Home Buying in 19133>Question Details

Luis McKarthy…, Home Buyer in Philadelphia, PA

Hello Everyone, I have a question about home buying. I hope someone can help me with answers. Its going to be a little long so bare with me.

Asked by Luis McKarthy Vanugenhymer, Philadelphia, PA Fri Dec 7, 2012

I want to get a mortgage to buy a home. I have been working for a non profit organization for the past 6 & 1/2 years. I work full time as a program manager and receive steady income. I recently just graduated college this past March. My credit score is about a 659 with 3 blemishes on record. All 3 blemishes are minor,($233 college bill, $354 & $550 medical bills)I am in the process of paying the college bill and the small medical bill to fix up those boo boo's. But my question is with a average 650-660 credit score and $3000 down on a $140,000 home(I qualify for up to $40,000 in subsidy) Meaning 3% of $100,000. Would I qualify? I am just really stressed out at this point. I already started the process of the credit report, gave a counselor 2 months of statements,2 years of tax returns. social and all that other stuff.I also have a $40,000 school loan from sallie mae,but I always pay on time. During income tax I always get like $5000 too. WYthink?I want to go for preapproval in Jan/Feb

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6
Sheri Curci’s answer
OK Harry

I agree you are getting stressed out so,....... Sloooow down, give me a a call + I can confidentially talk to you. Your in a good position.

1st thing, stop paying people ( if you are ) and we can get you an aggressive Mtg Manager that is REALLY SHARP in his business.
Your not alone there are a lot of buyers in your same shoes.... all we got to do is polish them :-)

All the Best John Curci RE/MAX 215-757-2889
1 vote Thank Flag Link Fri Dec 7, 2012
You should be fine . FHA lenders can go down to a 580 credit score .
1 vote Thank Flag Link Fri Dec 7, 2012
What are you waiting for? It costs you nothing and does not obligate you in any way to work with a RELIABLE lender--NOW!
Professional and dependable help is free; all you need to do is find someone you can trust to take care of YOUR best interests!
Do not start paying a credit repair 'specialist' until you've spoken with a reliable lender to advise you!
1 vote Thank Flag Link Fri Dec 7, 2012
BEST ANSWER
Debra (Debbie) Rose, Agent, Livingston, NJ
Harry - I can see you're stressed, and I think you need to take a big breath and a step back..............you didn't mention this, but......do you have any savings??

I would personally never advise anyone to buy a home unless they had a financial cushion.....no financial planner would advise anyone to do that, either...........so....before you jump into home ownership, as appealing as it may be..make sure you have that cushion to cover you in the event of unexpected expenses or emergencies.....saving should be part of any budget.....so make sure you're not overextending yourself.

There's more to owning a home than just paying the mortgage and taxes..........things break....big things can break..........make sure you look very closely before you leap!
And - 5.5% interest rate is very high by today's standards.....so, imo.......work on your credit...........pay down your loan......save......qualify for a low interest rate.....then buy a home.

Best wishes and have a wonderful holiday season.............
0 votes Thank Flag Link Fri Dec 7, 2012
Yea i have about $2000 now in savings... aiming for saving another $1000 within the next month or so. So by income tax ill have my $3000 plus my usual $4000-$5000 from income tax in january. So the 3% percent down isn't a problem, and the maintaining isn't a problem because I have other sources of income that can help me maintain. Its the actual first step process thats bothersom. Im 24 about to be 25 next year. Though Im young, I would like to have a home by that age mark. Ive been at home my whole life, one household. So if you can only imagine how important this step is to me. Waiting is no longer an option. Its about time for me to move out. Thats why im taking this step. I have assets aswell. I own 2 vehicles so Im not sure if that helps any as leverage. I was thinking of selling off 1, but i will wait and continue saving. Paitence is a virtue, I waited 24 years to make this move, finished school, now i need a Home! then I will be in peace. :) Thanks for your valuable insight.
Flag Fri Dec 7, 2012
Thanks for everyone that has answered. I appreciate your speedy responses. I will hold on tight and try to save up for the next month or two so I can be more secure. Also I forgot to mention that the homes are being sold by the organization I work for. So since I work for a non profit, They are helping me for no cost at all. I am scheduled to take my first housing counseling workshop tomorrow in the a.m. It is required that I do 8 hours before the pre approval. Tomorrows workshop is 2 and a half hours. I guess i can use the time in between until i finish the rest of the hours, to try to save, and knock off some of those small delinquencies.I just did my debt to income ratio. The payments of the New home im interested in are advertised at $564, at 5.5% interest...3% down, and 80% AMI.... So my debt to income ratio now stands at (MORTGAGE PAYMENT EXPENSE TO EFFECTIVE INCOME= 26%) and my (TOTAL FIXED PAYMENT TO EFFECTIVE INCOME=40%) So hopefully I can bring both numbers down a few percent by Jan/Feb. and bring my credit score up a few points as well. I want to do the big STEP in late JAN, early FEB.... Again. Thank you all. Any more advice will be greatly appreciated.



Godless you and have a great night!

Harry
0 votes Thank Flag Link Fri Dec 7, 2012
Btw, I know about the income/Debt ratio. My Income is like $2300-$2500 a month... I only have a $250 Sallie Mae bill to pay every month, and my car insurance, cell phone and thats about it. no more then $500 a month in bills. Nothing major, I have a few credit cards but they are always payed for early or on time. I keep them wayy below the %75 percent limit.

Any advice would be great. Thanks
0 votes Thank Flag Link Fri Dec 7, 2012
As a Realtor, I always advise my clients to ask a reliable lender (we know some) to answer ALL of your questions before you start shopping! I can find my clients a great home to buy, but I don't lend money, so I rely on dependable professionals. Find a dedicated Realtor, they will have lenders who can help you...and there are never obligations for you to either a reliable Realtor or a reliable lender!
Flag Fri Dec 7, 2012
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