Imperfect credit? Be encouraged with this success story.
Two days ago, I closed a loan for a lovely couple whose credit suffered all due to an uninsured driver slamming into their car so hard, it knocked the husband unconscious and threw them both in the hospital, fighting for their lives.
Naturally, they could not carry on with their business during this time, so they ended up with a state tax lien and a medical collection on your credit report.
Now that they’ve recovered and are back to work, they were approved for a conventional loan (better than FHA).
In addition, because they had not owned a home in the last three years, they got a first-time homebuyer’s program with a .125 lower interest rate.
- Down payment required was 3 percent; although, they chose to put down more to get a smaller loan and payment.
- They did not have to pay off the collection account.
- They did have to pay the state tax lien, and that was easily done by adding to the cash-to-close. The closing agent collected the funds and paid the state at closing. This way, there was no complication with getting the proof that it was paid, and it saved them the hassle of doing it early.
The loan closed in only 28 days. Pretty good for our busy market!
Better Interest Rate
As a loan officer for a full service mortgage lender, I have the option of using our own company money or brokering out the loan to a wholesale lender. By brokering out, they got an interest rate of 3.875% rather than 4.25%. This saves them $37 per month and $444 per year.
Congratulations! They are in their own home just in time to enjoy the gorgeous autumn leaves and upcoming Thanksgiving holiday.
If your credit has some dings, you may still be able to become a home owner. If you’re in WA or CA, I’d be happy to take a look for you. Contact me here. If you’re in a different state, check in with your local full service mortgage lender who will have more choices for you than a big, stuffy bank or fussy credit union.