Traci Dellinger

No, most loan programs don’t require 20% down. In fact, the USDA loan is a zero down program and a conventional loan only requires as little as 3% down. There are also down payment assistance programs that many of my borrowers use to help with down payment and closing cost. In fact, many of borrowers get money back at closing.

Different loan programs require different credit score minimums. For instance, if you need the 15K down payment assistance offered by North Carolina Housing Finance Agency, they require a minimum 640 credit score. Other loan programs, like FHA, will typically go down to a 580, while a conventional loan wants a 600 score or above.

Most definitely “YES”. You need to know what type of financing you qualify for and how much house you can afford before you hire a Realtor to start your home search. You wouldn’t want to get your heart set on a home that might be out of your budget.

When you apply for a mortgage loan,  a “hard” credit inquiry may be necessary, however, credit inquiries are only 10% of your overall credit score calculation.  More emphasis is placed on Payment History (35%), Amount Owed (30%), and Length of Credit (15%).  Numerous hard inquiry request may lower your score.

Yes, if you are fresh out of school/college and just starting your career, you may still qualify for a home loan provided you aren’t newly self-employed and will be paid hourly/salary with income taxes being withheld.  The same applies if are switching jobs as well.  Because everyone’s situation could differ, give me a call to discuss your circumstances.

Yes, there are many down payment assistance programs available for first time home buyers. Some city and counties even offer down payment assistance programs to qualified buyers.  Reach out to me to discuss what programs may be available to you.

Absolutely it matters.  Many online and out-of-state lenders don’t participate in state and local down payment assistance programs which could mean missing out on thousands of dollars in assistance.  Don’t choose a lender based on an advertisement, instead, check online for reviews and know who you are dealing with.

The #1 mistake I often see is carrying high balance on credit cards.  Even if you pay the full balance each month, the rule of thumb is to never charge more than 25% to 30% of your credit limit at any time during the billing cycle.  Your balances to your credit limit can significantly impact your credit score.  Before paying cards down, closing accounts, moving funds around or opening new accounts, talk with your local loan officer first.