Home Buying in Los Angeles>Question Details

Mz Cohen, Home Buyer in 90064

1st time home buyer. Strong credit, strong co-signer if needed because of debt-income ratio. How do I start?

Asked by Mz Cohen, 90064 Thu Feb 19, 2009

Help the community by answering this question:


The loan process shouldn't be a difficult process for anyone. Here is the process:

When applying for a loan, the broker will pull credit, look at job history, income, debt and stability of the person(s) applying for the loan. If the debt to income level is too high, you will not qualify in today's market.

Sometimes paying off a debt with cash will bring the debt ratio to appropriate levels for financing guidelines. This happens all the time. With or without a co-signer, the debt ratio must be at or under guidelines to be successful.

If all ratios are correct and the credit score high enough, and there are no late payments in the past 24 months for an FHA loan, or 12 months for a VA loan there shouldn't be a problem obtaining a loan from a reputable lender. Not all credit lates will stop one from buying a home, especially if they are medically related, as a letter of explaination (LOE) will be required and will need to be signed off on by the lender's underwriter.

Never sign anything you don't understand ever. Why would you?

The process though me or any other lender should be:

1. You fill out an application and get pre-qualified i.e. looks as if you can get funded for a home loan.

Next they will run your credit, if the credit is clean of recent deliquent payments or collections etc, you will now supply your broker with your last two paystubs, last 2 years income taxes w/ W-2's and last 3 months bank statements including all pages i.e. if page one says, page 1 of 3, you must supply all three even if the last page is blank.

2. Broker submits loan package to various lenders for approval. Here some questions may arise and need to be explained further before loan approval is granted. When granted, you will know what price range you may now begin looking for in a home.

3. Approval granted and now you give your pre-approval letter to Real Estate Realtor/agent and begin looking for homes that you're qualified to buy.

4. You will find a home, submit an offer with your pre-approval letter and then once an offer is accepted you are on your way and will begin the inspection process to ensure that you are getting a worthy home.

If I or anyone here can be of further assistance, contact them and they would be happy to answer your questions as that is what we're all here for...to assist you...this is what we do!

Great question and thank you for the opportunity to explain the process to you Mz. Cohen. Best of luck!

George Kininmonth
1 vote Thank Flag Link Fri Feb 20, 2009
You start by calling Realtors that work in the area you would like to purchase your home in. Take a look at the profiles of the agents in the 90064 area code and once you find a Realtor that you feel comfortable with, you will be on your way!
Best of Luck to you
0 votes Thank Flag Link Tue Mar 17, 2009
Mz Cohen: As a first time homebuyer, there are several advantages available to you. When speaking with your lender, ask them about the new !st time buyer credit of UP TO $8,000 (10% of purchase price).

Now as to a co-signer ... FHA offers you the option of having a non-occupying co-borrower. Their credit history, their income, assets and all of their credit liabilities come into play AND many times this is just the help you need to qualify. The loan approval process does not have to be difficult if you plan ahead.

To get started you need to go over your homeownership and financial goals with your loan officer. They will help you decide of the best strategy for you. It is best to have your lender crunch all your numbers before you go house shopping that way you are in the best position to make an offer as you will not be starting from ground zero.

If you would more information on the best way to shop for a mortgage, visit my website or give me a call for the answers to four questions you must ask your new lender.
Good Luck to you ... this is a very exciting time to be buying real estate.

Jane Whitten, Loan Officer/Windsor Capital Mortgage 562-728-9971
Web Reference: http://www.janewhitten.com
0 votes Thank Flag Link Sun Mar 1, 2009

It's time to begin collecting information about both the lending process and buying process.

Our recommendationis to begin with the lending process, which will help yo identify what your purchase limit price is and get you started collecting information about various programs available to you. We strongly suggest requesting a "good faith estimate" from each loan agent you work with. This will serve are a record of programs and rates specifically quoted to you.

Considered by many as an overwhelming and often confusing task because of a completely unfamiliar language filled with terms and jargon that leaves many "scratching " their heads. Do not allow the agent to drop terms.....insist they explain things in clear everyday understandable language that anyone can grasp.
If you don't understand something, make them explain it again.

You'll soon be on your way......

Good luck
0 votes Thank Flag Link Sat Feb 28, 2009
The first thing would be to interview agents working in the area you wish to purchase in. A good buyer agent will be able to refer you to a loan officer, or you can call your personal bank, in order to be pre-qualified for a home loan.
Once that process is complete, you will meet with your agent and begin looking a property. A professional Realtor will be able to assist you in making a wise investment and will preview propery for you.
0 votes Thank Flag Link Sat Feb 28, 2009
Dear Ms. Cohen,

You may use a co-signer to overcome the debt to income ratio but remember, the banks add ALL OF THE DEBT together to determine elibility. If your co-signer has excellent credit but has alot debt, you're back to square one. You want an co-signer who has low debt. Remember even if deferred, student loans are included in the total overall debt calculation.

Best of luck to you,
Down Payment Assistance Specialist/Loan Officer
Enterprise Mortgage Group, LLC
1850 Lee Road, Suite 140
Winter Park, FL 32789
Direct: 407-739-3853
Fax: 407-951-8886
0 votes Thank Flag Link Fri Feb 20, 2009
FHA is the only program which allows a cosigner. Speak with a local reputable lender who deals in both conventional and FHA financing. That way you know you are not getting railroaded into a particular program. They can let you know what types of programs best fit your needs and what you qualify for. Hopefully you have some down payment money saved up because 0% down loans are a thing of the past too
0 votes Thank Flag Link Fri Feb 20, 2009
I agree with Dyanna figure out what you can afford, pick an area, find an agent, and start cramming.
0 votes Thank Flag Link Thu Feb 19, 2009
you should contact a realtor that will do a free buyer's consultation with you and give you a first time home buyer's package. Get pre approved by a lender, a good realtor can refer you to one.
In the meantime you can search for homes for sale at http://www.tovasarir.com
If you have any further questions, feel free to contact me at homes@tovasarir.com or 310-497-1930.

Tova Sarir
Keller Williams Realty Beverly Hills
Web Reference: http://www.tovasarir.com
0 votes Thank Flag Link Thu Feb 19, 2009
You can also start to get an idea of what you want by checking out the listings in various areas on http://www.realtor.com. That way by the time you're pre-approved you'll also be a little more knowledgeable on what's out there.
Have fun!
0 votes Thank Flag Link Thu Feb 19, 2009
Get pre-approved with a lender. That way you will know if you qualify by yourself or really do need the co-signer. You should also have a general idea of where you would like to move to. That way when you get pre-approved you will know if you qualify for that area. Now you will need to find a GOOD agent that knows how to work in this market and has your best interest in mind. Home buying should be a beautiful experience, not a stressful one and many agents don't know how to do that.

Good Luck and if you have any questions please e-mail or call me.

0 votes Thank Flag Link Thu Feb 19, 2009
Hi Mz Cohen,
Find an agent you like, and he or she should be able to take you to the next step.
Good luck!
Web Reference: http://rd.la
0 votes Thank Flag Link Thu Feb 19, 2009
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