cancel
Showing results for 
Search instead for 
Did you mean: 

Need to move sooner than i thought!

tag
cazz
Regular Contributor

Need to move sooner than i thought!

Hey guys.. i wanted to buy a home in March 2014 because my lease for my apartment isnt up until January 31st 2014 and i usually receive my taxes around the second week in february. I was also giving myself sometime to raise my scores i need my middle to be at a 640 and its currently 620...i was in the 400's so ive came a long way but i recently called my leasing office and they told me that when my lease is up they dont do month to month payments unless i do 2 months at a time!!!well i dont want to stay 2 more months especially since they require payment upfront if i dont sign another lease...

 

So this year since i only have 1 job i only have to wait for 1 W-2 to come in soi realized that i can have my taxes back before the end of my lease..which means i only have until November to get my scores up because i have to give my apartment complex 60 days notice so what would be the best time to apply for a loan? Since my lease is up January 31st is applying in December going to give me enough time to close on a home?? 

Message 1 of 3
2 REPLIES 2
HoldingOntoHope
Valued Contributor

Re: Need to move sooner than i thought!

60 days is enough time to close a loan assuming that there are no complications. Have you sat down with a mortgage lender to determine what type of loan you would be applying for? And you will need to find out exactly what documentation they will need and how much funds you will be required to prove. Remember that funds that are not in the bank for a period of time to be considered "seasoned" are going to raise questions. This usually means they must be in the bank for 60 days before your loan application. This does not include regular payments such as wages or rental income.

 

You should also have an idea of what area and type of home you would like to purchase. You will be excluding short sale or bank owned properties on such a tight time scale as they would take longer. And if the real estate market is hot in your area it could cause a problem with waiting for offers to be accepted. Any major problems with a home that requires repairs or it's appraisal value not meeting the purchase price could also derail the plan.

 

As a backup I would definitely be thinking about where else you could go on a short term basis once your lease is up, or secondarily just pay the two months and move out ahead of time if it all works out and chalk it up to the expense of becoming a homeowner.Smiley Wink

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL


Take the FICO Fitness Challenge

Message 2 of 3
cazz
Regular Contributor

Re: Need to move sooner than i thought!

Thank you for that advice i have spoken with the mortgage lender and they offer a conventional loan with 3% down and also a "toolbox mortgage" which i think is just an fha 203k loan. I'm also going to do the OHFA (Ohio Housing Finance Association) down payment assistance program which i plan to start early because it takes 30 days to complete. Ive been looking at homes for months now and working with a real estate agent as well. so im pretty much ready to go im just waiting for my middle score to hit 640 then ill apply..  And i didnt know that they get suspicious about what funds i have in my bank account  but thanks for the info

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.