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Buying a house is difficult even when conditions are perfect.
That’s why lenders warn that any one wrong move along the way significantly lower your chances of being told ‘yes’ when seeking that long-term mortgage loan.
Local real estate agents tout that the market in the Houma-Thibodaux area is steady, despite a bit of a dip in activity throughout the oil field – the bread and butter of our area’s economy.
But with units available and work still chugging along, real estate seems to be holding firm.
That’s why lenders are free in offering advice to buyers: watch every financial move that you make, because anything that you do today can be held against you when seeking that loan.
“Most times, first-time buyers are not aware that good credit is a requirement for home loans,” said local broker Verna Thomas with First Choice Mortgage LLC. “I review credit reports with buyers and make suggestions about building and/or improving credit. There are also programs through some of the local religious and governmental agencies which provide training and counseling for potential buyers as well.”
But, of course, no one is perfect and almost everybody has a bump in the road or two that might take one’s credit score down a couple notches.
Thomas touched on a point that others hit as well. That is that there are people out there who can help.
Local broker and owner of Coldwell Banker South Coast Travis Griffin said that he encourages first-time, low-credit buyers to do their homework when searching for home-buying opportunities.
Griffin said several local programs are in existence designed to help folks get their lives on firm footing. One program he mentioned is offered through the United States Department of Agriculture and its Rural Development program, which seeks to assist low-credit buyers.
“They offer a no-money down financing program which allows sellers to contribute up to 6 percent of closing costs to buyers,” Griffin said. “In addition, the program also allows a buyer to borrow over 100 percent if the home appraises for more than the agreed-upon sales price, assuming the buyer needs additional cash to get the deal closed.”
Griffin said that there are strings attached to be eligible for the program. For starters, the home has to be located in an area that is designated as a “rural” area.
“But fortunately for residents of the Tri-parish area, most of our parishes are eligible for that based on location,” Griffin said. “It’s a great program and many buyers take advantage of it as it provides many flexibilities for individuals or families seeking to minimize immediate out of pocket costs while still being able to purchase a home.”
Thomas said that in addition to the Rural Development program, there are programs locally to give grants for buyers in need of help funding the purchase of a new home.
“Terrebonne Parish has a grant program for low-to-moderate income buyers,” she said. “And the
State of Louisiana has a grant program tor the same. Both of those help out in a big way.”
But perhaps the biggest and best way to get help in home buying is to not need anyone else’s assistance in the first place. Thomas said that could happen through sound fiscal decisions and other fact-gathering information that all potential homeowners should know.
She said potential borrowers must understand they should always pay all of their bills on time because lenders will have ways to check and make sure that they’re reliable.
Thomas also encouraged the use of credit cards – as long as the card’s owner is responsible and practices sound judgment.
“They are a good tool to use to build credit,” Thomas said. “But keep balances low and always pay on time.”
Thomas said that it’s also important to understand that being employed and having a steady flow of income is a must for approval. Folks who are unable to prove their income and that their work situation is stable are far less likely to be approved than others who may have been with a particular company or business for years.
“Job stability is very important,” Thomas said. “Especially when you’re starting out with the process. Try to stay with the job so that job stability can be established. Higher education and formal training for a job will assist with proving stability, even if longevity is not established.”
This local home is one of many currently on the market in the Houma-Thibodaux area. Real estate agents said this week that there are tips and tricks that can make loan approval likely.
Getting approved for a home loan isn’t easy – especially in tough economic times. But real estate agents and lenders offered tips this week, including using credit cards wisely as a way to boost credit.
