Home Buying in Los Angeles>Question Details

Amy Smith, Home Buyer in Los Angeles, CA

What would help us secure a short sale property for 250k as first time home buyers with these circumstances?

Asked by Amy Smith, Los Angeles, CA Mon Mar 25, 2013

We have been paying $1950 monthly for some time. Our landlord has informed us that our rent will increase to $2150. We would love invest that money in our own property but are limited by credit.
Here is what we are working with:
-73k income
-5 years employed
-Bad Credit (school loans couldn't find a job)

Is there anything we could do to become home buyers?
I'm not sure what else would be helpful but any advice is appreciated.

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Answers

15
Dorene Slavitz’s answer
Dear Amy,
You really need a good loan officer to look "At Detail" at all your income, expenses and debt in order to do justice to your question. You can work with a loan officer at the place you are already banking or send an email to me and I can give you a referral.
0 votes Thank Flag Link Mon Apr 1, 2013
BEST ANSWER
The first thing you need to do is speak to a mortgage broker or a direct lender. That person will look at your financials and credit history and tell you how much house you can afford to buy. If a determination is made that you can afford to buy, the mortgage broker will give you a letter called a pre-approval letter. That letter explains to any seller that you've been approved for a loan up to a certain amount.

You would submit that letter with any offer to buy a property. Without a pre-approval letter from a mortgage broker it is unlikely that any offer you made on any property would be accepted.

If you would like some referrals to a few mortgage brokers and lenders feel free to send me a private email.

Good luck!
0 votes Thank Flag Link Mon Mar 25, 2013
talk to a lender...but,it looks like your in LA from your profile...right now properties that are in that area around 250k are usually being bid on by private investors...these investors can put close to 40% or more cash down...this hurts the negotiating process if you have bad credit and no cash down....especially if your looking for a single family home and not a one bedroom apt. to purchase...try to build your credit and save cash for a down payment...then you have more leverage to negotiate the price...but talk to a lender whom is the expert first...
good luck
0 votes Thank Flag Link Mon Apr 1, 2013
Hi Amy,

The first thing I would do is to talk to a lender & see what we need to do to do credit repair for you,that would be you best bet ,or you can find a lease to own property .That way as you rent you can work on your credit repair . Good Luck !
0 votes Thank Flag Link Sat Mar 30, 2013
Amy, The only limiting factor here is yourself. Here the voices before me. Go out and speak to a lender. You can go to your personal bank or I can refer you to a lender. Start there and see what you can really afford.

Xochilt Ortiz
The Real Estate Group
xochiltortiz@yahoo.com
0 votes Thank Flag Link Tue Mar 26, 2013
The only debt I have is student loans. I took the minimum in college but I still owe quite a bit. I will contact a loan officer to see exactly what my options are.
Thank you all for your advice.
0 votes Thank Flag Link Mon Mar 25, 2013
Hello Amy,

Student loans are one of the worst things to default on.

How bad is your credit? If your Middle FICO score is below 620 there is very little chance of you securing a mortgage loans with any kind of reasonable terms.

I suggest you consult a mortgage consultant at a "DIRECT LENDER", and get advice on how you can improve your FICO scores, before you try applying for a mortgage loan.


Best of Luck to You!
Kawain Payne, Realtor
0 votes Thank Flag Link Mon Mar 25, 2013
Did you have late payments on your student loans? Or are the in collection status? The best first step is to call a loan officer and have them check your credit and go over your credit with you in detail. The loan officer can then get you on the right path to qualify. Feel free to call if you would like me to help.
0 votes Thank Flag Link Mon Mar 25, 2013
The best thing you can do to become home owners at some point is to increase your credit scores. This often means paying off debts and lowering credit card balances.

Seriously, with bad credit you will not be able to take advantage of low interest rates..Why not start your home ownership career on solid financial footing?

See a mortgage broker, but take the time and painful steps of paying back what you already owe before incumbering yourself with another debt.
0 votes Thank Flag Link Mon Mar 25, 2013
First step, contact a lender asap! Once it is determined how much house you qualify for, you can begin looking at properties.
Good luck.
0 votes Thank Flag Link Mon Mar 25, 2013
I agree with Carlos, it is best you contact loan officer first to discover all your financial options and obtain a pre-approval first before you start looking at properties.

Once you have a pre-approval and know exact amout - then it is best to contact a professional and licensee realtor who will be able to find a good property for you withing your Budget.

Hopethisinfo will help you!




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0 votes Thank Flag Link Mon Mar 25, 2013
Have you spoken to any Loan Officer yet? That is the first place to start. There may be different programs that can help.
It is unlikely you will be able to purchase the deal you mention, as it will likely be gone by the time you have any loan commitment.
0 votes Thank Flag Link Mon Mar 25, 2013
No, we have not spoken to anyone yet. Thanks for your advice.
Flag Mon Mar 25, 2013
Bill Sherwood
Branch Manager
iServe Residential Lending
213-840-7651 C (text)
818-435-4200 Office
bsherwood@iservelending.com
MLS # 369324
also do credit repair
0 votes Thank Flag Link Mon Mar 25, 2013
Credit Repair:
Victor Tran
National Consultant
Coast to Coast Credit Services, Inc
http://www.usbestcreditrepair.com

Toll Free: 1-888-292-2525 ext. 323
Local: 972-398-9090 ext. 323
Cell: 469-693-5109

100% Legal & Professional Credit Repair!
For your protection, we are 100% BONDED and REGISTERED
with the SECRETARY of STATE.
0 votes Thank Flag Link Mon Mar 25, 2013
I'm going to attack this from the other side:
Do not assume that because it is priced that it is either WORTH $250 or that you can buy it for $250!!!

After you get your Loan set-up; have your Realtor do a CMA to determine the Market Value. You will want to ignore what the Seller is asking.
0 votes Thank Flag Link Mon Mar 25, 2013
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