We have about $8,000 saved up for a down payment. We pay $870 a mth in rent currently and would like to buy

Asked by Teacher, Sun Prairie, WI Sat May 9, 2009

a home. We both have above 700 credit scores...what are our prospects in being able to buy a home? Would it be best to try for an FHA loan? I worry about the fact that I have student loans (these loans are Fed. loans and have less than 2% interest) and we only have 1 income, will that effect our chances?

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Ginny Damman, Agent, Madison, WI
Sun Aug 5, 2012
You should definitely talk to a morgage representative, possibly the bank you are currently with. There are many options to purchase. We know the market and what is available but not the nitty gritty of loans, unless you are a mortgage lender also.. I love working with first time buyers!
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Vivian Schm…, Agent, Madison, WI
Wed Mar 28, 2012
Hi..There is nothing better than owning your own home. With that being said..it is also the largest purchase you will make in your life time. So it is stressful, exciting and continuously changing. The first thing you need to do is meet with a Lender. Go over your financial situation and determine what program will work best for you. There are so many programs available for buyers. I have Lenders that will educate you on the process, share with you which programs you qualify and take some of that stress out of the transaction. Once you know where you are financially...than you meet with an agent like me to show you properties that are in your price point and that meet your criteria. I love working with first time buyers. It is fun and exciting. Please feel free to contact me...@608-513-7989 or vschmelzer@restainohomes.com.
Thank you ...Vivian
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Cindy Ulsrud, , Sun Prairie, WI
Sat Feb 27, 2010
Home Ownership is a huge scarry step but if you have a trusted professionals that can walk you through the entire process, it makes things easier. I have a group of professionals I work with from Lenders to Closers and everyone in between that will be able to answer your questions and give you options under no obligation. You have positioned yourself well to be able to make that decision IF it is right for you.
Feel free to call or email me and I would be happy to put you in touch with great professionals I trust who I know will take care of you and your family, give you options and make a plan to proceed if you choose.
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Peggy Gist, Agent, Hanover, PA
Wed May 13, 2009
You have a lot going for you to start the process of home ownership. You have a great credit score, you have some money saved and you have some credit history.

What you need to determine is how your income ratios balance with your debt load and the person to look at the whole piciture is of course a loan officer that you can meet in person or a local mortgage lender. Teaming up with a REALTOR who can work for you as a buyer's agent will also be key in the success of your home search. The loan officer will be able to determine if your payments are timely and which loans must be counted in the equation.

In addition to FHA financing there is also USDA which requires no money down with 100% financing in qualified areas and income levels. With the money you have saved, this may be the best program. Seller's assistance is also a possibility in closing cost fees.

1. Schedule an appointment with a REALTOR to talk about the housing process
2. Schedule a time to meet with a local lender who can determine the best financing program for you.
3. Give permission to the lender to talk to the REALTOR you have selected so that he can provide her with a preapproval letter.
4. Your agent will then begin the process of a home search based on the type of loan you will need to use, your criteria for a home and the price range you qualify to purchase.
5. Remember, if you purchase a home prior to 12/1/09 and settle prior to that date you will be eligible for up to $8,000 tax credit for the year ending 2009.

Only you will know if the time is right and remember, each time you write out that rent check you are paying someone's mortgage payment for them so it might as well be YOUR mortgage payment.

Good luck to you in finding your first home!
Web Reference:  http://www.seach4pahomes.com
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Sally K. Han…, Agent, Elm Grove, WI
Wed May 13, 2009
Ask a mortgage lender OR ask a realtor for a recommendation for a lender and find out the programs available to you and the rates etc. When you know the payment AND the deductions, you will able to make an informed decision. Happy hunting !
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Kristi Ross, Agent, Monona, WI
Sun May 10, 2009
Great job on the savings and credit scores.

You can go to a bank website or search for mortgage programs and input your down payment, suspected interest, etc and it can show generally what you can afford for a home.

A mortgage loan office will be able to best help you with the best program that is right for you. Just a couple that I have recently worked with clients on is an RHD (rural housing development) loan that does not require a down payment but the property has to be in a certain area. FHA is currently requiring 3.5% down. They are both good rates with a 30 year fixed.

I can give you a couple names of loan officers and you can talk with them and see who you are comfortable with and may have the best program for you.

While they are working on the best mortgage program, we can work on the best home for you. Let me know what you are looking for in a home and I will send you all the current listings.

Let me know if you would like the contact information for the lenders or if you have any other questions.

Good luck! It is a great time to buy a home.

Kristi Ross
Coldwell Banker Success
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Duane Murphy, Agent, Appleton, WI
Sat May 9, 2009
Congrats on the decision to purchase a home. The time to buy has never been as good as we have right now. Low interest rates, reduced home prices, and an $8000 tax credit from Uncle Sam!!!
One of the key components of purchasing your first home is finding a solid lender and a local realtor that knows the market. Those two components together will get you in the game.
If you have not talked to a Realtor yet on what the home buying process details I would recommend calling Chris Ubert. He resides in Sun Prarie and is a Realtor. He has taken great care of everyone that I have talked to. His contact information is


Good Luck!
Web Reference:  http://www.duanemurphy.com
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Linda Willia…, , 54915
Sat May 9, 2009

Congratulations on the great credit scores. That will certainly open up a lot more options for your home financing needs.

The first question I would ask is, how much do you have budgeted for a house payment - principle, interest, taxes and insurance? Knowing this, we can "work backwards" into how much house we can try to pre-approve you for. And, from there determine what type of loan would best suit your needs. An FHA loan might just be the best way to go. However, there might be several options and a mortgage professional could help you sort through them.

When pre-approving someone for a loan, investors will look at credit score, down payment, and your debt-to-income ratio. So, depending on how much that one income is, and what other bills you have out there - if any, will determine the outcome of the pre-approval.

I would suggest contacting a lender to get the process started. Pre-approvals are done at no cost and no obligation to you.

I'm available to help, if you would like. I am located in Appleton, and am licensed to write loans throughout Wisconsin. I've done loans for people moving here from as far away as Europe, so the distance isn't an issue. You can call me or go online to fill out a secure loan application. Whichever you prefer. The process should take less than 24 hours.

Let me know if I can be of service.
Take care.
Linda Williamson
Patriot Mortgage Services, Inc.
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