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Need Advice

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courtney091082
Regular Contributor

Need Advice

I need a little advice.

 

I want to buy, we're shooting for next October, that should give us 1 year to save money and feel prepared to go for the loan.  Right now we rent, but we're finding it hard to save money.  Our car payment of $400 will be paid off in September, then we'll be able to save more.  But, we're wondering if we move into a cheap apartment and saved more if that would be a good thing or a bad thing?  We currently pay $1250 rent, but we've got a really nice house for our area too, 3 br 2 ba 2 car garage, nice lawns...could go on and on, but at the end of the day I'm paying someone elses mortgage right.

 

I'm thinking if I could find a cheap nice 2 br apartment, for $600-800 month I would not only save up to $600 in monthly rent but I could save a lot on utilities and lawn care too.  But, does that look bad to a mortgage company? .. to go from $1250 to $600 I don't want them to think we couldn't handle the $1250.  Between DH and I we make 60k year, mine from self employment which I've been doing almost 3 yrs now, and income is good and steady, proving that won't be an issue, but his is considered PT even though he gets FT hours.  He's only been there for 1 year now, thus the reason we need to wait one more year for income qualifications.

 

We'd like to find a house for 150k and put down 20% I know FHA is 3.5% but it's just my goal that I have.  Would really really like to put 30k down.  We don't have any debt other than the car payment which is done after Sept 8th.

 

Any advice would really be nice Smiley Happy
TIA

Courtney

Message Edited by courtney091082 on 08-08-2009 05:36 AM
9/1/2012 ...DRUMROLL .... EQ .. 776!!

I'm FINALLY a homeowner .. 10/24/12!!!!

My Cards ~~~GARDENING~~~ BNSF CU ($1000) BOA ($2500) Amazon / GE ($900) AMEX BCE ($2500) Chase Freedom ($3000) US Bank Cash + (7500)
Message 1 of 7
6 REPLIES 6
DallasLoanGuy
Super Contributor

Re: Need Advice

hard to say.

i know that automated underwriting doesnt like people who move a lot.......

 

but it is a small factor.

 

 

as for going down in rent and what a bank will think...... they will think it was a good plan to save money

Retired Lender
Message 2 of 7
courtney091082
Regular Contributor

Re: Need Advice

Thanks for your reply, I'm really torn, but I think it's best in the long run to save the money.  Surely with 20% down and good fico scores, someone will loan me when the time comes.  I'm sure telling them that the reason for me moving was to save to buy a house should count for something..thanks Dallas!! Smiley Happy
9/1/2012 ...DRUMROLL .... EQ .. 776!!

I'm FINALLY a homeowner .. 10/24/12!!!!

My Cards ~~~GARDENING~~~ BNSF CU ($1000) BOA ($2500) Amazon / GE ($900) AMEX BCE ($2500) Chase Freedom ($3000) US Bank Cash + (7500)
Message 3 of 7
Anonymous
Not applicable

Re: Need Advice

I will say that this is what my husband and I did to save money. We got married, moved into an inexpensive apartment ($840 per month) and started an aggressive debt repayment plan and committing large sums to our savings accounts.  It was great because we were able to save over $10,000 in a year as well as pay off over $8,000 in debt. We'll be debt free (for credit cards, etc.) by the end of this month and we're scheduled to close on our house by 8/31. I don't know how we would have done it otherwise. That small rent payment has been a blessing!

Message 4 of 7
Anonymous
Not applicable

Re: Need Advice

DallasLoanGuy wrote:

 

hard to say.

i know that automated underwriting doesnt like people who move a lot.......

 

but it is a small factor.


I sure hope that is a small factor as the homes I was renting, the first one flipped the house on me about 1.5yrs into the lease, the next owner lost the home to foreclosure a little over 2yrs after my lease so now... I'm with family as I don't want to keep relocating my little girl.  And I sure hope a lender doesn't look down on me for that as it wasn't my fault.
Message 5 of 7
DallasLoanGuy
Super Contributor

Re: Need Advice


@Anonymous wrote:

@DallasLoanGuy wrote:

 

hard to say.

i know that automated underwriting doesnt like people who move a lot.......

 

but it is a small factor.


I sure hope that is a small factor as the homes I was renting, the first one flipped the house on me about 1.5yrs into the lease, the next owner lost the home to foreclosure a little over 2yrs after my lease so now... I'm with family as I don't want to keep relocating my little girl.  And I sure hope a lender doesn't look down on me for that as it wasn't my fault.

 

only a big factor if you have a flimsy file.

strong files need not worry.

 

Retired Lender
Message 6 of 7
Anonymous
Not applicable

Re: Need Advice

I moved from a two-bedroom apartment to a one-bedroom apartment in the same complex in August to save money for a house and we bought in May. We never heard one peep from anyone about the fact that I moved (and I had only lived in the two-bedroom for a year because I moved here for a job.) My (now) husband had lived in his apartment for five years so maybe that's why they didn't care about me moving.
Message Edited by dkjay on 08-11-2009 12:59 PM
Message 7 of 7
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