Hi everyone,
I'm interested in trying to buy a home since interest rates in my area are relatively low and are starting to rise. I figured the best strategy would be to start by looking into different lenders and see what they would pre-approve me at to get a perspective of how much money I can look into loaning. I spoke with a lender on the phone today and they didn't seem overly impressed with my credit situation... so I'd like to run it by on here to see if I can realistically look into getting a mortage anytime soon, or if I should save up and work on my score for a while:
- Credit. I am unsure of my credit score. I was hoping to get a general idea when they checked my credit for pre-approval... but looking at information on this site it seems like I may not get the most accurate description of my score if I do that. If I check my score almost immediately before applying for pre-approvals, will that have a negative effect?
I can tell you my situation: I have two credit cards at the moment. One is a card that is co-signed with my mother, I've had it since 2007. It has a $1,000 limit and payments have always been on time. It currently has $800 on it. My mother has recently gone into bad credit since her and her husband had to foreclose on a rental property that they own. My instinct is to get off of this card, but I don't have very many sources of credit as far as cards go. My other credit card is a Macy's card that I opened in February of this year. It has a $900 limit and is currently completely paid off.
Other than that, I lived in apartments for three years while in college (I moved back home this past December) and was never late for a payment on rent or utilities that were in my name. I currently have student loans that have just entered their repayment period, so I've only made one payment so far.
2. Income.
I am currently making ~29.5k a year on hourly pay.
3. Source of income.
Employment.
4. Monthly debt payments.
I have my monthly student loan payments, and my credit card payment. I noticed in the description of this item on the sticky, it says that cell phones and insurance are not included in the DTI... but the lender I spoke to asked if I had these things in my name. I'm guessing she was trying to use them to determine my credit?
5. Employment
I am currently working full time (40+ hours a week). The industry I'm in is new for me as I got the job about five months ago. Before this I was unemployed for four months since I finished college and moved back to my home town. Before that I was employed in retail for 8 years.
6. Assets/Reserves.
For assets, I have my checking account which currently has $3500 in it. I would like to save up more before actually purchasing a home. Should I save up more money before getting pre-approval amounts?
I also have an IRA with ~$3000 in it.
7. Location.
Pinellas County, Florida. I've looked into FHA loan rates and first time buyer programs and this seems to be the best route... But I'm looking to see all of my options before I really make a decision (Hence looking for pre-approval.
8. Property.
I do not have a specific property narrowed down, as I'm still looking into what I can afford. I am hoping for a single family house that is at least 2 beds 2 bath.
9. Value.
I would like to buy something in the $100,000 range. Based on my own calculations, I feel that $130,000 would be my absolute limit.
10. Occupancy.
This will be my primary residence.
11. Transaction Type.
Purchase.
Basically, what I'm most concerned with is my credit score and whether or not I should wait before looking for pre-approvals.
Hopefully I've provided enough information... thank you for any information you all can offer :-D
