Credit Card Center Advertiser Disclosure†
12-04-2012 01:31 PM - edited 12-04-2012 01:57 PM
eee! as a first time homebuyer I'm nervous and excited. I cannot tell you how much help myfico has been, and how much more smoothly and stress free loan apps are when you know exactly what is on your credit report! Three years ago, I did not even have enough credit for a score.
Hope I'm doing the right thing, but after renting my entire life, I'm looking to buy a house, especially since I think I can get into a house for approximately the same monthly payment as a decent, market rate apartment in my area. I've been looking at listings and houses for about 4 months, and found one I can live with and am going to put an offer. House I'm considering is about $160,000. So, I am getting pre-qual letters from a bank and my credit union.
Met with the first one today --here's some info you might find useful. Was offered an FHA loan, 3.5 down, at 3.00% (which includes a buy-down based on closing costs offered by the builder); 5 years mandatory mortgage insurance; and a conventional with 5% down at 3.5%; mortgage insurance 1 year/20% equity required. I think my credit union can beat that one.
Scores: pulled a tri-merge score. Equifax score was exactly the same as I pulled from here yesterday (749); Transunion was 758 (middle score) and Experian 790. I was told that they had a 90-day "mortgage shopping" window where the HPs count together. They also said even if I reduced my debt (by paying off car loan) it wouldn't make any difference since I was in the highest bracket.
so, am on my way. Wish me luck!
12-06-2012 01:30 PM - edited 12-06-2012 01:31 PM
Well, no one commented the first time, I guess 'cause I'm in pretty good shape, but I'm ready to enter into the purchase contract now. Went to my credit union today for another prequal, and the scores they pulled were:
Experian Fair Isaac VC (790);
TransUnion Classic 04 (761) and
Equifax Beacon 5 (749).
I talk myself out of the whole thing eveyr ten minutes, then talk myself back in! Such a huge financial burden to take on, but I guess if I don't, I'll never have as good an opportunity.
12-06-2012 01:38 PM
Go for it! You don't want to "what if " yourself down the road.
12-06-2012 02:13 PM
12-06-2012 07:04 PM
Funny you say this because I too have been scaring myself out of moving forward with a purchase. I met with a mortgage broker to find out what else I need to work on to get there, and after they pulled a trimerge she said I'm good now. And now I'm struggling with such a major decision. Manily do I want nice updated home on 30yr or cheap older home on 15yr - plus selecting a neighborhood. Too many decisions for this time of year so I'll wait until next year.
12-07-2012 07:54 AM
I saw that your EQ score matched the same from here. By chance did you pull you TU score from here also? Just curious to see the difference from your TU98 model vs your Lender TU04 model. Thanks and good luck
12-07-2012 07:57 AM
You are doing the right thing! Your scores are awesome, and the market is very good right now for buyers... Definately, you're making the right choices! Good luck to you on your Homebuying journey. I think your journey will be much smoother due to the hard work you've put in maintaining impeccable scores.
12-07-2012 08:03 AM
thanks. and I'm told it only gets worse from here until closing . . .
I thought the same thing! However, my entire process was amazingly fast! From the time I signed the sales contract to the closing of our loan, was exactly 1 month and a couple of days. I even went against the conventional rules and never got pre-approval before signing the sales contract. Everything happened so fast that it was like a whirlwind. So......even though it's sometimes safer to expect the worse, you can sometimes invoke unnecessary anxiety for nothing. Things may go just as smooth as can be!!!!