Well, thats the thing. We already have made an offer on a house (since the first mortgage consultant assured that we would get a mortgage and that the seller assist would cover the closing costs) and we are attempting to find financing. The bank that we are trying to go through is going to try to get us financing (as they only deal with the application submission, and not directly financing in this instance), but there is still that doubt in the back of my mind that thinks that we wont get it because of the economic "crisis" that is on everyones mind. You are right, its worse in some areas than in others. We happen to be only slightly affected in our area and that may work to our benefit since we are going through a local bank. The reason that we decided to purchase a house at this time is because we had been looking around at houses and this one caught our eye. The house was under agreement for 65 days and it came back on to the market due to financing issues. The house is perfect and is in move in condition (hard to find in our price range) and the seller accepted our offer (another shock to us). This house had many offers and we know that it would be a good investment because of the location, style of the house and the property that it sits on. Here again, we rely solely on the financing coming through.

Jarrad,
You might also consider putting things on hold for a few months and salting away some of your own downpayment and closing costs money. Being willing to wait is another 'old-fashioned discipline' that has fallen out of favor with many, but those who still practice it are generally better off in the long run. Just like an athlete training for a competition, the self -imposed discipline of preparing for the future builds strong (in this case, financial) muscles and the necessary stamina to be a winner.
Here are a couple of questions to answer to see if that makes sense for you..
1) What are you paying for housing now? If you and/or your fiancee can still be living with family, as opposed to paying rent, this can be a prime saving time for you. If you are paying rent, how does it compare to the new cost of housing with a mortgage, taxes and insurance.
2) The reality is that if you are totally relying on someone else (a seller who is willing to pay closing costs, and a bank that will finance 100%), you are cutting down your options, and MAY NOT be getting the best deal!
With 5-10% saved, you can look at all the houses that are out there, and pick from banks-- not just the few that give you what you want right now!
3) If you are willing to wait til you have been at this job for at least a year, you will further open your opportunities for financing.
Just a thought.
Mim

Thank you Mim. We do try to follow good "old fashioned" credit practices. Unfortunately, becuase of a time of hardship and a sour previous relationship, I have roughly 4k in credit card debt. We have about 28k in college loans (she is still in school, in her junior year), but that is more of an investment and is slowly paying itself off. We are being thrify, even when choosing a house.

The mortgage amount will only be for about 91k which, in todays market, isn't very high. We are doing 100% financing (102% including the 2% government fee) and we are getting sellers assist for the closing costs. It is good to hear that there is a possibility as many banks have turned us down due to my "Temporary" employment status as a Contract worker. I have contacted about 10 banks and we finally found one that would allow us to submit an application and seemed fairly optimistic...our last choice will be a mortgage consultant. We are avoiding using a consultant because of high fees. We had gotten a quote of 7k for closing costs from one consultant and that was a bit too high for us, but if we have to we'll do it.
Thanks again
Jarrad

Jarrad,
It's an amazing thing- the power of the news media! A mortgage banker that I have worked with for years recently sent out a newletter that started "THE SKY IS FALLING, THE SKY IS FALLING" ...in Central park. But not on Main Street, (his town name)!
Here in South Central PA, where I live in small town America, the sky has certainly gotten gray, but the sky is not falling! If you have maintained good (may I say "old-fashioned" ?) credit practices, you have a good shot at getting a mortgage.

What are good credit practices?? They are the 'old-fashioned' disciplines--a too long forgotten word!

Here are some tips:
1) NOT SPENDING MORE THAN YOU MAKE!-- no matter what! That means that you may--NO,(I wish that there was a strikeout feature on the keyboard to emphasize this) YOU W I L L have to choose, consciously make the decison, to not buy a bunch of the things that you see neighbors and friends buying. Are they in debt up to their eyebrows?? You don't want to be there.
2) A REGULAR SAVING PLAN. Put away some out of every paycheck to build a cushion for tough times- because tough times ALWAYS come, sooner or later.
3) PAY EVERY BILL ON TIME! --if you are already in trouble, immediately seek out Credit Counseling help.

YOu will NOT GET more than 100% financing-- but then, who ever said that that was a good idea?
Blessings to you as you move forward- and choose wisely.
Hope that helps.
Mim Heisey
REALTOR GRI
HALE REAL ESTATE
office # 717-532-2814
cell# 717-360-8808