â—¦Home buying doesnâ€™t begin with home searching; it begins with a mortgage pre-approval. Often, first-time home buyers fear getting pre-approved because theyâ€™re afraid the lender may tell them they do not qualify for a mortgage or they qualify for a loan smaller than expected. However, by getting preapproved, buyers will make a financial decision rather than an emotional one.
â—¦Another mistake first-time home buyers make is not thinking of a house as a long-term commitment. If a buyer may have to switch jobs in a year or two and may have to move for the job, they should think twice about buying a house. Ideally, buyers should picture themselves living in the house for five to seven years.
â—¦Some first-time buyers make the mistake of spending all of their savings on the down payment and closing costs, and for some coming up with a 20 percent down payment to avoid paying for mortgage insurance. However, most real estate experts advise against this because the borrower will be left with no savings at all for home repairs and other unexpected expenses.
Hope you find this helpful. By following these simple steps, it can make your first time homebuying experience a great success!
If your scores are accurate, you would be right on the edge for qualification purposes. Generally speaking, most lenders will only consider scores down to 640 with the occasional exception down to 620. As a result, I am concerned that we may not be able to use your husband's credit history or income.
There are also other tools available such as seller concessions that would allow you to use the money you have for down payment, and cover most or all of your closing costs with the concession.
The only way to know for sure if you can proceed would be to discuss this during a short phone call or meeting. Please give me a call at your earliest convenience to discuss some options and a plan for action.
Licensed Mortgage Professional
R & R Funding, Inc.