First time buyer, first time here at "mortgage loan", FHA approved!!!

[Anonymous]

I have always been active in the credit card and auto loan forum, this is my first time here in the mortgage loan section. Recently, I decided to stop paying rent and stop moving around, and actually start looking to buy one of my own place. I saw the ad on TV and I called Bank of America Home Loan division. Easy 10 mins, I am now FHA approved for the amount I wanted. What's my next step? Would there be something I should to do to increase my score or credit-wise to score something better?

[Anonymous]

I don't think you need to mess with raising your credit scores unless you have a 20% down payment and want to try to go conventional. Those scores are good, and raising them won't help you get a better FHA rate. Your next step is to find a house, submit an offer, and apply for a loan once you're under contract. At that time you can shop around and see who can give you a better rate.

[Anonymous]

Eiso,

I'm in the same boat you are.  What was your "target price" you were going for?  That would aid my general knowledge.  The only information I can base it off of would be your credit score (since our income + debt is probalby different) but it would be a big help.

Thanks!

EQ: 682 (7/24/2009)
TU: 715 (8/3/2009)

Message Edited by Cyan007 on 08-03-2009 04:55 PM

[homewardbound]

Buy in the range you are comfortable with, general rule of thumb is your total monthly mortage should be no more than 28-30% of your monthly gross pay.  Ask a loan officer for some good faith estimates in the range you are thinking to buy in and go from there, they can help you get an idea of what your montly payment would be.  The amount of house you qualify for depends not only upon your score, but moreso upon your debt to income ratio.

[Anonymous]

I was originally pre-approved for $80k. I think I underestimate myself way too much because I wanted to pay my house off in 5-10 years. Many advised me to go for a new home for $150k. Now that my girlfriend is willing to do this together, I'm looking into re-apply for a $150k mortgage. My FICO are around 730 from my previous inquiry 2-3 weeks ago.