Posted on: 21st Jan, 2010 08:10 am
my husband and i live in houston texas and feel that we are ready to purchase our home for the first time. we filed chapter 7 bank in 2005 due to lay off and schooling, but we are both making a descent income together around 125,000 annually with low debt @ this time. recently we paid all our credit cards down, and available about 10,000 in credit. we are still working to get our scores to @ least 700 each before applying....our median score is 680 and 690. we would like to take advantage of the tax credit for first time homebuyer's by april. we also plan to have @ 10,000 available for downpayment and apply for grant assitance to help with closing cost. my biggest question is, does all this sound logical? is it worth taking advantage of the tax credit by april or should we wait to get our score higher for better interest rate? perhaps, purchase in april at lowest rate poss with our type of credit and refinance in future to get lowest rate? i've been doing lots of homework on this, just need some expert advice. i would greatly appreciate your expert advice.
, thanks!
, thanks!
nurse, it makes a great deal of sense for you to purchase now - after all, we are most unlikely to see the $8000 tax credit again. the april 30 deadline concerns the date by which you must be under contract to purchase. the loan itself would need to close by june 30.
i think you'd be great candidates for an fha loan, in which case your down payment amount is far less of an issue concerning the interest rate. at the level score you have now, you'd still get the best available rate on an fha loan. conventional loans would penalize you slightly.
go for it, in my opinion. as for the bankruptcy, that was, fortunately, 4 years ago, but you'll probably be asked for an explanation as to the circumstances that precipitated it. be prepared for that - get your thoughts in order now. it doesn't have to be flowery, but straightforward and to the point. it may help also to make mention of your earnest efforts to repair the issues of the past and that you're well aware of the need to pay your bills promptly. underwriters like to see that you're contrite and intentional.
i think you'd be great candidates for an fha loan, in which case your down payment amount is far less of an issue concerning the interest rate. at the level score you have now, you'd still get the best available rate on an fha loan. conventional loans would penalize you slightly.
go for it, in my opinion. as for the bankruptcy, that was, fortunately, 4 years ago, but you'll probably be asked for an explanation as to the circumstances that precipitated it. be prepared for that - get your thoughts in order now. it doesn't have to be flowery, but straightforward and to the point. it may help also to make mention of your earnest efforts to repair the issues of the past and that you're well aware of the need to pay your bills promptly. underwriters like to see that you're contrite and intentional.
With FHA a score may not matter as it would to a conventional loan (depending on the score level)
It would be BETTER to by a home at it's low price now with your score...than refinance when your score goes up and you have built equity in the home.
It would be BETTER to by a home at it's low price now with your score...than refinance when your score goes up and you have built equity in the home.
OMG! banker, where've you been? i thought you had fallen off. welcome back, and i hope we can see some more of your contributions on a more regular basis again.
sounds like you've been making smart, steady decisions and it's time for them to bear fruit. Go ahead any grab a home now if you can. take advatgage of the good rates and other incentives like tax credits that are available.
If you're interested in trialing your ability to get finance go and get a few online quotes and see what you can get. As Banker mentions, even if you have restrictions or added cocts for low credit scores, you can always refinance later and get rid of them when your scores have gone up. honestly if you have the means to do so, now is a great time to act.
If you're interested in trialing your ability to get finance go and get a few online quotes and see what you can get. As Banker mentions, even if you have restrictions or added cocts for low credit scores, you can always refinance later and get rid of them when your scores have gone up. honestly if you have the means to do so, now is a great time to act.
i don't have a whole lot of confidence in online quotes to be the be-all and end-all of shopping for a mortgage loan. first and foremost, you need to find a lender with whom you can build a relationship. if you can't be sure that someone is above board with you (and how do you do that by internet?), you can't be sure what you're really getting.