I live in La Mesa and can help you get into a home here.
Regarding your credit score, you can technically get a FHA loan with a 580 FICO, but most lenders will want 620. You're not far, and I may be able to help you get it up to where it should be for a better interest rate. A higher interest rate will cause you to be able to buy less home; you end up paying the bank more in interest because they'll view you as higher risk. But, you're almost there!
When you started your job isn't as important as your employment history for the last couple of years.
Regarding income, lenders will look at pay stubs and tax returns. You may be able to use a letter from your employer, but this will up to the underwriter, the person that will be delving into your financials, not your loan officer or real estate agent, who'll often say they can do something to get your business. The underwriter will want verification. These practices are risky, and lenders are done with risky, except for a price. Hire someone that will be up front with you. This is really important.
Why is this so important? In escrow, you have a certain number of days to get a loan commitment from your lender. If you can't get your loan, you can back out within that time frame and get your security deposit back. Depending on the price of your home, this can be $1000 or more. Plus, your first couple days in escrow will cost you money out of pocket that you won't get back, whether you get your loan or not. Figure $275+ for an inspection, and another $450 or so for an appraisal. If your appraisal takes two weeks and your underwriter can't finish in time, you could also lose your deposit money if you need to cancel because you can't get your loan. So, while it's not fun to bare your financial soul, it's better to know something before you enter escrow. And, it's really not fun if you've already fallen in love with a home.
There is down payment assistance available, depending on income, property and location, as long as the program has money. It's first come, first served. I can help you with that.
If you find you can't buy right now, it's definitely not the end of the world. Work with an agent who cares, and you'll be writing offers soon enough!
Cory La Scala, REALTOR
Lic # 01443391
I have lenders that assist clients all of the time with similar credit situations and I feel that it would be worth your time to speak with them. I also have credit counselors that assist my clients with credit rehabilitation, and once you are ready I would love the opportunity to represent you as your Realtor. Feel free to contact me at 619-565-3604 or visit my website http://www.militaryhomesinsandiego.com
Keller Williams Realty/ RBD Residential
4495 Dale Avenue, La Mesa, Ca 91941
Whether you qualify or not will depend on a number of factors...your credit is low by today's standards...but I support you in meeting with a lender to see exactly what needs to be done to get you qualified for a mortgage.
Please feel free to contact me. Have a good one!
I am a real estate broker that lives in the La Mesa / Spring Valley area and I have a couple of lenders I could refer to you about your credit and financial situation.
Please email me and I will send you their contacts.
Jason Kardos, Real Estate Broker/Owner
Office (619) 303-2826
Fax (619) 270-2595
I'm assuming the money you get at work that is not on your check is also not on your W-2? If that's the case a letter from your employer is of no use.
Starting your job in March is not an issue assuming you have had steady employment for the last couple years. If you've had extended time off then it's a different situation.
The credit score is also a challenge.
What you need;
2yrs documented (W-2 and/or tax returns) income with current income sufficient to qualify.
Enough money in the bank to make your payments for a couple months including taxes / ins /HOA
Often a credit score of 620-640 is the minimum dep on the lender.
If you just started a job, have no savings, and are credit challenged then I would suggest saving some money and paying down any debt.
Terry J. Dyer Realtor
CA DRE Lic 01144254
Smart Realty and Lending
I work with a great lender who can help you get pre-approved. He also has great information on both down payment & closing cost assistance programs. He is approved to help first time home buyers via CHW. Please feel free to call or email me and I can give you more information about both his and my experience helping first time home buyers and with the different assistance programs available for you.
That's so exciting that you are starting the process of purchasing your first home. The first hoop to jump through will be to determine how much you are prequalified for with your current income, credit score, etc. After you have that information you can begin looking at potential properties for purchase.
I have seen people, who make bonuses and overtime, use a letter from their employers to verify the funds so you should not have any trouble there. Also, assistance with closing costs and down payments is available under some circumstances.
The best thing to do now is to interview a couple REALTORS to work with. Make sure to discuss with them the lenders that they prefer to use. The best way to pick a great mortgage broker is to use a referral!
If you have any questions or if you'd like to set up a time to talk/meet please call or email!