Spend some time speaking with a mortgage person who can give you a better idea with how you can finance your new home. There are many different loan options you may or may not qualify for. If you cannot qualfy the lender can help you get on the right path to home owner ship.
First off, great question! Shows me that you and your fiance are off to the right step by asking questions. I have worked with first time home buyer since 2003 and I would love to help you with your home purchasing needs. I also work with a great Loan Officer who knows FHA loans inside and out. (He is a Gov. Trainer for FHA and VA loans) I am confident that together we can help you get into the home you desire.
Based on information from my loan officer...
You will need roughly about $4,000 to $6,000 for closing costs on a loan under 150k. Which includes your 3.5% down payment, appraisal, credit report and closing costs. However, we can ask for concessions from the seller to assist you with the closing costs, which will mean less money out of your pocket at closing.
The paperwork you will need is last 2 years W2's and most recent 30days of pay-stubs. Mortgages are qualified based on credit scores and your DTI (debit to income ratio) You said that you have been renting for past 2 1/2 years, if you paid by check we can use that as proof of ability to pay.
I would be happy set you up with an automated search in the area of Taylor you desire, sent daily to your email with current property information. Please do not hesitate to contact me with any questions, as side from being a realtor, I was loan officer from 1997-2006, so I can guide to with the basic information you will need to get started.
I hope that this has helped you with the basic information you will need to start the buying process. Again, I would love to speak more in depth with you and help get you ready to buy the home you want. Do not hesitate to contact me with any questions you may have - (734) 444-5323 direct line.
Realtor - Vision Realty Centers