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Sick of renting

Anonymous
Posted by Anonymous
  • 22 Replies
My S/O and I are currently renting and i hateeee it.
We would love to get a morgage to buy a house. Besides saving, What is the best way to go about this? Did you get a loan from the bank, did you cut back all the extras and pinch pennies until you could afford it on your own? Tips please :)
Posted by Anonymous on Apr. 22, 2013 at 3:56 AM
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Replies (1-10):
Anonymous
by Anonymous on Apr. 22, 2013 at 3:59 AM
VA loan here
Anonymous
by Anonymous on Apr. 22, 2013 at 4:02 AM
My landlord decided to retire and was.selling off.his property. They offered us the house financing it.through them. That's the only way we would have got it.
DarlaHood
by on Apr. 22, 2013 at 4:08 AM

Probably the easiest loans for first time homebuyers are FHA loans.  You can go talk to a lender and have them run your credit, look at your financial picture, and they can advise you what else you need to do to qualify.  It is a good idea to get pre-qualified prior to even looking at homes.  Many real estate professionals have private lenders that handle many different types of loans, and this can be helpful.  You may want to contact a well seasoned and knowledgable agent and ask for referral.  However, just because you pre-qualify doesn't mean you are locked into that broker or lender.  They will just help you to see if there is anything you need to clean up on your credit, determine the maximum amount of loan you can qualify for, and help you determine how much house you can afford.  They will tell you how much you need for a down payment, and if you have to pay PMI. 

Bottom line - be conservative and take all of your expenses into account because sometimes people qualify for more than they can comfortable afford with taxes, insurance, repairs, and other expenses such as day care. 

Typically going to a bank for a traditional mortgage requires a larger down payment and more meticulous credit.  Some banks may carry FHA as a product though.

When we bought our home, we moved out of our rental and in our in-laws house for 6 months, so we could save the rest of our down payment.  We payed off all of our debt except one small car loan.  And we had our credit reports checked and all errors removed.  If you have any outstanding accounts, you must pay them off - going back at least 10 years. 


krissy920
by Gold Member on Apr. 22, 2013 at 4:17 AM

hows your  credit?

DuchessScrat
by Platinum Member on Apr. 22, 2013 at 4:41 AM

Mortgage companies typically want to see that you have had at least one loan (such as a car loan) and at least three credit cards in good standing that you have paid on for a few years.

DuchessScrat
by Platinum Member on Apr. 22, 2013 at 4:45 AM

Oh and it's free to call up a mortgage company and try to get pre-approved.  If you don't get approved, they will let you know what you need to do to qualify in the future.  Just keep in mind that they will check your credit and you do not want too many companies checking your credit in a short period of time or it will lower your score.

msalice_21
by Platinum Member on Apr. 22, 2013 at 5:24 AM
I was extremely lucky in life and got a large sum from my tribe. I put a fat majority of it on a condo. (Which I regret doing, I shouldve bought a house, not a condo.) I did t have credit cards or a car loan either. In fact I've never had one before.
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exhaustedmother
by Amy on Apr. 22, 2013 at 5:25 AM

I was able to get a loan with a great interest rate through Suntrust. We had  gotten one with 0 down although we had money in the bank from money that Hubby inherited when his dad passed, thanks to the great deal we got on the loan we were able to use the money for other things such as appliances and  stuff we needed for our home.

Supervane
by Ruby Member on Apr. 22, 2013 at 5:29 AM
I think the best way to purchase a home is the good old fashion way. . . Save money give a good amount of down payment and then do a traditional loan
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JeanPatrick
by Member on Apr. 22, 2013 at 5:30 AM
1 mom liked this
I would also suggest going to a first time homebuyer class in your area.


Quoting DarlaHood:

Probably the easiest loans for first time homebuyers are FHA loans.  You can go talk to a lender and have them run your credit, look at your financial picture, and they can advise you what else you need to do to qualify.  It is a good idea to get pre-qualified prior to even looking at homes.  Many real estate professionals have private lenders that handle many different types of loans, and this can be helpful.  You may want to contact a well seasoned and knowledgable agent and ask for referral.  However, just because you pre-qualify doesn't mean you are locked into that broker or lender.  They will just help you to see if there is anything you need to clean up on your credit, determine the maximum amount of loan you can qualify for, and help you determine how much house you can afford.  They will tell you how much you need for a down payment, and if you have to pay PMI. 

Bottom line - be conservative and take all of your expenses into account because sometimes people qualify for more than they can comfortable afford with taxes, insurance, repairs, and other expenses such as day care. 

Typically going to a bank for a traditional mortgage requires a larger down payment and more meticulous credit.  Some banks may carry FHA as a product though.

When we bought our home, we moved out of our rental and in our in-laws house for 6 months, so we could save the rest of our down payment.  We payed off all of our debt except one small car loan.  And we had our credit reports checked and all errors removed.  If you have any outstanding accounts, you must pay them off - going back at least 10 years. 



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