Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




Looking to purchase first home.

Reply to topic
Money Talk > Credit & Loans

Author Thread
EricM
Member


Cash: $ 3.55

Posts: 16
Joined: 18 Nov 2010

Looking to purchase first home.  Reply with quote  

My wife and I are looking to buy our first home and I was just looking to see if anyone had some insight, as neither of us have any idea what we're doing or where to start. I had a few questions/concerns and am hoping someone could give some guidance.

Some background information...

My credit score is 633 at the moment, and I'm in the process of having a collection account that I was not responsible for, removed. My wife has a credit score close to 700, but she is a stay at home mom and has no money coming in. I have a steady career and make around $65-$70k a year.

First off, would we even qualify for a housing loan or should I try to shoot for a better credit rating before we pursued a home?

Secondly, would it help/ hurt or even make a difference if my wife were to apply with me? As stated above, she has a good credit rating, but no income.

Lastly, We are renting a home and are in a situation where our landlord has pulled a fast one on us, and we are having to scramble to find a place to live. Instead of wasting money on another rental, we would like to buy instead, if possible. I have read up on FHA assistance, and it seems like it would be the best choice, as we are not in a position to put down 20% on a home. Would this be a good idea?

Any advice would be greatly appreciated!

Thanks,
Post Sat Jan 19, 2013 10:53 pm
 View user's profile Send private message
littleroc02us
Moderator


Cash: $ 381.45

Posts: 1877
Joined: 09 Feb 2009

 Reply with quote  

Look at it from a reasonable banks perspective, if you saw that there was a one income family, a low credit score by one of the two individuals and no down payment, would you loan money to them to buy a home? IMO, I don't think your ready to buy a home. What I did before I bought my first home is moved into a small studio apartment and saved up money to buy a home. I would save a 20% downpayment and make sure you have not debt, it will put you in a position to succeed.


Good luck!

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Sun Jan 20, 2013 3:04 am
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

It's not a good idea at all to be scrambling to get out of a rental and into a purchased home. This puts you at a disadvantage in so many ways, the financial being only one. Go rent another place, settle in for a year, and then see where things stand.

~Tim~
Post Sun Jan 20, 2013 7:34 am
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 718.00

Posts: 3492
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
I have a steady career and make around $65-$70k a year.


Eric, are you in sales? (the variable income?)
I read thru your 15 posts. Your background - unusual car dealings, unpaid bills, interstate moves - looks bad to lenders. And if you have an unstable varible income, that makes it worse. Has your wife worked - what kind of experience, education? Maybe she could work for a few years to show a family income of over $100,000/yr, pay off all bills, collections, cars, save up some cash - then try again in 2 or 3 years.

As Littleroc said - it will be easy for lenders to find better borrowers than you to place their money with.
Post Sun Jan 20, 2013 3:59 pm
 View user's profile Send private message
jim.sklansky
Contributing Member


Cash: $ 6.35

Posts: 30
Joined: 07 Jan 2013

 Reply with quote  

Hi,

I have an idea about this matter. Just few thinks are important about buying a home.

1. Consider it as a project. Make a charter.
2. Thinks each and every steps and create work break down structure
3. put cost, analysis risk and consider interest and source of monthly installment.
3. If you are not able then think alternative
4. Since work at home is popular so you wife can contribute a lot.
5. Make sure you want to buy a home that you can afford. Think practical and take decision.
5. If you think that you are not prepared right now then save amount a for next 2 or 3 years and start again from 1.
6. Switch your job based on your interest.

Best of luck!!
Post Sun Jan 20, 2013 5:44 pm
 View user's profile Send private message Visit poster's website
EricM
Member


Cash: $ 3.55

Posts: 16
Joined: 18 Nov 2010

 Reply with quote  

Thanks a ton for the opinions guys. I do realize that my wife and I probably don't look like the best candidates. I am a building automation programmer. My income is not variable, but it is increasing year by year.

Our situation is so weird right now, and I have to get something figured out.

My wife is from GA and I'm from NC. We live in NC and just had a baby, and we worked out a deal with our landlord to allow her parents to move up from GA to live with us for a bit. (They are planning on selling their house and buying one here). Our landlord up and decided to change her mind and not let them live with us anymore (After they were completely moved in) and also wants to sell the house at an insane price, in which we would not even consider.

The only thing that worries me about renting another place, is the fact that every place I see is "single family" only. Her parent's would have to turn around and move right back to GA if they could not live with us, as they cannot afford to pay for 2 places.

These are the reasons that I'm even questioning buying. We pay $1000 for the rental we are currently in and are very comfortable with that and we have about $5000 saved up.

We have also somewhat checked in to a few lease to own homes, where the owner/broker helps out with credit guidance, and helps prepare you for a mortgage.

Are these not good options either?

Thanks,
Post Thu Jan 24, 2013 2:05 am
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

That definition of "single family" can mean different things; before you decide that it eliminates you, you should ask and mention the specific circumstances; a lease contract may or may not be more specific, but then too, its terms may be changed to fit specific circumstances. What they're most concerned about is a whole group of unrelated people living together in one rental unit.

~Tim~
Post Thu Jan 24, 2013 7:02 am
 View user's profile Send private message
Blissboy
New Member


Cash: $ 1.40

Posts: 7
Joined: 17 Nov 2012

hi  Reply with quote  

i don't know how home loans work in america but in my country if some on want to buy a home, they prefer to meet real estate agent and they even i also give installment loans if you have a job. Banks are also there but these installment loans are very much preferred because of low rate and flexible to repay.
Post Thu Feb 14, 2013 4:24 am
 View user's profile Send private message Visit poster's website
hewiesidney
Member


Cash: $ 2.00

Posts: 10
Joined: 04 Mar 2013

 Reply with quote  

Purchasing your first home can be exciting as well as somewhat intimidating. By employing a few simple approaches to the task, you will greatly enhance your chances of taking some of the anxiety out of the process and be able to secure a home that will prove to be a source of pride and pleasure.
Post Mon Mar 04, 2013 11:39 am
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016