Even though I have spent way too much of my time in the climate-controlled-indoors, I can tell the season has ended. The requisite back to school pics have flooded my newsfeed; I turned on the heat in my car yesterday morning; and I already hear rumblings of a "polar vortex."
The end of summer also means that the house buying season is coming to a close. And I'm still sitting in a rental. I have not given up hope, but the process has been a lot more difficult than I anticipated.
It's no secret that I am a proponent of Dave Ramsey's teaching. We budgeted and sacrificed and finished paying off all of our debt last year. Since then, we have been saving for a home.
Consequently, we have a zero credit score. I knew that this could make buying a home a little more challenging, but Dave tells me that it can be done without a problem!
I started the process by talking with a few local banks and mortgage companies. I was either turned away or given crummy options. I was repeatedly told that I need to build my credit and to "get a few credit cards and come back in six months." The professionals passed me around like a hot potato that no one wanted to deal with.
This was discouraging but not all that surprising. So I called Churchill Mortgage, the company that Dave Ramsey advertises as specializing in no-credit-score mortgages. The man that answered the phone was somewhat helpful. They can do manual underwriting for no-credit-score mortgages, but they do not start the process until I have a contract and an accepted offer for a home. Also, the interest rate on the mortgage would be at least 5%, which is more than a traditional mortgage.
I continued searching for properties that fit my needs and wants. I even made an offer on a home. It was countered, and I decided to let the offer die. I did not have my own realtor, and I was feeling increasingly uncomfortable about the realtor who was selling the home. He was pushy and left me feeling bullied. I caught him in at least one lie, and he was always saying that other people were making offers and interested in the home (which is still on the market now a month later).
So I decided to get my own realtor to help me in this process. Naturally, I turned to Dave Ramsey's Endorsed Local Provider (ELP) service for realtors. There is one in my area so I gave her a call. She stated that she would help me after I was pre-approved for a mortgage. My guy from Churchill confirmed that he cannot pre-approve me for any amount since I do not have a credit score, even though the Churchill Mortgage website advises that everyone should get pre-approved. This did not satisfy my ELP realtor, the one person who I hoped would understand my situation. So I found a bank that would pre-approve me, but they would only give me an adjustable rate mortgage with a crummy interest rate. By the way, that is not the type of mortgage that Dave Ramsey recommends.
For some reason, I went through with the pre-approval, hoping the ELP realtor would hear me out or give me a chance. Right after I was pre-approved, I called the ELP realtor. She told me that she would do some research on a house we were interested in and call me back. Apparently, she is really busy or something because I have not heard back from her.
I feel like I keep running in circles, and I'm not getting anywhere. I still believe in Dave Ramsey's principles, and I agree with Dave that the system is flawed. It doesn't make sense to me that having debt qualifies you to get more debt. But not having debt and actually having money, disqualifies you.
I do not regret paying off the debt. And I do not want to play the credit card game, trying to achieve the best credit score. But Dave makes it sound so easy. In reality, it has been difficult and time consuming! I can't get the mortgage that he recommends and work with the people that he recommends. Now, I feel stuck.
The dream of home ownership now seems elusive. I am confident that it will happen someday, just not this summer.
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