Just venting, but all encouraging words of wisdom would be appreciated....
First deal on the house - we walked away from after all the hanky panky the listing agent was doing. Not to mention we found a house that was in move in condition, bigger, although a short sale, a few blocks away from the dream Freddie Mac home. Put in an offer on that home.
Now, on the second deal, we have a "ratified" contract. But it's only part one ratified. Ratified between seller and us. It's been a month and counting. Waiting on bank approval...
Meanwhile, I am going nuts with the dang credit and finances!!! argh!!! I have stopped allotments, except for the mandatory ones. I have a set amount going into savings, direct deposit, cuz I want the lender to see I am pretending to have a mortgage now and I save what my mortgage amount would be.
Can someone crawl into the underwriter's head and let me know -- if they see allotments on the paystub, will they want to see those banks statements too? Or would they be satisfied with just the savings account bank statements (where the money have been seasoning) and the adjoining checking account? I save money for taxes in one account, pay my kids rent with another, pay into my annuity with another...I hate to stop that payment too, but should I stop the annuity payment? It's $50 every two weeks...
And then there is the savings....I want to put 20% down on the house, to avoid PMI and escrow. I am not quite there yet...but should be by the time the bank approves or disapproves.
Meanwhile, I have an interest free debt that I have been sending money to. Basically, in a huge effort to raise the FICO score a few points....cuz the lender said it would take the LOWEST FICO score (in October that was 692, in November that was 692) and use that to determine the loan product. Well, a FICO score of 700 gets me a few more loan options...and the only thing holding me back was the interest free debt that is showing on my CR. The amount due is high to the original limit (owe $11k out of $15k).
Yes, I am frustrated!
The earliest I could close, if the bank approves the short sale, is March 2012.
1. Should I stop contributing to the annuity ($50 every two weeks) and use that money for savings? or for paying down the debt? My DTI is fine with the debt in the picture.
2. Should I stop all allotments but one (the savings account) and have everything funnel into one checking account, then pay the bills from there? Bills would be a personal loan, cc debt, utilities, rent, insurance, gas, rent, and food. Only gas is charged to the cc. And it's paid off monthly.
3. Should I stop with my emergency 2012 fund (I put $100 every two weeks into that and it does not count towards my down payment)? I currently have about 10k out of reach in a CD as that fund.
4. Should I pay the minimum on the debt until the house is bought, the mortgage done, saving all I can? Then massively paying everything I can towards the debt? The debt has to be paid off by July 2012.
OR
Should I continue paying as much as I can on the debt and hope that I have 20% by the time I close? I am short by about 6k for 20% down and closing costs.
5. And the last question - should I go for a 5/1 ARM (raises 2 pts) or 7/1 ARM (raises 2 pts)? The 7/1 ARM has a higher interest rate and my payment would be higher by about $100 a month. We will be relocating in about 4, 4.5 yrs...so the house will be sold then.
*whew* Glad that is off my chest...can't wait to read responses.
