Posted on: 26th Oct, 2012 09:23 pm
i am looking into buying my first home very soon. i don't have bad credit (686), but i've also not had any type of debt in about 2 years. my cars are paid for, and all charge/installment accounts i had were paid in full as agreed upon. i have 3 released/closed tax liens due to an issue with the state dept of revenue (they failed to properly cancel it until this year even though i called to dispute it every year) but it still will show on my report for 10 years. i also found 3 small medical collections my insurance company was supposed to take care of 3 years ago. if i pay these off now, will it clear those up?
i'm interested in a fha loan, mostly due to the smaller downpayment. i know that mip will come into play because of that. the house i'm interested in is $100k, and i am willing to pay that much if any of my lower offers are rejected. i intend to call the agent tomorrow for a viewing of the property, and go to the bank monday for preapproval. does being approved for a $100k fha loan with $39k/yr income, 686 credit score, same job for 5yrs, and $0 debt sound feasible? the calculators can tell you stuff all day, but an actual person, who knows what they're talking about, telling you is different...
my girlfriend has a 890 credit score, but her name is still on a home loan from her first house (her ex-husband lives there now and pays the mortgage, he has yet to refinance to get her off it). what are the requirements when it comes to co-signers if i needed one? are there income requirements on the second party?
sorry so long, thank you for your help.
i'm interested in a fha loan, mostly due to the smaller downpayment. i know that mip will come into play because of that. the house i'm interested in is $100k, and i am willing to pay that much if any of my lower offers are rejected. i intend to call the agent tomorrow for a viewing of the property, and go to the bank monday for preapproval. does being approved for a $100k fha loan with $39k/yr income, 686 credit score, same job for 5yrs, and $0 debt sound feasible? the calculators can tell you stuff all day, but an actual person, who knows what they're talking about, telling you is different...
my girlfriend has a 890 credit score, but her name is still on a home loan from her first house (her ex-husband lives there now and pays the mortgage, he has yet to refinance to get her off it). what are the requirements when it comes to co-signers if i needed one? are there income requirements on the second party?
sorry so long, thank you for your help.
Its absolutely fine. First of all it is better that you clear out your outstanding medical bills before approaching the lenders. Secondly, since your credit report shows released tax liens, there is nothing to be concerned about with regards to securing a FHA loan.
However, speaking of the co-signer, he/she should have better credit score and monthly income than you in order to convince the lender that in case you default on the loan, the lender can get back his money from the co-signer.
However, speaking of the co-signer, he/she should have better credit score and monthly income than you in order to convince the lender that in case you default on the loan, the lender can get back his money from the co-signer.
Hi cmd!
Welcome to forums!
if your pay off the medical liens, then the updated status will get reported to your credit report. This will have a positive impact on your credit and will increase your scores.
With a good credit score and stable job and not much debt issues, I think it will be easier for you to get qualified for a loan. If you want to take help of a co-signer, then that person, too, should have a good income, stable job and good credit scores.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
if your pay off the medical liens, then the updated status will get reported to your credit report. This will have a positive impact on your credit and will increase your scores.
With a good credit score and stable job and not much debt issues, I think it will be easier for you to get qualified for a loan. If you want to take help of a co-signer, then that person, too, should have a good income, stable job and good credit scores.
Feel free to ask if you've further queries.
Sussane
Thanks for the replies! When talking to the Realtor we confirmed our thoughts that my girlfriend couldn't cosign anyway as she had been laid off in March and is now back in school while job hunting.
The first house we were interested in turned out to be a dud once we looked at it harder inside - needed a lot of work. We fell in love with another one the realtor brought us to that is asking $94k. We spend almost $1000/month right now renting an apartment, so we'd actually be saving money going in the buying direction judging by current rates and calculators. I'm about to send in the preapproval form to one of the referred lenders with our fingers and toes crossed because this whole thing is nerve-wracking!
My girlfriend has a check coming from cashing out a 401k she had at her previous employer, and we'd like to use that toward the downpayment in addition to other funds we have. Will that be a problem at all?
The house is a Fannie Mae repo, and we were given a flyer on the HomePath mortgage that includes funds towards renovations (it needs flooring redone, and paint). The market value was listed at $125k so we feel it will be a good investment for us, in addition to saving us money by no longer renting. We are not opposed to paying the full asking price if offers are rejected (we don't know how firm they are, being a repo), but would like some help with closing costs. The flyer said that the seller makes more concessions in regards to closing when it comes to a HomePath loan, but we are not sure how much/what that means. If anyone knows about that in more detail, it would be appreciated as well.
Thank you again!
The first house we were interested in turned out to be a dud once we looked at it harder inside - needed a lot of work. We fell in love with another one the realtor brought us to that is asking $94k. We spend almost $1000/month right now renting an apartment, so we'd actually be saving money going in the buying direction judging by current rates and calculators. I'm about to send in the preapproval form to one of the referred lenders with our fingers and toes crossed because this whole thing is nerve-wracking!
My girlfriend has a check coming from cashing out a 401k she had at her previous employer, and we'd like to use that toward the downpayment in addition to other funds we have. Will that be a problem at all?
The house is a Fannie Mae repo, and we were given a flyer on the HomePath mortgage that includes funds towards renovations (it needs flooring redone, and paint). The market value was listed at $125k so we feel it will be a good investment for us, in addition to saving us money by no longer renting. We are not opposed to paying the full asking price if offers are rejected (we don't know how firm they are, being a repo), but would like some help with closing costs. The flyer said that the seller makes more concessions in regards to closing when it comes to a HomePath loan, but we are not sure how much/what that means. If anyone knows about that in more detail, it would be appreciated as well.
Thank you again!
Hi cmd!
Welcome to forums!
I don't think that the 401k money will create any problem if you use it as down payment. Nevertheless, before using it as a down payment, you can have a word with the lender and take his opinion.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I don't think that the 401k money will create any problem if you use it as down payment. Nevertheless, before using it as a down payment, you can have a word with the lender and take his opinion.
Feel free to ask if you've further queries.
Sussane
This is "cmd", I registered since I've been posting quite a few times now.
I got called back by the lender today, he said the only issue he found was that my credit scores aren't being calculated because of lack of debt history over the last 2 years or so. I've never had a credit card, it's only really been cars that have since been paid off, and a tool company bill that was closed a couple years ago when my tool box was paid off. When I pulled my own annual free credit report last week, it showed the TU score (how I knew what my credit was), but no Experian or Equifax. He said that if they can get two accounts open to put on the credit report, it should be easily fixed within 30 days...
Since we really don't want to let this house slip away (we notice many of the foreclosures/under $100k homes are going into "Contingent" status quickly), is there any way that one can put a contingency on an offer stating that we are serious about purchasing the home, pending financial approval?
I've also left a message with him waiting to be called back in regards to what I need to do credit wise. He told me everything else looked great when it came to my debt-to-income and all that, and we'd be good to go once the credit scores were calculated by the bureaus.
Thanks!
I got called back by the lender today, he said the only issue he found was that my credit scores aren't being calculated because of lack of debt history over the last 2 years or so. I've never had a credit card, it's only really been cars that have since been paid off, and a tool company bill that was closed a couple years ago when my tool box was paid off. When I pulled my own annual free credit report last week, it showed the TU score (how I knew what my credit was), but no Experian or Equifax. He said that if they can get two accounts open to put on the credit report, it should be easily fixed within 30 days...
Since we really don't want to let this house slip away (we notice many of the foreclosures/under $100k homes are going into "Contingent" status quickly), is there any way that one can put a contingency on an offer stating that we are serious about purchasing the home, pending financial approval?
I've also left a message with him waiting to be called back in regards to what I need to do credit wise. He told me everything else looked great when it came to my debt-to-income and all that, and we'd be good to go once the credit scores were calculated by the bureaus.
Thanks!
Hi pipster,
It will be difficult for you to put a contingency on an offer unless you have a financial approval. Nevertheless, you should contact the seller and check out if you can put an contingency. You can also go for the option of owner financing if the seller agrees to it.
It will be difficult for you to put a contingency on an offer unless you have a financial approval. Nevertheless, you should contact the seller and check out if you can put an contingency. You can also go for the option of owner financing if the seller agrees to it.
Thanks for the reply, adonis!
The Realtor called us yesterday and asked how the preapproval was coming along. I told him about the credit scores needing to be calculated. He talked with the lender and was informed I've been preapproved for $150-175k going by my income and debt to income ratio. I just have to get two lines of credit open ASAP. Preferably a secured card through my bank and maybe a store card of some kind... I'm trying to research the best options while I await his email with card suggestions.
We are supposed to be meeting with the Realtor tomorrow morning to submit an offer, he said we would be able to add that it would be contingent on financing because of the preapproval. He said to also bring earnest money, which I guess is to prove the seriousness of the offer..? I knew they were required but wasn't positive on the purpose. The house is a bank owned repo that's been on the market for 5 months now, he said he is researching if there have been any past offers on it before we get together.
My girlfriend has had a home built before, back in 2008, and apparently this is much more stressful than that was! :?
The Realtor called us yesterday and asked how the preapproval was coming along. I told him about the credit scores needing to be calculated. He talked with the lender and was informed I've been preapproved for $150-175k going by my income and debt to income ratio. I just have to get two lines of credit open ASAP. Preferably a secured card through my bank and maybe a store card of some kind... I'm trying to research the best options while I await his email with card suggestions.
We are supposed to be meeting with the Realtor tomorrow morning to submit an offer, he said we would be able to add that it would be contingent on financing because of the preapproval. He said to also bring earnest money, which I guess is to prove the seriousness of the offer..? I knew they were required but wasn't positive on the purpose. The house is a bank owned repo that's been on the market for 5 months now, he said he is researching if there have been any past offers on it before we get together.
My girlfriend has had a home built before, back in 2008, and apparently this is much more stressful than that was! :?
Hi pipster,
As the Realtor has asked you to meet him, I will suggest you to go ahead and do so. May be he can check the documents and finally let you know the outcome of this.
Thanks
As the Realtor has asked you to meet him, I will suggest you to go ahead and do so. May be he can check the documents and finally let you know the outcome of this.
Thanks