First Time Buyer looking for advice and suggestions.

[eddymvp]

I'm thinking of purchasing my first house this coming spring. By that time I would have around $5K to pay for the closing cost. 

This year I made about 75K. 

My scores are around 650s. I'm waiting for my score to go to atleast 700 before I apply. 

What else should I be considering before even applying for the loan? I'm looking to buy a house under 200,000.

[Anonymous]

I'd strongly recommend applying from at least 3 lenders at the same time. The market is so tight right now and eligibility for loans no longer is following traditional guidelines. If one bank learns of the another bank turning you down you may have trouble finding a loan- at least that's what happened with me despite excellent credit rating and large down payment. They blamed it on stricter Fannie Mae appraisal standards. In my case, the house I wanted to buy did not have enough similar and recently sold comparables so nobody was wiling to give me a loan from anyone.

[ShanetheMortgageMan]

Help the FICO Forums help you (with your mortgage qualification questions)

[Anonymous]

I suggest you wait. Lots of pain to come (more trillions in home values are going to be wiped out). Alt-A and Prime loans are coming up to bat to get clobbered!

Prices will continue to fall, more inventory, more people out on the streets poor.

Worst time to buy. Evar.

See the recent 60 minutes (viewable online). Also look up the Credit Suisse ARM loan reseat chart. And of course Professor Shiller's graph (google any one of them to see them).

Housing is still over valued in most metro markets.

[Anonymous]

Its a fine time to buy as long as you know the market, know your financial situation clearly, have a stable job, and plan to stay in place for awhile...  Even if the market drops some more, over time you will recover any money when prices recover and as you pay equity.  All the while you will be getting tax benefits and (if you are a first time homebuyer) there is the 7500 tax credit to consider.

All in all, if you WANT to have a home rather than rent, have the financial means to upkeep a home, and know you are not moving and can stay put for awhile, there is no reason to not buy in this market.

[Anonymous]

Hi all - haven't been on the board in awhile........ Kudos? I'll have to look that up?

From the sounds of you trying to reach 700 first, you might be looking at sometime in 2009 anyways?  Hopefully, HOPEFULLY...things will start on the upswing early 2010.  So 2009 should be a good time to buy. 

And If you think your capable of handling it (collecting rents, manageing tenants, minor home repairs, etc)   I always reccomend buying Multi-Family, even for a first timer.  You can always move later into your "dream home"   It's a great way to get some investments started.  

If you get a decent  interest rate, the rents can sometimes pay most or all of your mortgage.  If all the pieces fall into place, you can even get a positive cash flow going!!

If things start on the upswing 2010, you will have  gained some great equity, developed some savy investor skills,  managment experience, etc etc.   And your on your way....

Good Luck to you...

[eddymvp]

I'm looking to buy a one family house. My gross salary is $75K/year, which average around $4,500 net pay a month.

I can afford a morgate under $1,200. I've been in the same job for a year and a half.

My Current utitilies are:

rent: $810

electricy bill: $50 average

student loans: $ 260

Cars payments: $500

Cars insurance:  $230

credit card payments: $500-$1000

misc bills: $500-$1000

Credit card balances:

Capital one: $600

HSBC: $630

Juniper: $200

 DCU: $1,200

CareCredit: $2,300

Once I paid off all my creditcards which I hope to do within the new few months, I will be able to save $2K a month  since all my bills together will be under $2500.

[ShanetheMortgageMan]

While your income/debts look fine to qualify for a $200k home, assuming rates go up to 6% in the spring, $200k sales price, 3.5% down, would give you a $1,157/mo payment.  Throw in mortgage insurance that brings it up to about $1,250/mo.  If you estimate your property taxes are $2k/year, and your homeowners insurance is $600/year, that'd be another $216/mo, or $1,466/mo... which is over your $1,200/mo target payment.  If rates stay low, figure about $120/mo less on the principal & interest portion of the payment.  If you have more funds for the down payment than just 3.5%, that would reduce your payment as well.  Once you are on the job for 2 years it should be no problem, and even if you aren't, then as long as you were in the same industry/paid the same way for 2 consecutive years it should be no problem either.