thanks again, you did a great job and i really appreciate it. I will put that on the survey when they send it to me.
If there is ever anything I can do for you, please don't hesitate to give me a call. I will refer every single person I know to you. I'm going to go get my dog and we're going to sit on the floor of our new house and have a glass of champaign. Thanks a lot Joe" -- Michael Mamp, Feb 08
What does a barely-able-to-buy-a-home Buyer look like?
August 29th, 2007 categories: Mortgage/Finance
I have a good idea of the parameters used to tell whether or not you’re able to buy a home. It’s the sort of thing I see, experience and read about every day. It occurred to me today that you may not know such things but would like to know more about what it takes to buy a home.
Many people I work with are surprised at how easy it is to qualify for a loan. Many of those same people also take great care of their credit history, pay their bills on time, and have a general idea of how much they can/want to afford. (Yes, there is a big, big difference between being approved for a certain amount of loan and being comfortable with a certain monthly payment. Always choose the comfort.)
Today I received the following email from some lender I have never spoken with. It reminded me of all the people who’d purchased homes in the last 7–8 years who only qualified for the loan because of this crazy incentive or that ludicrous promotion. Surely you’ve read about the state of the National Real Estate market and the high numbers of foreclosures.
So, gentle reader, here is the face of someone who could barely qualify for a loan but, IMHO, probably should wait until they’re in a better position:
Do you have a borrower that doesn’t have great credit, has a recent history of paying their bills on time, and can’t quite qualify for FHA? Our Flexible Solutions program is the perfect opportunity for you.
- Collections do not have to be paid as long as they don’t impact title.
- 30 year fixed, conventional financing.
- Rates starting around 7.25, and never higher than 8.0% (APR varies based on loan amount)
- 3% in closing costs may be paid by the seller.
- Credit scores as low as 575 (middle) and possibly lower with strong compensating factors
- NO PREPAYMENT PENALTY!
- Closing costs = 1% origination, $300 appraisal, and $550 processing.
- Bankruptcy must be 2 years old, foreclosure must be 4 years old.
- Borrower minimum contribution is $500.00
- NO INCOME RESTRICTIONS
The market might be tough, but chances are, you have a good buyer that fits in these wide parameters and wants a flexible, affordable mortgage.
Chris Johnson
August 29th, 2007
I’m that lender that Joe’s never talked to. Gotta love google alerts.
Joe, I agree, a lot of people should not have credit extended for the purchase of a home. A lot of people really shouldn’t own a home, and nobody’s really at fault. I’m targeting the family that had no insurance, and has huge collections, but has since paid their bills. The working people with defaulted student loans that they can’t cattch up…
These are folks that represent a large segment of the economy. I’m primarily an A paper lender, but there is a need for a fixed rate mortgage for A- people. I have that, and I want realtors to know that I can still get people approved.
There is another problem, man, that is an industry dirty secret:
We are professionals and trusted adivsors. We need to act like it, no matter what the momentary cost is to our business.
Nobody in our industry has wanted to say no to anyone for years and years. As a Realtor, you’re discriminating. As a lender, if the product exists, you’re committing career suicide by telling a Real estate agent no.
Who shouldn’t buy a house? Generally?
-Someone with $500 in rent payments that has to pay $1300 for their home (and has no savings).
-Someone that bounces 18-20 checks a month.
-Someone that is counting on ALL of their income.
So say no!