Posted on: 15th Aug, 2009 07:02 pm
My wife and I are "pre-qualified" for a loan (which I know doesn't mean much). We are potential first-time home buyers, who are a bit overwhelmed and definitely scared! But we're tired of renting and want to own our own place!
1) Should we get pre-approved for a loan so that we and a potential seller can be comfortable knowing we'll get a loan? We didn't proceed with that yet because we don't have a particular house in mind yet. We're only starting to look at houses in-person.
2) Is an FHA loan a reasonable financial thing to do? We definitely don't have enough saved up to put down 20% on anything worthwhile. 3.5% down payment would really be perfect for us as it would probably be a bit less than we have saved up. We'd prefer not to need to wait a few years to have 20% of a down payment, but we don't want to rush into this if it doesn't financially make sense.
3) We told our landlord that we were starting to look at purchasing a home when our lease was up in the spring. They had us sign a new lease and gave a vague response that we might be able to get out of the lease early if once we tell them we want out if they find a suitable replacement. It's just another thing hanging over our heads that worries me. But even if we wait until it's up again, what are the chances that we could buy and move out at the right time?
Ahh...
1) Should we get pre-approved for a loan so that we and a potential seller can be comfortable knowing we'll get a loan? We didn't proceed with that yet because we don't have a particular house in mind yet. We're only starting to look at houses in-person.
2) Is an FHA loan a reasonable financial thing to do? We definitely don't have enough saved up to put down 20% on anything worthwhile. 3.5% down payment would really be perfect for us as it would probably be a bit less than we have saved up. We'd prefer not to need to wait a few years to have 20% of a down payment, but we don't want to rush into this if it doesn't financially make sense.
3) We told our landlord that we were starting to look at purchasing a home when our lease was up in the spring. They had us sign a new lease and gave a vague response that we might be able to get out of the lease early if once we tell them we want out if they find a suitable replacement. It's just another thing hanging over our heads that worries me. But even if we wait until it's up again, what are the chances that we could buy and move out at the right time?
Ahh...
iansocool
Welcoemto the forum
1. Should we get pre-approved - This is really imprtant for you and also for the seller. It helps to make your decision on what you cna fford and make seller comferbale also that you are qulified to buy
2. Is an FHA loan a reasonable financial thing to do? - FHA is the best choice for any one who cannot make 20% down or want to amek very low doen payment. But remember if you dontio make 20% down, then you will have MIP with FHA. WHich is the mortgage insurace premium. WHich will increase yoru monthly payment. Also FHA has an upfront MIP of 1.75% which you can roll it in to your loan. That will make yoru loan 1.75% higher than your purchase price
3. On thie third point, you need to take some decision based on yoru exprince with yoru land lord. If it is a partment complex, they will never allow you to break alease, but if a private party then you may have some chance of negotiations. Probably you may need to pay 1 month rent extra for breakign the lease.
Good luck and feel free to ask
Welcoemto the forum
1. Should we get pre-approved - This is really imprtant for you and also for the seller. It helps to make your decision on what you cna fford and make seller comferbale also that you are qulified to buy
2. Is an FHA loan a reasonable financial thing to do? - FHA is the best choice for any one who cannot make 20% down or want to amek very low doen payment. But remember if you dontio make 20% down, then you will have MIP with FHA. WHich is the mortgage insurace premium. WHich will increase yoru monthly payment. Also FHA has an upfront MIP of 1.75% which you can roll it in to your loan. That will make yoru loan 1.75% higher than your purchase price
3. On thie third point, you need to take some decision based on yoru exprince with yoru land lord. If it is a partment complex, they will never allow you to break alease, but if a private party then you may have some chance of negotiations. Probably you may need to pay 1 month rent extra for breakign the lease.
Good luck and feel free to ask
Thank you for the answers!
1) That makes sense. We will probably consider moving forward with this soon.
2) Thank you for explaining those details about FHA. It gives us some food for thought.
3) It's a private party, so hopefully we'll be able to work something out (when we're ready for that step).
Thanks again! It's nice just getting some positive feedback.
1) That makes sense. We will probably consider moving forward with this soon.
2) Thank you for explaining those details about FHA. It gives us some food for thought.
3) It's a private party, so hopefully we'll be able to work something out (when we're ready for that step).
Thanks again! It's nice just getting some positive feedback.
iansocool
Glad to help
Good luck and this is one of the decisions you make in life. Your first home
Remember to take advatge of $8000/- tax credit you need to purchase somethign before November 1st 2009
Good luck and feel free to ask
Glad to help
Good luck and this is one of the decisions you make in life. Your first home
Remember to take advatge of $8000/- tax credit you need to purchase somethign before November 1st 2009
Good luck and feel free to ask