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Closing My Zero Down Mortgage With Fair Credit Score

Typically what happens at closing is:

  1. The buyer (or his bank) delivers a cheque for the purchase price.
  2. The seller signs the deed over to the buyer, and gives him the keys.
  3. A title company, lawyer or civil law notary registers the new deed with the local land registry office.
  4. The seller receives a cheque for the proceeds of the sale, less closing costs and mortgage payouts.

On the Eastern side of the US, settlement (as closing is often called) takes place on a specified date and time during which all parties (usually including the agents involved) meet at a settlement company presided over or supervised by a lawyer.

I feel that the most important facet leading to a smooth closing is selection of the correct property. Although it took me some months to finally encounter a property which I felt connected to, the process was simply an awareness that there was a community and I was a part of it.

After finding the “dream home”, it became obvious that I needed to qualify for a mortgage program

I had an idea of a company which had program offerings which I matched up to. Little did I realize that my trip to Florida in March 2006 had put me in touch with a person who had mentioned the programs.

Back on Day2 of the Mortgage Broker course we had an instructor (Mr. Bill Bates) who had mentioned that his company (First Franklin) had programs for borrowers who did not wish to prove their incomes.  As I examined program after program, I kept returning to the thought of how easy I felt qualifying would be using the First Franklin “Stated Income” program.

Would my credit score (652)  match up with a zero down and no proof of income?

It appears that the “652” matches a “zero down"program; but, I can’t prove enough income.

Suddenly this seems surreal, I haven’t earned squat in 2years, and my credit is so-so, and I’m looking at a dream home without having any cash down?
Come on ...get back to like this don’t happen, or do they?

For an average house, the tasks seem arduous but for a dream home…I am prepared to do whatever it takes.

When I heard that my lender had accepted my application and had informed the title company that it was “clear to close”, I was ecstatic.

We met with the seller and her real estate people to finalize the transaction on the purchase of the beautiful property. 

I had been informed a couple days prior that I would have to bring $2,481 to cover prepaid property taxes and homeowners insurance.  I had the cash in hand as we drove up to do the final paperwork. 

First miracle: don’t need the $2,481 it was mine to redeposit in my bank account. (Seems as a condition of approval, my lender would not allow me to bring funds to close. It wouldn’t be socially acceptable for me to argue with that condition so I quickly agreed.)

Second miracle: Meeting the seller of this property was joyful and profound. What she shared with me was that her late husband was a noted psychologist and had started a recovery center here in Grand Rapids known as: Project Re-hab.

I shared with her that I had come into recovery 19 years ago and that I felt this home purchase was truly gods gift to me as I allowed the presence of a “higher power” to take my will and to do His will.

Many stories were exchanged and when we finally finished our paperwork there were tears in about 4 or 5 sets of eyes.  It was obvious that some higher energy source had brought us together at this crossroads and that the blessings from above had come to fruition.

I am truly apprecitive of the gift of this fine home, the benefit of having a sucessfull son and daughter in law and for all the miracles which took place for this process to unfold.

So what does this have to do with the real estate closing? Wikipedia defines closing as:

“Closing is a sales term which refers to the process of making a sale. Specifically, it refers to reaching the final step, which may be an exchange of money or acquiring a signature. Salespeople are often taught to think of targets not as strangers, but rather as prospective customers who already want or need what is being sold. Such prospects need only be “closed.”

I don’t really view this procedure as a “closing”.  It appears to me that the miracles began to unfold as a result of a sense of community and a willingness to not be frantic or greedy.

Times are tough and sometimes opportunities are had to come by.  What worked for me was to casually shop, get a sense of the market, and make a selection based on sound information and the willingness to succeed.

By Jim Jump To Comments
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1 Responses to "Closing My Zero Down Mortgage With Fair Credit Score"

    Condominiums says:

    While I agree that all of this is all well and good (we don’t need a mortgage meltdown like what happened in the US), it still means that many first time home buyers, especially in Vancouver, are going to encounter more difficulties obtaining a loan. There needs to be more options out there for lower income people!


    Posted on 01/17 at 1:38 AM

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