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Buy a House

Okay...so for those who have bought a home, im interested in getting on the path to do this, im tired of wasting money renting. So my question to the mamas who have been there, what do you need to do first, how do i go about getting credit together, and getting a home loan, AHH any advice will be greatly apreciated!!!

Thanks...

 
sweetstkissez22

Asked by sweetstkissez22 at 3:07 PM on Jul. 7, 2009 in Money & Work

Level 19 (7,070 Credits)
This question is closed.
Answers (9)
  • You should pull your own credit first someplace that includes the scores.
    These number will tell you the next step. If the scores are good then you should get pre approved with a broker, bank, credit union...for that you will need at least the following:
    2 years W-2's for all borrowers
    2 years tax returns for all borrowers
    2 months bank statements
    Most recent 2 paystubs showing 30 day year to date income.
    Whom you will use for insurance for your home
    you will have to have 2 years employment and residence history including names and phone numbers for the Verification of Rent and the Verfication of employment...

    Contact me if you need anymore information...

    Good luck
    mamakirs

    Answer by mamakirs at 3:14 PM on Jul. 7, 2009

  • You need to start with a budget, so you know how much house you can afford; your budget will need to be flexible, as houses use more energy and require more "stuff"; . Then you need to visit lenders to see how how big a mortgage you can get, and what the monthly payments will be; you may also be paying property taxes (ours run about $4000 a year).
    rkoloms

    Answer by rkoloms at 3:13 PM on Jul. 7, 2009

  • oops I forgot to add that you cannot allow each lender/bank/broker etc to pull your credit. Each time a new company pulls your credit it will ding your credit score.

    Also if there are erronous things on your credit report tackle those prior to getting pre approved.

    Also your ratios should be 29% of your income for just the housing payment and no more than 41% of your income including ALL of your debts...
    mamakirs

    Answer by mamakirs at 3:26 PM on Jul. 7, 2009

  • I think the previous posters answered the question pretty thoroughly, but since I'm closing on my first home in two days, this is still pretty fresh in my mind.

    First you need to make an HONEST budget. It is very helpful to have tracked your spending for the past 6-12 months to make this as accurate as possible. After looking at your spending, and coming up with a number that you are comfortable with for your mortgage payment, you need to go to a lender and get pre-approved.

    Mamakirs outlined exactly what you will need for this visit. I wanted to add that if you may also need your drivers license and social security card for this visit, as well as your husband or SO if he will be making this purchase with you. I didn't get an insurance company until I was under contract, so that is something that you wont need right away.

    Then you will need to contact a realtor, and start looking at homes!
    twin_mommy

    Answer by twin_mommy at 3:31 PM on Jul. 7, 2009

  • The best advice we got was to life 'as if' we were already paying a mortgage and taxes and maintenance on a house... but apart from the cost of rent, to save the rest of the money. Don't wait until you can 'afford' to save money, save it first as if you were already spending it. Then you'll know what it's like to actually live on a house-poor budget, and have lots of practice so when you get enough for your downpayment, you won't have a heart attack about the increased cost.

    We lived that way for 2 years, and saved enough for 20% down on our first home. We're now in our third, which is 30 years newer and more than 3x the size, in a nicer neighbourhood.

    Your credit doesn't matter as much as a downpayment does, because if you default, the creditor just gets the house, so there's very little risk as long as you're not 100% financed. Your credit only matters to how low you can negotiate the interest rate.
    LindaClement

    Answer by LindaClement at 3:59 PM on Jul. 7, 2009

  • Your credit doesn't matter as much as a downpayment does, because if you default, the creditor just gets the house, so there's very little risk as long as you're not 100% financed. Your credit only matters to how low you can negotiate the interest rate.

    WRONG WRONG WRONG

    Um without a decent credit score there is no loan honey.
    Anonymous

    Answer by Anonymous at 4:15 PM on Jul. 7, 2009

  • Credit is important but a downpayment and income are as important right now. Save your money.
    Anonymous

    Answer by Anonymous at 6:02 PM on Jul. 7, 2009

  • if you don't have credit there is no need for a down or for income either one ladies
    Anonymous

    Answer by Anonymous at 6:14 PM on Jul. 7, 2009

  • thanks for all the help ladies...within the next two years im lookin to buy a starter home
    sweetstkissez22

    Answer by sweetstkissez22 at 8:02 PM on Jul. 10, 2009

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