Teel Realty Serving Northeastern Pennsylvania

Realtor Michelle Rowe listens to mortgage originator Harry Abel at Teel Realty's May 30 seminar on How to Get a Mortgage. The one-hour event was the first in a series.

The kick-off presentation in Teel Realty’s seminar series drew a roomful on May 30 as mortgage originator Harry Abel walked home-shoppers through the process of applying and qualifying for a home mortgage.
Abel is with Bank of America’s home loan unit, working from their Easton office. Teel Realty is a full-service real estate agency serving Northeastern Pennsylvania, with its main office located in Mount Bethel, Pa.

Abel shared advice for those beginning the home-buying process and who expect to apply for mortgage financing, which is nearly all homebuyers. For instance:

• Ratios of debt-to-income are important. One of the biggest stumbling blocks home-shoppers run into is learning that their car payments count against them when lenders qualify them for a mortgage. “That $500 or $600 per month doesn’t seem high when you’re living with mom and dad,” Abel said. “If you’re thinking about a house, do the home-shopping first.”
• While lenders have become more conservative in general, debt-to-income ratios could range as high as 45%, Abel said. “Some customers are comfortable with that. Other customers would prefer to be closer to 30%”
• Those without credit histories should seek to establish credit. Possible avenues include opening a checking account, applying for a loan using savings as collateral, applying for a loan with a co-signer or by applying for a credit card, even if it’s a card that secured by a deposit. But Abel warned that potential home-buyers should remain cautious about exercising that credit. He cited the example of someone with a secured credit card with a $500 credit limit. “If you’re putting $450 a month on that card, it will negatively affect your credit.”
• Borrowers should remain conservative, right up to closing. “The first year I was in business I had a buyer go out and spend $30,000 on furniture before closing,” he said. “The lender pulled their credit and they didn’t get the house.”
  “We’re very pleased with this seminar series and it’s been well received,” Terry L. Teel, broker for Teel Realty, said. “We’re planning future presentations on home buying, pricing trends and more information about home finance.”

The event was co-hosted by realtors Denise Paraschos and Michelle Rowe.

To be notified of future events, send an email to teel@epix.net.