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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
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.
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.
What is the income limit for down payment assistance in NC? ›
To be eligible for the NC Home Advantage Mortgage program, you must: Purchase a home in North Carolina. Make the purchased home your primary residence within 60 days of closing. Have an annual income below $134,000.
What is the $15000 NC home advantage program? ›
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 first time home buyer tax credit in NC? ›
The NC Home Advantage Tax Credit enables eligible first-time buyers (those who haven't owned a home as their principal residence in the past three years) and military veterans to save up to $2,000 a year on their federal taxes with a Mortgage Credit Certificate (MCC).
What is the DTI for NC home Advantage Mortgage? ›
DTI - Debt-to-income ratio, which cannot exceed 43% for any N.C. Home Advantage Mortgage™.
What is the minimum credit score to buy a house in NC? ›
The minimum credit score for an FHA loan is 500. For a conventional loan, it is 620.
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 easiest type of mortgage to get approved for? ›
FHA, VA, and USDA loans are often more accessible for individuals with lower credit scores or smaller down payments. However, other factors such as your income stability, employment history, and debt-to-income ratio also play a crucial role in the approval process.
What is the NC Homeowners Grant? ›
Eligible applicants can receive up to $30,000 of the sales price in down payment assistance in addition to receiving closing costs assistance up to 5% of the sales price. The program will also offer homebuyer education and counseling.
If you use an interest-bearing loan, you could spend more paying it off than you would have if you didn't use down payment assistance. You could overextend yourself. Down payment assistance may allow you to purchase a more expensive home, but it could add financial stress down the road. Closing could take longer.
How do you qualify for a housing voucher in NC? ›
Eligibility is determined by your local public housing agency. Your family's income must be 50% or less of the median income for your county. Public housing agencies are required to distribute 75% of vouchers to applicants whose income is less than 30% of the median county income.
What is the CARES program in NC? ›
CSBG NC CARES Assistance is non-entitlement aid provided to individuals and families who have income below 200% of the poverty rate, and whose economic circ*mstances have been adversely impacted, or has immediate needs due to COVID-19.
What is the NC home modification grant? ›
What does this program do? Also known as the Section 504 Home Repair program, this provides loans to very-low-income homeowners to repair, improve or modernize their homes or grants to elderly very-low-income homeowners to remove health and safety hazards.
What is the NC relief payment? ›
The extra credit grant is a $335 payment to you from the State of North Carolina. If you qualify, you will receive a $335 payment. The payment is to help families with qualifying children in North Carolina by providing economic support to assist with virtual schooling and child-care costs during the COVID-19 pandemic.
What counts as a first time buyer? ›
In general, a first-time buyer is someone who is purchasing a property for the first time and does not already own a residential property. However, let's delve deeper into specific scenarios that may affect your eligibility as a first-time buyer.
What is the home Buyer Advantage Program in Charlotte NC? ›
The NC Home Advantage Mortgage program offered by the NCHFA, provides financial assistance to home buyers in Charlotte and other areas in North Carolina who need help with their down payment and closing costs.
How to buy a house in North Carolina? ›
- Step 1: Save for a down payment. 🔑 Key takeaway: ...
- Step 2: Find a real estate agent in North Carolina. ...
- Step 3: Get pre-approved for a mortgage. ...
- Step 4: Choose the right location. ...
- Step 5: Start house hunting in North Carolina. ...
- Step 6: Make an offer. ...
- Step 7: Inspections, appraisals, and financing. ...
- Step 8: Close on your new home!
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