Home Buying in Worcester>Question Details

Clementdatcha, Home Buyer in Worcester, MA

if i want to buy a townhouse worth, let's say $150,000, what are the conditions to fulfill to qualify( downpayment, wages, credit..)?

Asked by Clementdatcha, Worcester, MA Wed Jul 17, 2013

exclusively townhouses, that"s what i want to buy.

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Answers

8
Get a in touch with a Mortgage lender. The best way to find out what you will need to put down etc..is after giving your information to a loan officer. It will also put you in a great position when submitting an offer!
0 votes Thank Flag Link Wed Nov 13, 2013
With mortgage rates on a rocket and the economy in apocalyptically horrific shape, just wait a year and pick something up for half the price on a cash basis. Worcester's been a basket case for two generations and nothing in the fundamentals supports housing prices at even a half of what they are now. Make friends with whoever handles REOs at the big originators. They cooked the FASB rules to let them delay booking foreclosures but at some point Ben's printing press is going to slow and they're actually need to get some real money into their Ponzis.

The smart money enters the field when the flames are leaping from the windows and people are running in in the streets weeping in terror at rumors of cannibalism. I know, sounds a lot like Worcester any day but the reckoning after 25 years of abandonment of underwriting quality is yet to come my friend. Plan on buying whole condo complexes. Those opportunities will appear and you have to be ready. Added bonus: if things really go sour long-term and we're in a Mad Max scenario, a whole complex is easier to organize to plan for common defense.

Stay agile, stay in cash and know that the day when Realtors will just be things we cook for meat stock will soon be here.
0 votes Thank Flag Link Wed Jul 17, 2013
I agree with Paul's answer. Start by talking to three mortgage brokers. The rules and rates are constantly changing. A pre-approval is much better than a prequalification. They should be asking you for proof of income etc. There is nothing worse than finding your dream home only to find that the
pre-qual was not based on proof of income and you really don't qualify for the home. Not only will you feel cheated, you will compare every home to the one you couldn't buy.
A mortgage brokerage will have more programs than a bank. I also find that they are more accessible than the loan officers in a bank. I have two people I recommend. If I have question at 8:00 p.m. or on weekends, they either pick up the call or get right back to me. You will not get that from an employee at a bank. Shop around like you would if you were buying a car. You want the best program and rate that meets your financial needs. You may be paying for your home for 30 years.
I hope this helps.
0 votes Thank Flag Link Wed Jul 17, 2013
Downpayment programs vary according to financing program ( could be from 3.5% to 20% ) depending apon which program being used. The best way to start looking for a home is to get a prequalification from your bank or a mortgage broker. Once you know what you qualify for and are comfortable with what your projected mortgage payment will be you can then start shopping with confidence.
0 votes Thank Flag Link Wed Jul 17, 2013
check out our interview on Designing Spaces in the link below. Call us to review your individual scenario
0 votes Thank Flag Link Wed Jul 17, 2013
Down payment is really up to you ... what can you afford?. It is generally a good idea to put at least 20% down to avoid PMI payments ... though there may still be some programs that would allow a smaller down payment without PMI.

It's hard to put a number on the wage and credit requirements ... again, it depends on how much you plan to borrow vs put in a down payment ... however, it's good to keep in mind that the bank is going to want to look at your overall debt to income ratio not to exceed 38% I think (this may have changed, but since that is really pushing your debt burden ... that's for you to decide).l. Do you owe money elsewhere? What regular payments do you currently make on a regular basis? Do you have credit cards? What are the taxes and insurance that you expect to pay?

These days ... when one has a credit score exceeding 760 ... chances are, a conventional loan should be pretty straightforward ... credit scores lower than that will need to really consult your mortgage consultant to look at all the other aspects of your financial situation.

Best of luck!

Greer
0 votes Thank Flag Link Wed Jul 17, 2013
It depends on the loan program as they each will have their own requirements. Talk to mortgage broker or direct lender to see what you qualify for, this should always be the first step before even looking at any properties. Also, your buyer's agent should be able to guide you through the buying process.
Web Reference: http://wenrealty.com
0 votes Thank Flag Link Wed Jul 17, 2013
You can always use a mortgage calculation, just google it, and imput different amounts to see what you will need to put down to make your payments manageable.

Or just go to your local bank for a pre qualification.
0 votes Thank Flag Link Wed Jul 17, 2013
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