Right time to start mortgage process?

[Anonymous]

When should I start mortgage process?

Here are my details.

Our current rental lease expiring on Sept/30/2012, I have two payments remaining on Auto loan. One of my CC has 2,400 @ 0% with 5,100 limits I pay $200 / month.

Total CC limit is 45,000, rest CCs I PIF, no other debt.

Should I wait for couple of months, payoff auto, some CC and save some money on lease breaking? I am supposed to give 60 days’ notice and would cost around $4,000 otherwise.

Credit	All FICO Scores: 770+ NO negatives, little over 6 years of credit.
Income	2012: would be same as 2011 2011: $124K 2010: $100K
Source of income	Employment
Monthly debt payments	CC: $100.00 Car: $300.00
Employment	6 years with same employer
Assets/Reserves	Will put 20% down
Location	IL
Property	Single family house / condo / townhouse
Value	Up to $250K
Occupancy	Primary residence
Transaction Type	Purchase

[namvet]

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@Anonymous wrote:

When should I start mortgage process?

Here are my details.

@Our current rental lease expiring on Sept/30/2012, I have two payments remaining on Auto loan. One of my CC has 2,400 @ 0% with 5,100 limits I pay $200 / month.

Total CC limit is 45,000, rest CCs I PIF, no other debt.

Should I wait for couple of months, payoff auto, some CC and save some money on lease breaking? I am supposed to give 60 days’ notice and would cost around $4,000 otherwise.

Credit	All FICO Scores: 770+ NO negatives, little over 6 years of credit.
Income	2012: would be same as 2011 2011: $124K 2010: $100K
Source of income	Employment
Monthly debt payments	CC: $100.00 Car: $300.00
Employment	6 years with same employer
Assets/Reserves	Will put 20% down
Location	IL
Property	Single family house / condo / townhouse
Value	Up to $250K
Occupancy	Primary residence
Transaction Type	Purchase

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You are good to go now.  Most lenders would be more than happy to take your application for a home loan.   All you need is about 2% cash reserves after down payment and closing costs are paid. 

[frogfan12]

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@namvet wrote:

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@Anonymous wrote:

When should I start mortgage process?

Here are my details.

@Our current rental lease expiring on Sept/30/2012, I have two payments remaining on Auto loan. One of my CC has 2,400 @ 0% with 5,100 limits I pay $200 / month.

Total CC limit is 45,000, rest CCs I PIF, no other debt.

Should I wait for couple of months, payoff auto, some CC and save some money on lease breaking? I am supposed to give 60 days’ notice and would cost around $4,000 otherwise.

Credit	All FICO Scores: 770+ NO negatives, little over 6 years of credit.
Income	2012: would be same as 2011 2011: $124K 2010: $100K
Source of income	Employment
Monthly debt payments	CC: $100.00 Car: $300.00
Employment	6 years with same employer
Assets/Reserves	Will put 20% down
Location	IL
Property	Single family house / condo / townhouse
Value	Up to $250K
Occupancy	Primary residence
Transaction Type	Purchase

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You are good to go now.  Most lenders would be more than happy to take your application for a home loan.   All you need is about 2% cash reserves after down payment and closing costs are paid. 

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+1

Happy house hunting/purchasing.

[Anonymous]

You'll have what they call a "thin file", so I wouldn't worry about the financing side - in fact I would advise shopping around for the best rate since you should have plenty of lenders eager for your business.

In terms of how soon to start looking at houses, that depends on the market in your area, and if you are going to consider short sales etc. Personally I would say no harm in starting now, if you happen to find something you love and need to move early so be it, but you'll have plenty of time to find the perfect place.

[r1lukasz]

If my income was 124k a year I will not need a mortgage

[Anonymous]

Other thing that I have in mind is should I go for pre-approval now as it will be valid for 60 days or so? How should I select lender and even real estate broker? I have account with CU, may be that should be the first place I should look.

Thanks,

NC

[boomhower]

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@Anonymous wrote:

Other thing that I have in mind is should I go for pre-approval now as it will be valid for 60 days or so? How should I select lender and even real estate broker? I have account with CU, may be that should be the first place I should look.

Thanks,

NC

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I'd wait.  The pre-approval is good for 60 days but if your not really shopping yet it will likely expire before you close and they will run your credit again hitting you with another inquiery.  You file is a no-brainer.  Get your pre-approval when your ready to move forward.

[Anonymous]

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@boomhower wrote:

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@Anonymous wrote:

Other thing that I have in mind is should I go for pre-approval now as it will be valid for 60 days or so? How should I select lender and even real estate broker? I have account with CU, may be that should be the first place I should look.

Thanks,

NC

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I'd wait.  The pre-approval is good for 60 days but if your not really shopping yet it will likely expire before you close and they will run your credit again hitting you with another inquiery.  You file is a no-brainer.  Get your pre-approval when your ready to move forward.

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Do they have to run credit to give pre-approval? Can't they look bank statements last few months, printout of Amex CreditSecure and most updated EQ / TU report with FICO score?

[frogfan12]

They will run your credit. Otherwise, they would not have a realistic picture of your credit worthiness just by looking at bank statements. Bank statements don't tell them all they need to know.