Posted on: 21st Dec, 2010 10:21 pm
hey everyone - quick question. i am 23 years old and am interested in buying my first home in the next year or so.
i am currently saving up enough money for my 20% down payment for a fixed rate but i am unsure of how long i need to be employed before i can qualify for a loan. after college i worked full time for about 6 months before starting my current job (been here for about 8 months now). how much longer do i need to wait before i should approach a bank to see if i qualify and not waste anyones time by doing it too soon?
i dont have any student loans or unpaid credit cards. the most recent credit check i had my landlord provided me with my credit score of 799.
let me know your opinion on my goal. mainly i want to have a property as an investment and for income tax savings
feel free to comment with opinions, tips, etc
i am currently saving up enough money for my 20% down payment for a fixed rate but i am unsure of how long i need to be employed before i can qualify for a loan. after college i worked full time for about 6 months before starting my current job (been here for about 8 months now). how much longer do i need to wait before i should approach a bank to see if i qualify and not waste anyones time by doing it too soon?
i dont have any student loans or unpaid credit cards. the most recent credit check i had my landlord provided me with my credit score of 799.
let me know your opinion on my goal. mainly i want to have a property as an investment and for income tax savings
feel free to comment with opinions, tips, etc
Hi timetraveler10
welcome to mortgage
the after college i worked full time for about 6 months before starting for about 8 months now the bank lone or the home lone, there are no credit card
thanks,
jay
welcome to mortgage
the after college i worked full time for about 6 months before starting for about 8 months now the bank lone or the home lone, there are no credit card
thanks,
jay
You may purchase a home anytime now and use your current income as long as your income is a base W2 salary.
If your job includes bonuses or commissions, you will need two years history of such income to use it to qualify
If your job includes bonuses or commissions, you will need two years history of such income to use it to qualify
Even though 20% down is a great compensating factor, you'll only be required to put 3.5% down through FHA.
thanks everyone for the reply. sounds like i will be able to qualify. even though i dont need to put 20% down, i would still like to use a fixed rate method. seems the most stable.
do you think that buying a home would be a good investment though? should i save up and wait a little bit longer to purchase a single family home as opposed to a condo? i am looking to purchase in california so my range will be around 250-350. should i wait and just pay more for a single family?
opinions?
do you think that buying a home would be a good investment though? should i save up and wait a little bit longer to purchase a single family home as opposed to a condo? i am looking to purchase in california so my range will be around 250-350. should i wait and just pay more for a single family?
opinions?
Hi Guest!
Welcome to forums!
I personally feel that a single family home is a better option compared to a condo. You can wait for some time and build up your savings in order to buy a single family home.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I personally feel that a single family home is a better option compared to a condo. You can wait for some time and build up your savings in order to buy a single family home.
Feel free to ask if you've further queries.
Sussane
Hi timetraveler,
All of the advice you'll receive, including mine, will be okay at best. It just sounds like you have a lot of opportunity right now. Really smart moves in your early 20's can be killer moves to help compound building wealth (and avoiding taxes) early.
Whether your income includes commission/bonus is absolutely important, but, yes, base salary would qualify today.
Single-families are probably a better investment, but their main benefit is being less risky. A condo's value immediately drops if others in the association default, if the dues jump higher, or if many of them decide to rent out their condos simultaneously. I bought my first condo at 24. I should have bought a single-family.
My opinion; 20% may not be the best idea. With your credit scores, you'd have a great single-premium mortgage insurance option at 10% down. I'm not sure if you're a saver (sounds like it), but 15 year FHA @ 10% down might trump waiting until you have 20%. If your employer has a great stock program or something else like that, it may not make sense to put down any more money than necessary. This is that "I have no idea which idea is best for you, but you probably have 10 good ones" disclaimer.
Net-net, you probably have more options than we have space to reply in a forum. That's probably good. Easy answers usually mean your options are limited.
Best,
Chris
------------------
Chris Richter
Senior Mortgage Planner
Luett Mortgage Group, a production unit of Wintrust Mortgage
773-931-2424 - direct
crichter (at) luettmortgagegroup.com
http://www.luettmortgagegroup.com/
All of the advice you'll receive, including mine, will be okay at best. It just sounds like you have a lot of opportunity right now. Really smart moves in your early 20's can be killer moves to help compound building wealth (and avoiding taxes) early.
Whether your income includes commission/bonus is absolutely important, but, yes, base salary would qualify today.
Single-families are probably a better investment, but their main benefit is being less risky. A condo's value immediately drops if others in the association default, if the dues jump higher, or if many of them decide to rent out their condos simultaneously. I bought my first condo at 24. I should have bought a single-family.
My opinion; 20% may not be the best idea. With your credit scores, you'd have a great single-premium mortgage insurance option at 10% down. I'm not sure if you're a saver (sounds like it), but 15 year FHA @ 10% down might trump waiting until you have 20%. If your employer has a great stock program or something else like that, it may not make sense to put down any more money than necessary. This is that "I have no idea which idea is best for you, but you probably have 10 good ones" disclaimer.
Net-net, you probably have more options than we have space to reply in a forum. That's probably good. Easy answers usually mean your options are limited.
Best,
Chris
------------------
Chris Richter
Senior Mortgage Planner
Luett Mortgage Group, a production unit of Wintrust Mortgage
773-931-2424 - direct
crichter (at) luettmortgagegroup.com
http://www.luettmortgagegroup.com/
Well said, Chris, especially concerning the "easy answers." TT, I'm in agreement with what I've read, and also opine that a single family home is likely to be a better investment for you. Of course, your purpose in purchasing ought not to be as investment, but because you want to own your home. If you count on the "cash cow" that comes from equity in the property, you'll be saddened if what we've seen in the recent past continues (declining values, problem loans that affect everyone else as well, etc.).
You seem like you have a good idea of where you're going, what you want, and you've received some reasonable answers to your questions. I wish you well in your endeavor.
You seem like you have a good idea of where you're going, what you want, and you've received some reasonable answers to your questions. I wish you well in your endeavor.
