Local Buying Tips

Most banks require a 640 credit score for you to get any type of loan. I do have a few banks that can do a 580 FHA loan for extenuating circumstances. You have to write a letter explaining why your credit score is lower than the normal requirement & instead of sending your paperwork through one underwriter, it goes through two. It doesn't cost anymore & the rates aren't much higher. But you really need to have a good game plan in place to improve your financial situation to get this type of loan approved. A lot of people go through hard times..... Now, we have a bank that actually understands & is willing to give you a chance to prove yourself.

There are different types of loans. The most popular one is an FHA loan that requires 3.5% down. There is also a no money down rural development loan for areas outside of the Jonesboro city limits. You have to make less than $75,000 for a family of 4 or less and make less than $98,000 for a family of 5 or more. Both of these loans can not be used for a foreclosure or a house that is sold AS IS. You can use an in-house bank loan for those properties. This requires 5% down but the closing cost are only $1500 instead of being 3-4.5% like with FHA & rural development loans. Most sellers are willing to help you with your closing cost if your offer reflects the money they will have to pay out of pocket. Another popular loan is a conventional loan. This one requires 20% down but doesn't have monthly mortgage insurance which would cost $85 a month on a $100,000 loan. In-house loans don't usually have this either. You can pay as little as 3-5% down but you would be paying the mortgage insurance until you paid down 20% of the loan.

I recommend all my clients have access to a smart phone or computer get Credit Karma. It is a free app that tracks your credit score on all three credit reporting agencies so if you take a hit because of non-payment or when someone applies for credit in your name....you get an alert & can take care of it. There have been so many big corporations that have been hacked lately & had our personal information exposed....it is just good to know what's going on with your credit instead of waiting until you are ready to buy a home or a car.

If you would like tips on how to improve your credit score, send me an email to stephaniemcd89@yahoo.com & I'll be glad to send you a flyer.