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A home in the housing sub-division that I want to live in was recently listed. I hadn't planned on purchasing at this time but the price of this home is about $ 40,000.00 less than the typical home in that area. Here are my circumstances:
Employed at same job for 20 years, salary - 55,000.
First time home buyer, single
Home listed for 190,000
Cash on hand: $ 5,000.00.
Own auto out right.
Credit scores: Trans - 741 Eq - 718 Exp 742
Owe: Student Loan - 20,100, Credit card debt 8245, (available credit 36000).
Last late June of 2006, three total. . .30 days late.
No other blemishes on credit.
Am I dreaming?
Credit scores look fine. You will need a little more cash on hand...FHA is 3.5% down, plus you would either need the seller to pay all of your closing costs, or you would need cash for that too. (sometimes people can roll that into the loan by having seller pay and increase selling price)
You will also need to calculate your DTI ratios, front and back. You need to include taxes, PMI, etc for your new house note.
Thanks smack. . .
The very first thing I did when I was ready to dip my toe in the water of home buying was to go speak to a lender or two. They can run all the numbers and give you an idea of what you can (can't) afford. They'll have different loan options, and may have special programs with low down payments. They'll also know if you'd qualify for any county or state first time home buyers programs.
I had a great experience with the loan officer at my local bank. I grilled him mercilessly on details (questions generated from studying these boards ad nausem), but in the end I felt really good about my decision.
You're not committed to anyone to just go and get a fee estimate, to get their current loan rates (if they don't publish them on their website). It's worth the time.
With rates where they are (especially FHA rates) and this being a complete buyer's market nationwide, it would definitely be worth it for you to look into some options you may have to purchase now.
Good luck...let us know how it goes!