EP 9 - Home Loans with Connie Rolen with Bank 7 - a podcast by Brian Cook And Kindra Cox

On the January 23 2020 episode of The Brian and Kindra show, they discussed the lending portion of buying a property with Connie Rolen of Bank 7, Woodward, OK.  Connie has over 30 years of experience in the mortgage industry.  Brian and Kindra have over 30 years of combined real estate experience and have closed over 1,000 transactions.  

First things first, it’s nearly impossible to discuss obtaining any loan without discussing credit scores!  Obviously, the higher the credit score the better!  Connie recommends monitoring your credit score.  Many credit card companies today have programs that allow you to monitor your credit score monthly.  This is very helpful so that one can be on the lookout for fraudulent activity.  It is very important to check credit annually at the very least.  Many people use free websites such as creditkarma.com or annualcreditreport.com.  Once the credit report is received, someone knowledgeable in credit scores can review the report and offer advice on what should be paid off or paid down or even if an item can be ignored temporarily.  Currently, a credit score of 600 is sufficient for some loans.  The best case is 740 or above because that will get you the very best interest.  One other tip is not to max out your loan potential.  The perfect scenario is to keep your credit cards at 30% of their limit or less. 

Another credit concern when buying a home is your debt to income ratio.  The debt to income ratio is your monthly payment divided by your monthly gross income.  This does not include your rent or utilities.  For example if a buyer has $1,000 monthly gross income and has $500 in monthly payments, they have a 50% debt to income ratio.  Connie shared that it isn’t impossible to obtain a home loan if your income to debt ratio is greater than 43%, but that maximum figure is the best if possible.  

Brian and Kindra were very excited to talk to Connie about what Brian calls the ‘20% Down Myth’.  Many buyers are under the false impression that home loans strictly require 20% down.  Great news!  This is absolutely wrong!  In fact, Connie shared the majority of home loans she makes are not 20% down payment at all!  Kindra and Brian frequently sell homes with FHA loans (3.5% down payment), USDA or Rural Development loans (0% down payment) and VA loans (0% down payment).  In addition to these low down payments, the buyers and sellers can negotiate for the seller to pay up to 6% of the purchase price toward the buyers closing costs.  There are also conventional loans that can be obtained with 3%, 5% or 10% down.  It is very important to sit down with a knowledgeable lender to discuss the best options for each scenario.  

Hopefully, this information will be very helpful to you!  Are you ready to buy your next property?  As always ask your Real Estate Professional to assist you as you navigate the search to find a lender and then in your new home purchase! 

Bank7.com

Brian Cook - 580-334-2303
Kindra Cox - (580) 216-0090
www.TheBrianandKindraShow.com
www.DiscoverWoodward.com
www.SeeMe4Homes.com

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