The Edmond Sun

Business

August 24, 2012

What does it take to buy a house?

Mortgage rates are near historic lows. Home prices have crashed from their highs four years ago. It seems now would be a great time to buy a home, especially since rents are rising.

There's just one problem. Qualifying for a mortgage is harder than it has ever been.

Back during the housing boom, mortgage brokers would write a mortgage often for little or no money down. If you had a checkered past when it came to employment, no-documentation loans were available. You told them how much money you made and they took your word for it.

As a result many consumers purchased homes they really couldn't afford. It was one of the catalysts of the credit meltdown.

Cautious lenders

Now lenders are cautious -- maybe overly cautious. According to Kiplinger, they want to see the “three Cs.” They look closely at your credit history, they examine your capacity to repay the loan, and verify your collateral.

That means to buy a house, you need a strong credit score -- 720 or above. You need a good job and the prospect that it will continue. And you need to bring a large chunk of cash to the settlement table. In most cases, lenders want borrowers to put down at least 20 percent of the purchase price.

With the average home costing over $180,000 that can be a lot of money. Just a few years ago buyers could put down five percent or less. As late as 2007 some lenders were offering loans at 105 percent of the purchase price. Those days are long gone.

Even if you happen to have 20 percent of the purchase price in cash, that's no guarantee you will be approved for a mortgage. The lender wants assurances that you will be able to continue making the house payments each month. They look at your present job and what your prospects are for the future.

Text Only
Business
  • UCO campus 3.jpg University of Central Oklahoma recognized as having friendly work environment

    The Chronicle of Higher Education named the University of Central Oklahoma as one of the “2014 Great Colleges to Work For.” Central is the only higher education institution in the state recognized on the list and one of only a handful of institutions in the nation given the distinction of being named to the Honor Roll for being cited most often among all the recognition categories.          
    Central joins Duke, Baylor and Notre Dame on the list of the 10 universities named to the large institution honor roll.

    July 21, 2014 1 Photo

  • Council approves funds toward ADA update

    City Council members have approved a $398,800 professional services contract with Accessology, a McKinney, Texas, firm, to establish an Americans With Disabilities Act transition plan for the city.
    Title II of the ADA requires state and local governments to make their programs and services accessible to persons with disabilities. It includes access to government facilities, programs and events and relevant policy changes.
    Accessology was selected out of a pool of five finalists by a five-member committee to create Edmond’s plan. The firm will partner with Kimley-Horn and Associates, a design consulting firm located in North Carolina.
    Edmond’s last ADA transition plan was created in 1992.

    July 21, 2014

  • Panel approves jail services agreement

    City Council members have approved renewal of the city’s jail services agreement with Oklahoma County for prisoners incarcerated at the county jail on city charges.
    The current annual agreement expired June 30. It provides the feeding, care, housing and upkeep of said prisoners. Edmond uses the county jail when the city jail is at capacity.
    The sheriff’s office proposed a slight increase from $46.25 to a $46.50 daily rate per prisoner. City staff said the current agreement is working satisfactorily and believe the proposed rate is reasonable. The new agreement took effect July 1. The city can hold prisoners in its current jail  up to 10 days; a new jail with 10 male and five female cells will be available inside the new Public Safety Center next year when the facility opens.

    July 21, 2014

  • Panel establishes 911 phone rate

    City Council members have established the rate for the 911 emergency phone service fee for calendar year 2015
    Council members set the rate at 3 percent of the recurring charges as designated by the tariff for exchange telephone service or its equivalent within Edmond beginning Jan. 1, 2015.
    Fees collected by wireless and voice over Internet protocol companies are established under a separate statute. To continue collection of the locally authorized service fee on landline phone bills, local governments must approve a resolution on an annual basis to set the actual fee.
    Governments must also through the Association of Central Oklahoma Governments notify the appropriate incumbent local exchange carrier and competitive local exchange carrier phone companies by Sept. 1, 2015.
    ACOG recommended for calendar year 2015 to maintain service fees at their current level of 3 percent.

    July 21, 2014

  • Council approves $2.5M extra for utility

    City Council members have approved the transfer of a $2.5 million appropriation for Edmond Electric.
    The action was needed due to higher natural gas prices. Those increased prices caused wholesale electric purchase costs to exceed the department’s budget estimates for Fiscal Year 2013-14. To cover the increased costs, a transfer of funds from the “Transfers” category to the “Other Services and Charges” category was necessary.
    It will maintain state law requirements and not increase Edmond Electric’s budget.
    The action occurred during Monday’s meeting and was approved unanimously.

    July 21, 2014

  • The Escape Edmond entrepreneurs sleuth their way to success

    Tripadvisor.com led Andrew Gipson to an industrial complex outside of Dublin, Ireland, about a year ago. The recent University of Central Oklahoma graduate was in the midst of an extended stay in Australia and the United Kingdom when he walked through the doors of XIT Live Escape Adventure Game. According to Tripdadvisor, it was the top attraction in Ireland. He had to go.
    An hour later, Gipson, 24, exited the facility inspired.

    July 19, 2014 1 Photo

  • McAlister’s Deli sets ‘Free Tea Day’ for July 24

    McAlister’s Deli, a leading fast casual restaurant, will celebrate its sixth annual Free Tea Day on July 24.

    July 19, 2014

  • Steffen and Farrow Steffen and Farrow celebrates 40th anniversary

    Steffen and Farrow Orthodontics recently had a ribbon cutting at its Edmond location, 1601 S. Boulevard, to celebrate its 40th anniversary.

    July 19, 2014 1 Photo

  • Local resident wins free fuel from Cenex

    A local resident has received a special thank you for his contributions to the community. Ronald Balderson of Edmond, was selected to receive free fuel from Tanks of Thanks, a program that rewards people who do good deeds to help make their community just a little bit better.

    July 19, 2014

  • Former mayor encourages Leadership Edmond participation

    Leadership Edmond will commence its 30th class with a two-day overnight retreat on Aug. 25-26.

    July 19, 2014

Stocks