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This is a question that was posted recently on Trulia Voices…
“Looking for a Home in the Triangle. I think I’ll be ready to purchase in March of 2015. When should Iapply for a mortgage???”
People who are considering a move to the Triangle need to plan for their home purchase. If you will be in the market to purchase in 2015- you should speak with a NC lender as soon as possible. Why?
We have our own set of unique qualifying guidelines in NC – mandated by the State Legislature. While we are a “brick and mortar” state (meaning if you are a mortgage company doing business in NC you should have an office here and not just be “virtual”), there are always those with fancy footwork trying to figure out a way around the system. Better to be safe than sorry – and find a “local” to work with.
In some cases, our State Legislature defines how much a lendercan contribute toward closing costs, they also dictate WHICH KIND of loan programs are available to consumers. So again, think local.
But the MAIN REASON you should speak with a lender even six or eight months before you purchase is this:
With the “mortgage MESS” of the last year, credit scores have become one of the MOST IMPORTANT parts to a loan approval… ESPECIALLY in North Carolina. Because our programs are limited, we rely even more heavily on high credit scores to qualify buyers, and get the best interest rate. If you have a “good” score of 640 – we could get your FICO score up to 720 if we had 6 to 8 months! This change in your score could mean the difference of over $75 a month in your payment!
Let’s see… $75 a month savings, live in a house for 4 years, that’s a MINIMUM SAVINGS of $3600! Just for speaking with a loan officer EARLIER in the process! So if you are considering a purchase, call now!
Acredit reportis just a snapshot in time… think about someone taking a picture of you in one day. Well, they might get a picture of you at Starbucks, at your desk, in a meeting – you move during your day.Creditors can submit information to the Bureaus on any given day at any given time – so the snapshot (or pull of your credit) on a given day by different people might have slightly different scores. It doesn’t happen often – but it can happen.
FHA loans have the most lenient credit scoring models. Minimum credit scores for FHA Loans vary, and can go from 580 all the way up to 640.
Folks with minimumcredit scores between 580 and 619. If you have excellent offsetting, compensating factors, like extra funds left over after closing, and very low debt to income ratios, you can get a FHA loan with minimum credit scores below 620.
Steve and Eleanor Thorne, Connect With Us on Facebook, 919-649-5058
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About Eleanor Thorne
I see myself differently than most loan officers in the Cary/Raleigh market. As a rare Cary native, I see myself as an expert on the area, on mortgage industry changes & factors that effect rates! I've lived in Cary since 1968 - and I'm second generation "mortgage." I work with my husband, Steve Thorne Mortgage Loan Originator #60596 Equal Housing Lender
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[…] Denied.com | Credit Scores | Credit Reports | Apply for Credit wrote an interesting post today onHere’s a quick excerptLooking for a Home – When Do I Apply? October 13th, 2008 This is a question that was posted recently on Trulia Voices… “Looking for a Home in the Triangle. I think I’ll be ready to purchase in March of 2009. When should IÂapply for a mortgage???â€Â People who are considering a move to the Triangle need to plan for their home purchase. If you will be in the market to purchase in 2009 – you should speak with a NC lender as soon as possible. Why? We have our own set of unique qualifying gui […]
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FAQs
You should start the pre-approval process less than four months before buying a house. Your mortgage pre-approval letter is good for four months from the date we check your credit report. After that, your credit expires, and so does your pre-approval letter.
What qualifies you as a first-time home buyer in NC? ›
North Carolina first-time homebuyer qualifications
The qualifications for first-time homebuyer programs in North Carolina vary, but most require at least a 640 credit score, which is well below the state average of 709, according to Experian. You may also need to meet certain income and sales price limits.
When should I start my mortgage application? ›
When it comes to when to apply for a mortgage, the best advice is to start the process before you even start seriously looking for somewhere to buy. If you're looking at properties before starting the mortgage process, you've left it too late.
Is it hard to get a mortgage in North Carolina? ›
What do mortgage lenders consider a poor credit score in North Carolina? The required credit scores for mortgages in North Carolina differ based on the type of loan. Conventional loans demand a score of 620, while government-backed loans are more lenient. However, a score below 500 makes mortgage approval difficult.
Should you apply for a mortgage before finding a house? ›
If you're ready to begin your home-buying journey, get preapproved for a mortgage first. Preapproval can help you determine what your budget is and show sellers you're serious about buying, which can be critical in a highly competitive real estate market.
What is the 120 rule for mortgage? ›
A mortgage servicer may not make a first notice or filing for foreclosure until the borrower is more than 120 days delinquent. The 120-day period under the rules is designed to give borrowers time to learn about workout options and file an application for mortgage assistance.
How much do first-time home buyers have to put down in NC? ›
North Carolina home buyer stats
| Median Home Sale Price in NC1 | $368,600 |
|---|
| Minimum Down Payment in NC (3%) | $11,058 |
| 20% Down Payment in NC | $73,720 |
| Average Credit Score in NC2 | 707 |
| Maximum NC Home Buyer Grant3 | Up to $50,000 (House Charlotte) |
Apr 19, 2024
If you are a first-time home buyer or military veteran and qualify for an NC Home Advantage Mortgage™, you may be eligible for $15,000 in down payment assistance with the NC 1st Home Advantage Down Payment.
What is the income limit for down payment assistance in NC? ›
NCHFA NC Home Advantage Mortgage
Here are the requirements to qualify: Your annual income is not over $134,000. Your credit score is 640 or higher. Your debt-to-income (DTI) ratio is no more than 43 percent.
What not to say when applying for a mortgage? ›
Here are some crazy things would-be home buyers have said to lenders, and why they're cause for concern.
- 'I need to get an extra insurance quote due to … ...
- 'I can't believe how much work the house needs before we move in' ...
- 'Please don't tell my spouse what's on my credit report'
Common reasons for a declined mortgage application and what to do
- Poor credit history. ...
- Not registered to vote. ...
- Too many credit applications. ...
- Too much debt. ...
- Payday loans. ...
- Administration errors. ...
- Not earning enough. ...
- Not matching the lender's profile.
Check these ten steps before you venture out to your mortgage broker and you'll be ahead of the game!
- Start with your credit report. ...
- Then, get things in order. ...
- Do your homework. ...
- Be realistic about what you can afford. ...
- Understand how lenders operate. ...
- Decide how you'll finance it.
To give context, a typical household only brings in about $81,000, Zillow researchers say. Homebuyers in Charlotte need to make $111,051 to afford a mortgage, which is nearly double what it was four years ago: Income needed to afford a mortgage in 2024: $111,051. Change in needed income since 2020: $55,239.
Does North Carolina offer a first-time home buyer program? ›
The NC Home Advantage Mortgage program offers stable, fixed-rate mortgages and up to 3% in down payment assistance for eligible first-time and move-up home buyers. It also offers a special $15,000 down payment assistance option exclusively for first-time buyers and military veterans who meet additional criteria.
At what age is it harder to get a mortgage? ›
The upshot is that if you're over the age of 62, you're almost 30% more likely to get rejected for a standard mortgage.
What is the 5 year rule for mortgages? ›
The 5 year rule for home ownership refers to the requirement that individuals must have owned and used their home as their primary residence for at least 5 consecutive years out of the last 8 years in order to qualify for certain tax benefits, such as the capital gains exclusion.
Can you get preapproved too early? ›
There are nearly no adverse effects from getting pre-approved too early. The only slight risk is that your credit score drops – less than five points, says MyFico. Your credit score could drop if your lender pulls a new report every 90 days, so ask your lender not to pull credit again until you've found a house.
What is meant by the 20% down rule? ›
Typically, mortgage lenders want you to put 20 percent down on a home purchase because it lowers their lending risk. It's also a rule that most programs charge mortgage insurance if you put less than 20 percent down (though some loans avoid this).
Is there any downside to getting pre-approved for a mortgage? ›
A mortgage preapproval can have a hard inquiry on your credit score if you end up applying for the credit. Although a preapproval may affect your credit score, it plays an important step in the home buying process and is recommended to have. The good news is that this ding on your credit score is only temporary.
