Am I ready?

[jonjohn]

Ok.. After a 1 1/2 years of preping for my home purchase, am I ready? I got my credit score up to 680 for both TU and EQ. I have no credit card debt left. I have student loans and a car payment that equals less than $600 a month. My monthly income (before taxes) is about $4,700. I am scared to do a "pre approval". Am I ready? Experiences and opinons please... And, FYI I am living in the home that I am about to purchase, so I don't have to "search" for my home.

Thanks for all your input.

[Booner72]

From what you say it sounds okay - Why not pull the plug?

[foofighter74]

As long as you have the cash available for the down payment and closing costs, there's no reason to wait.

[jonjohn]

I do have the down payment avl.... I am just being a chicken.. I was trying to get to 700 and up, but not sure how long that will take.

[tammyjk]

I would do it now if you can.  Sounds like you've done your homework and youre ready.  Interest rates look like they are only going to go up from here.

[Elcid89]

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@jonjohn wrote:

Ok.. After a 1 1/2 years of preping for my home purchase, am I ready? I got my credit score up to 680 for both TU and EQ. I have no credit card debt left. I have student loans and a car payment that equals less than $600 a month. My monthly income (before taxes) is about $4,700. I am scared to do a "pre approval". Am I ready? Experiences and opinons please... And, FYI I am living in the home that I am about to purchase, so I don't have to "search" for my home.

Thanks for all your input.

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As long as your DTI is workable, I'd say that you are ready. I second the advice about rates going up shortly - most likely we're going to start seeing significant bumps beginning around September.

[jonjohn]

My DTI is workable.. I only have $591 (auto and student loan) and basic living (utilities, cable and mobile) nothing else. I average $4,700 before taxes sometimes more sometimes a tiny bit less (give or take $100). I am paying 125K for the house with about 15K down. And, there is a rental unit on the other side which their rent is $670 a month. I think I am ready, but I am scared.. Seriously! lol

[Elcid89]

Yea, current FHA guidelines would give you $1,363 for allowable total mortgage payment and $1,927 for all obligations. At a SP of $110,000 you should be fine.

I'm not 100% on the guidelines with regard to rental income being factored in . I believe that you have to have a signed lease and have collected at least 3 or 4 on-time rental payments from the tenants, but double check that.

In any case, you should be ok even without the rental income. No need to be scared. Just find a loan officer / bank that you feel comfortable with and get it started. If you can, you really want to have your rate locked in before September.

[jonjohn]

I plan on having the contract written up at the beginning of July.. We are doing this transacation without a real estate agent. However, my friend who IS a real estate agent said she would draw up the aggrement for me. What do you think I should give her for doing this for me? $500???

[jonjohn]

The tenants have been there since last October. I am "pretending" that they aren't there. I don't want to have to rely on that income.

Thanks for all of the great information. I just had an inspection today for an estimate on a crack in the foundation. I want it fixed before we go thru with this. I don't want it to hold me back or delay anything.