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turkish
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hi all. need some tips.

I want to set myself up for success to buy a home in about 10 months. I am just perpairing myself to do it right and not be rushed into it. my scores average at 695. I have some repairs im working on in the meantime. 3 negatives are 30 day late payments on 3 credit cards, but they have all been over 2 years or more. I have a 10,000 car loan. and about 4,500 in cc balances. I know the cards will be paid off in a few months. what do I do about the car loan. I want to get approved for at least 350,000. My 2004 w-2 reports 37,000(but I was off for 3 months) and I now have a promotion and make below 4,000 and sometimes more in a month. I have been working at this job for 6 years. HOw should I handle my situations. I plan on paying off cc balance and get that out of the way. After that should I save a good amount of money or should I try to reduce my car loan balance too. I know this is long but man I really want to learn some tips and treaks if you will on how to handle this right and make my dreams come true. So I expect in 10 months to be have my score 720 or plus no cc bills and about 9500 max on car loan if I pay of just the min every month.

thanks all

out

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With a 720 score, you can be set up to purchase a home that is 350K, but Iwould not advise it, with your income, and the mention that you were laid off for 3 months last year. To qualify for a conventional/prime rate loan, you will need 1) to have 5% down, 2) an income of about 6000-6500 per month, 3) in addition to the down payment, 2 or 3 months of PITI (Principal/Interest/Taxes/Insurance) in assets.

To qualify for a sub-prime rate loan, you would need to have your PITI plus car payments and minimum credit card bills equal no more than 50% of your pretax income. You should figure your income to be more in the range of 37K per year, as you may be laid off again.

I would suggest that you try to have your first home be in the 200K range, for a number of reasons. One of them is that there are hidden costs to home ownership. Lawnmowers, utilites, upkeep, etc, that it will take you about a year to really "get a handle on". Start with something that will not be a stress to pay for, where you entire life is not spent saying "well, it would be nice to go on a holiday, but I have my house and car to pay for".

I am sure that this is not what you wanted to hear, but it is my (and amortgageman & the other LO's) goal to have successful home owners, and what makes a success in this field is not buying the max of what you can afford, but what you can pay for easily.

Charles

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  • 4 weeks later...

YOu have brought it to my attention that 350k may too much. I've decide to go with a 250k. My score is 694. I think I will have it over 700 after a pay of a cc that has a 2500 balance on 3000 credit limint and two other cc but that add up to 1500. I just need to know how to figure out which loan is best for me. Firstsource please guide me in for the landing here. Prices are going up really fast here in Virginia so I wana buy this summer. I will have money but I probably need it for closing so Im not sure but think i have to get a complete loan or something. I dont know if I should be getting a 100% or I dont know there 80/20 theres 80/15/5. Im just really not sure, but I need understand the different types of loand and be prepaid we I buy. MY girlf will be with me but not on loan, so she will be able to help a little with payments. She is going to school and studies and so its up to me to make this happen! Please help out. Your the best source I've got. If I get a were getting a place for 250k and had some money is it best to put down maybe 5% but then I may not have money for closing and the unknown. would it be best for me to not put money down!

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In your situation and area, you will probably need to consider an 80/20.

If you are close to the DC area, it is very hard to get any sales concessions price wise, but whatever reduction in price you can get, ask for it in the form of seller paid closing costs. All lenders will allow up to 3%, and most will allow the seller to give you as much as 6%. I would suggest that you look for FSBO (For Sale by Owner) properties. Those sellers normally will list for the full value, but since they are saving about 6% (no realtor involved) they should be willing to give you a little.

If your plans are that this is a "First Home", I would suggest that you have the loan be 2-3 years Fixed rate, amoritized over 30 years. Be careful to make sure that it does not adjust for the first 2 years: some loans are 6 month ARM's, They are lots cheaper rate wise, but you don't want to have to have increased house payments before you are ready to move. Also, I would suggest that you have the first be an I/O (Interest Only) It makes sense in your area, Your payments are lower so you can buy more of a home, and you will profit more when you are ready to trade up.

Hope that helps.

Charles

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definitely helping

I think I may have found a place but its not for sale by onwer. They are apartments that are being converted into condo's and they are in a good location and the price (250k) seems like I cant find anything better for what may potentially be bring the best profit too and I refuse to move further away from my job because traffic is bad here. So I what learn as much and make this condo happen and make it happen easy and Im the type of person puts my nose in everything so I wana how everything before I start. Thats why I may be asking some dumb question or writing on and on so please forgive me.

So this is what I have so far. Condo that 250k. IF they are converting and they seem to have a sales office on site do I need a realtor or can I just go solo and buy from office and maybe get a loan through them?

But looks like I will be doing 80/20 right.

And what my other option if i dont wana do I/O ? Or should I do I/O and add maybe pay more sometimes so that the extra money goes towards the principal?

What do you mean you say sales concessions price ???

So I should make sure that first 2-3 years is fixed? What happens to after the 2-3 years are up?

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so what should I do?

In your situation and area, you will probably need to consider an 80/20.

If you are close to the DC area, it is very hard to get any sales concessions price wise, but whatever reduction in price you can get, ask for it in the form of seller paid closing costs. All lenders will allow up to 3%, and most will allow the seller to give you as much as 6%. I would suggest that you look for FSBO (For Sale by Owner) properties. Those sellers normally will list for the full value, but since they are saving about 6% (no realtor involved) they should be willing to give you a little.

If your plans are that this is a "First Home", I would suggest that you have the loan be 2-3 years Fixed rate, amoritized over 30 years. Be careful to make sure that it does not adjust for the first 2 years: some loans are 6 month ARM's, They are lots cheaper rate wise, but you don't want to have to have increased house payments before you are ready to move. Also, I would suggest that you have the first be an I/O (Interest Only) It makes sense in your area, Your payments are lower so you can buy more of a home, and you will profit more when you are ready to trade up.

Hope that helps.

Charles

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