Hi All,
This is not a question, as much as it is tracking my journey to homeownership...
I am hoping to buy a home in the next 10 - 15 months. My credit is MUCH better,thanks to these forums, and now I am paying off debt, but in the meantime, I am doing a lot of mortgage research.
And to know the range that I'm considering and to know what I should be eyeballing on the market, I received both a pre-qualification from Chase (letter) [5% down, 155K loan, 4.25%] and a verbal pre-approval from NFCU -currently in underwriting [0% down, $136K]. I spoke to the NFCU Loan officer about my entire situation proposed timeline, etc.
She advised that I lower my DTI for more $ and submitted my file for manual underwriting this morning. i should have a letter in 2-3 days. NOT that it matters as it will expire before im ready to buy. But i feel like I just needed to know what could happen, what could come up, what I might be approved for, etc. Closing costs estimated at $4196 from NFCU.
LO toold me that guidlines require 45% DTI and I'm currently right on the cusp....
I'm also going to a NACA on Saturday to see what its about.
Keeping my options WAY open. =)
My current plan is pay down a lot of debt in the next 10-12 months. So I may qualify for "more house" etc, but I am not too sure if I would even use the whole amount I'm even approved for right now....
I'm in the Austin, TX area - if that matters to anyone.
Current mid-credit score is below - 705.
Income: 65k salary
Same industry/field for 4 years. Job with new company - 1month
Starting Score: 526 EXP 09/2012 600 FICO 10/2012 608 EX (lenderpull)11/2012 
It's currently quoted at 5.875% but is not locked in or anything.
So on Saturday last weekend, I went to the NACA homebuyers workshop in San Antonio -- closest one offered near me in Austin, TX.
It was in a church, about 80-100 people, I'd say. It was about three hours, including some testimonials of people who went through the home purchase program with the San Antonio office. It made me feel good to hear/see people who just finished the process with the exact office that I would be working with, if I choose to go with NACA.
One of the scenarios:
Man & Wife had options for other financing- no real credit issues, OK income, and a little money saved for downpayment, but of course, wanted the best deal. They opted for the NACA program/mortgage product. They did the workshop in March and were in their new home by Oct 1. They have a payment of about $800 (PITI) for a $180K home after they did an interest rate buy-down (used their money originally earmarked as downpayment money to buy down the interest rate).
NACA stopped doing the monthly Neighborhood stabilization fee about a year ago, so no extra fee or PMI added on the mortgage at all.
It seemed great -legit, but certainly a stringent process with submission of a monthly budget, strict adherence to it while in the program, bank statement monitoring, regular pay-stub submission, and payment shock saving.
Its a program filled with accountability - so I think its certainly not for eveyrone, but it might just be for me. The interest rate buy down is the most intriguing part to me. Once i have the divorce papers in hand, I will set-up my NACA webfile (access allowed only after attending a workshop) and then set a face-to-face appt with a Mortgage counselor from NACA.
I scheduled a meeting next week with a woman who I think could be a mastermind. She was connected to me after my approval by NFCU through the Realty Plus program (cash back for purchasing using this program), she's also the foreclosure specialist in her office, and she is NACA certified. So think she could really help me with my search for a home, decision on a foreclosure purchase, and even my lender! We'll see - coffee with her next week.
I'll also be calling my Chase LO next week to follow-up with him. I asked him for advice on how to put myself in a better position with either more puorchasing power and a better interest rate.
Im excited and anxious about all that is to come - I'm not sure which feeling is taking over. Either way, its becoming more and more real to me that I could be a homeowner by next summer.