IMO = In My Opinion

IDK = I Don't Know

IMHO = In My Humble Opinion

ARM = Adjustable Rate Mortgage

PMI = Private Mortgage Insurance (ask your Lender to explain)

MIP = Mortgage Insurance Premium (ask your Lender to explain)

Enjoy your day,
Fred

Thanks again guys. Please don't misunderstand me I don't want to buy & love a house I can't afford but I also don't want to buy a house that I can afford that I don't love, just because I can afford it. Depreciation scares me & in Phila & surrounding burbs neighborhoods change rather quickly. I am affraid to buy a house that I can afford that I am no completely happy with and try to sell it in 3-5 years, when maybe the neighborhood has changed and house prices continued to decline, so now this house that I settled for is worth less then what I owe on it. Given the choice I'd work 2 jobs to afford the house I love rather then be stuck in a house I settled for.

Another question is Kim what do you mean by IMO? Not really sure what PMI/MIP is either, thought it was something about points & interest rates but IDK? I would definately stay way from ARM because I need a steady payment every month/ every year with the way I do my bills. And I definitely don't want to be part of the economy's problem.

Its good to hear that even in a year I might not miss the house price decline (although I haven't seen these drastic numbers that all the news stations are reporting). I really hope that the buyers incentives continue next year. I am just really anxious to get into a house sooner rather then later as my son will start Kindergarten in 2010 & I don't want him to have too switch schools too much.

I am a first time home buyer and a single mom so I was wondering what kind of loans & grants are out there for me to utilize when I do buy a house? Also I know minimal debt & downpayment are both important but from what I reading I should get the debt down first. If I can double up some of my payments maybe that can be done in half the time.

You need to think with your head and not your heart.

IMO, with your current income, debt, credit score and your need to have a downpayment advanced/loaned? With taxes, PMI/MIP and insurance in most areas, with rates that you might be offered with your credit score, you'd have a payment approaching $2000 a month on a fixed rate loan. In no way, shape, or form is that a responsible payment for you to tackle (if someone would even offer it to you.) And if someone offers you an ARM to try to get you in the door now, promising that when the payment jumps up later you should be able to afford it with your new, as yet unknown job and salary? That's just one of the reasons we have the plethora of foreclosures and short sales right now: because buyers HAD to have a particular home, even though it was really beyond their means.

Non Realtor is right - its going to be awhile before prices jump up again. There will be further need to stimulate the market, so there will more than likely be other first time buyer incentives in the future. As far as rent/buy? No legit lender is going to finance you on that. Owner finance is risky IMO - you'd have to research up front that the owner wasn't buried in a loan, otherwise you'd always have to fear that the payment you send wouldn't get to the owner's bank.

Rent. Work on budgeting. Start paying down/off that debt to get your credit score and rating up so you don't get stuck in some weird scammy loan (if they're even out there anymore) and then back here 18 months from now asking questions about foreclosure and short sale.

Hi Megan,
Take your time. There is no hurry. House prices will probably be declining for 10 years. Save your money for a good downpayment. Good Luck

Hi, Megan

Your new question, "Pay off Debt or Save up Money?"

Your Debt is incurring High Interest Charges and Carrying Costs.

On the contrary, the money that you Save in a Savings Account, or CD, or Wherever, is probably earning very, very little interest.


Your Credit Score may be seriously affected by Credit Cards or Loans where the outstanding balance is more than 30% of the Credit Limit, or where payments are late or minimal. Paying off the Cards, or at least reducing the Balance, may improve your Credit Score.


May I strongly encourage you to meet with a Mortgage Lender or Mortgage Banker. Show them your debts, monthly payments, income, etc. Ask the Lender what is the best plan of action for you.

Fred
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Thanks guys. I know that the job market is not picking up any time soon, but I am afraid that the housing market with soar sky high again before it does & I really wanted to buy sooner rather then later.

One additional question if you both don't mind (or anyone).

There are 2 situations in my immediate control: my credit card debt to income ratio & a down payment towards the price. If I take all of the money I make over the six month, that is left over after bills, Would it be more beneficial for me to save that extra money for a bigger downpayment or use that extra money monthly to pay down my credit card debt?

Thanks

Hi Megan. I bet you can find a lot of homes you love! Did you calculate your mortgage payment using this hypothetical situation? $300k home + Property taxes + Insurance = ? If a bank said YES, can you make the payments and still feed your family? Keep your eyes open.....and keep looking for a new career opportunity.....then buy the house you want! In the meantime, pay down your debt and work on your credit score.

Robert Greenblatt
Keller Williams

See a Lender ASAP -

582 FICO, and $299K loan on $32K income is pushing the envelope, but only a Lender can make that determination.

The $8000 Tax Credit will expire on November 30. Time is rapidly running out.

"Lease to Buy Option" carries serious Legal Ramifications - see a Real Estate Attorney before signing any Lease to Buy or Lease Option Agreement or Contract.

"Once the Job Market picks up" - not going to happen under the current Congress and current Administration - things are only going to get worse.

Sincere best wishes,
Fred.