Mortgage Loans

[FICOisa4letterword]

https://www.efanniemae.com/sf/ns/hpreo/pdf/mortmatrix.pdf

This matrix lists the rules and regs, including required FICO scores, for lenders selling a Fannie Mae HomePath mortgage. Posting for those who may look to qualify in the near future (like me)!

[Booner72]

We bought a homepath last summer and I can't say enough good things about that program.  But i didn't use the financing bc FHA was a better route to go,even without having to pay the PMI.  The interest rate was about a point higher than FHA>

[FICOisa4letterword]

We have our eye on a HomePath property right now. We won't have our down payment saved in full until end of May, however. So we shall see if it's still around by then for us to make an offer. It's been on the market since January...just need it to hang out there 6 more weeks!

[Booner72]

You don't need your down payment til closing, and LOOORRDD knows, it takes that long to get to closing.  Have you thought about starting the offer process (are you preapproved?) and just make sure closing is pushed out that long?

[FICOisa4letterword]

This is our first home purchase and we are really unclear about what we need at each step in the process. Our fathers are deceased, our moms are clueless, and so we are just left to scour the Web to try and figure out what we are doing. ;-) I was under the impression that we would need to have the down payment in the bank at the time we made the offer because that's when we would officially apply for the mortgage. I take it that's wrong? If so, that may change a lot about our proposed timeline.

We are not yet preapproved. The lender we've been speaking with told us not to apply for preapproval until 21 to 30 days before we are ready to make an offer. I was assuming that would be end of next month because of the downpayment, so we were thinking we would apply mid-May.

I noticed your FICO scores in your signature, were those final? Right now my EQ FICO is 658 and my TU (on here) is 694. My hubby's EQ is 669 and his TU is 684. Our salaries total $153k and our only debt is for my car which is $740/mo. My husband has a car note but it pays off in August ($613) so I believe it will be excluded since there are less than 6 payments remaining.

Baddies include 2 almost 3 year old medical collections for me totaling $500 and one 4 year Old utility for $89 for my hubby. The lender said not to pay these unless instructed to do so.

Do you think we are ready?

Thanks for the help!

[Booner72]

The scores that are from August when we closed on the house were my final scores, yes.

The only money you need to make an offer is "Earnest Money" - probably not more than 1000.00.

Where is the DP money coming from?  In order to get a "clear to close" you are going to have to have that money - so technically, you need the money before the file goes to the Underwriter - which is only about a week to tend days prior to the clear to close.  From the time I had a signed purchase agreement w/ Fannie Mae to closing, was less than a month.  But I guess the "usual" is 60 days.  I had been sitting on a short sale and ended up with this house, so we were ready in the loan department end.  My LO just finalized things up, sent it off to the UW (After the appraisal).  I had a post of every single day's accounts of buying the house you should read.  I'm going to go bump it for you. 

If you are SURE you will have the downpayment and closing costs come Underwriting, then Yes, I Absolutely Think You Are Ready!!!

Mind you, you will need 400-450 for an appraisal, and 350-400 for an inspection -and if the inspector refers you to  a specialist (Plumber, electrician) you've got those bills, too.

Definitely have your LO Decide if FHA is

[FICOisa4letterword]

Booner, you are a tremendous help. Thanks so much for continuing to reply! 

Because we've recently paid off all our credit card debt, we have approximately y$3,000 leftover each month after rent, utilities, insurance,car notes, gas, food, etc. to put towards the down payment and out of pocket costs, like the appraisal.

Right now we have about $3k, by then end of this week we'll have $6k, mid-May $9k, mid-June $12k, and $15k by July if closing takes that long.

It's exciting to be getting closer and closer!

Thanks again!

[Booner72]

WOW! 3k is a lkot of extra money to not throw away on bills! WooHoo for you!!

[FICOisa4letterword]

Heard from our realtor this afternoon. She spoke to the listing agent and they were expecting an offer today. *Sigh.*

[Booner72]

Offer Schmoffer.  The house we got was under contract the whole time we were under contract w/ the short sale.  i kept admiring it and looking at it and wanting it but never thinking I had a chance.  Just when we were out looking, up it popped again!  Keep your eye on it.  They also have things like "Back up offers" - that way if something falls through with #1, you're right there.

But if this isn't the one, then it isnt'.  The one you are meant to get you will get.