Should I buy now or wait?

[Anonymous]

Here is my current situation

Monthly Gross Income - 6000

Monthly Debts (car loan, cc) 583 car will be paid off in 24 months

Current Down payment 7000

Mortgage Scores 625,633,639

I am thinking about waiting till next year to buy because I would like to raise my credit scores and save more money for down payment but making the rent payments each month is killing me.

So my questions are

A) How much do you think I could be approved for (30 year fixed rate) do not plan on moving.  

B) Should I wait till this time next year or should I buy now?

Really appreciate all the advise everyone gives on this forum. W

[Anonymous]

Personally I would wait based upon your scores.  Its hard to say what you will be approved for as we need to know more regarding where, any credit profile.

[Anonymous]

I would wait until you can get your middle score above 640. Keep in mind you might also need cash for closing costs on top of down payment.

[Mrsg714]

What's holding your score down? My scores were on the low end cause I had ridiculously high utilization. Once I paid down some cards and paid off others I saw my scores climb in a matter of two months. You might not need to wait a year depending upon your situation.

I definitely recommend saving as much as you can for a down payment and at least part of your closing costs.

[Anonymous]

Something to consider, mortgage rates are at a three year low right now. There is no telling what the rate will be next year...........

[Anonymous]

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@Anonymous wrote:

Something to consider, mortgage rates are at a three year low right now. There is no telling what the rate will be next year...........

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This is one of the main reasons I am thinking about doing it this year vs next year. I know my mid mortgage score will be 640 or above in a few months time. This has been a journey. Started rebuilding my credit late last year and I am finally getting close to being able to buy a house. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Something to consider, mortgage rates are at a three year low right now. There is no telling what the rate will be next year...........

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This is one of the main reasons I am thinking about doing it this year vs next year. I know my mid mortgage score will be 640 or above in a few months time. This has been a journey. Started rebuilding my credit late last year and I am finally getting close to being able to buy a house. 

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Contact a couple lenders and ask them about their minimum credit score requirements. If they do lend under 640, you are likely only looking at 1/8% difference in rate between 620 and 640.

[Anonymous]

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@Anonymous wrote:

Something to consider, mortgage rates are at a three year low right now. There is no telling what the rate will be next year...........

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rates are up about 0.25% compared to this time last year(the fed raised their rate)

[_NERD]

Didn't the Fed announce they're raising the rate three times this year, starting in June? As soon as it was announced they wouldn't raise the rate in April, we made the choice to get in now before the rates go up.

[Anonymous]

My comment about a three year low was based on the following...
"The benchmark 30-year fixed-rate mortgage fell to 3.78% from 3.88%, according to Bankrate's Feb. 10 survey of large lenders. A year ago, it was 3.9%. Four weeks ago, the rate was 4.05%. The mortgages in this week's survey had an average total of 0.20 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4.01%. This week's rate is 0.23 percentage points lower than the 52-week average. This is the lowest rate for the 30-year fixed since May 2013."
Source: bankrate.com/finance/mortgages