What to do!! Potential 1st time Buyer

[Learning_Tee0225]

I currently am living in a condo that the owner needs to sale. They have given me the opportunity to purchase the condo before they open it up to others and im intrested in the opportunity, but not sure if im able to purchase a home. 

Quick run down:

Credit is not too great around 620 however that is my Fico score not my Mortgage score. Ive yet to check that but cant imagine it being any higher.

1 collection paid off showing on my reports

Car Pymnt  11,000 left pymnt of 414.  @ intrest rate of 7.29. Was going to refinance to get paymnet lower to help DTI. Not sure if i should do it now or after though.

Credit cards are not maxed but at least 40-85% utilization on 4 cards.

late charges (3) im going to see if i can get removed from 2014

The agent selling the condo has said he will help with seeing if I can qualify, however he is selling the condo on behalf of the owner and I want to make sure I'm represented as well. Would it make more sense to get a different agent?

Landlord is selling condo for 279k in CA and has said they are willing to discount it for me.

My mother is willing to go in on the purchase with me her credit is around the same. Car note $378 and credit debt less that 30%. no baddies

Total income between us both is 91k. Stable work history me 10 yrs her 7 yrs. 

FHA loan is out of the question at the moment because Condos do not accept FHA financing.  

What to do what to do...any help or input would be helpful.

Even thinking of just renting an apartment and taking care of DTI, refinancing and then applying in 6 months or so. Just dont wanna loose this deal love this area.!

[Anonymous]

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@Learning_Tee0225 wrote:

I currently am living in a condo that the owner needs to sale. They have given me the opportunity to purchase the condo before they open it up to others and im intrested in the opportunity, but not sure if im able to purchase a home. 

Quick run down:

Credit is not too great around 620 however that is my Fico score not my Mortgage score. Ive yet to check that but cant imagine it being any higher.

1 collection paid off showing on my reports

@Anonymous Pymnt  11,000 left pymnt of 414.  @ intrest rate of 7.29. Was going to refinance to get paymnet lower to help DTI. Not sure if i should do it now or after though.

Credit cards are not maxed but at least 40-85% utilization on 4 cards.

late charges (3) im going to see if i can get removed from 2014

The agent selling the condo has said he will help with seeing if I can qualify, however he is selling the condo on behalf of the owner and I want to make sure I'm represented as well. Would it make more sense to get a different agent?

Landlord is selling condo for 279k in CA and has said they are willing to discount it for me.

My mother is willing to go in on the purchase with me her credit is around the same. Car note $378 and credit debt less that 30%. no baddies

Total income between us both is 91k. Stable work history me 10 yrs her 7 yrs. 

FHA loan is out of the question at the moment because Condos do not accept FHA financing.  

What to do what to do...any help or input would be helpful.

Even thinking of just renting an apartment and taking care of DTI, refinancing and then applying in 6 months or so. Just dont wanna loose this deal love this area.!

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You should pull your mortgage scores ASAP. Can't really give you advice if you wouldn't even qualify for a conventional loan. But with what you have presented, a conventional loan with scores that low would be tough. You would have to present more info such as the monthly credit card debt, the mortgage scores, and the down payment amount. And it would be in your best interest to retain a buyer's agent and not use the seller's agent. You need someone who is committed to getting YOU the best deal and not the seller.

[Learning_Tee0225]

Thank you for your response.

How do i go about getting my mortgage scores? Are they the same ones i get with myfico? 

The agent has sent me an application to apply, which i assume he will then have my mortgage scores. Should i just let him or another agent do it? Or do it myself? Does it hurt me in an way if I allow him to check but later decide to use another agent? 

Sorry for all the questions Im just so new to any sort of real estate transactions.

[Anonymous]

To get your mortage scores you need to purchase:

http://www.myfico.com/Products/FICO-Score-3B-Report/

I just did it today myself, and the Mortage scores are different then your Fico scores.

[Learning_Tee0225]

Thank you!

[Anonymous]

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@Learning_Tee0225 wrote:

I currently am living in a condo that the owner needs to sale. They have given me the opportunity to purchase the condo before they open it up to others and im intrested in the opportunity, but not sure if im able to purchase a home. 

Quick run down:

Credit is not too great around 620 however that is my Fico score not my Mortgage score. Ive yet to check that but cant imagine it being any higher.

1 collection paid off showing on my reports

@Anonymous Pymnt  11,000 left pymnt of 414.  @ intrest rate of 7.29. Was going to refinance to get paymnet lower to help DTI. Not sure if i should do it now or after though.

Credit cards are not maxed but at least 40-85% utilization on 4 cards.

late charges (3) im going to see if i can get removed from 2014

The agent selling the condo has said he will help with seeing if I can qualify, however he is selling the condo on behalf of the owner and I want to make sure I'm represented as well. Would it make more sense to get a different agent?

Landlord is selling condo for 279k in CA and has said they are willing to discount it for me.

My mother is willing to go in on the purchase with me her credit is around the same. Car note $378 and credit debt less that 30%. no baddies

Total income between us both is 91k. Stable work history me 10 yrs her 7 yrs. 

FHA loan is out of the question at the moment because Condos do not accept FHA financing.  

What to do what to do...any help or input would be helpful.

Even thinking of just renting an apartment and taking care of DTI, refinancing and then applying in 6 months or so. Just dont wanna loose this deal love this area.!

---

It's hard to tell without looking at concrete numbers to calculate DTI. Conventional loans will go as low as 620, however the rate will be higher. My pricing engine spat out between 4.5%-4.625% for a 620 score. PMI will be double what FHA's mortgage insurance is too. If you are okay with the higher rate and PMI, you may have a chance if you both are over 620.

Fannie Mae won't do blended ratios (using income/debts of a non-occupying co-borrower), but Freddie Mac will.

[Anonymous]

Six months from now, there will be another good deal in your area. A year from now there will be another good deal. Look at comparable properties. If you wouldn't save at least $20,000-$40,000 buying that one rather than a comparable property a mile away, it's not a special deal. It's just convenient.

You can significantly increase your FICO scores by paying down your credit cards to 3%-9%. If paying down those cards would be really tough for you, you might not yet be financially ready to make a $280,000 commitment. (In fact, just given that it takes you and your mom together to have $90k income, that $280k commitment seems questionable. There's no better way to cause family drama than do a big financial deal with family. At least not with your pants on) .

If you're struggling with getting those cards paid down, something like Financial Peace University might be a good next step.

[Anonymous]

I had one other thought on this. Since the seller WAS leasing it to you, they might be willing to finance most of the sale ,as a seller finance. You'd pay $7,000 or whatever down, putting cash in their pocket right now, then continue to make monthly payments. For the seller, it's kind of halfway between continuing to lease it to you and selling it. Depending on their situation, it might work perfectly.

HOWEVER, if they've already signed paperwork with the agent that makes things more difficult. The agent will expect to get their $8,000 commission up front. Too bad the seller didn't talk to you before they talked to an agent, but maybe they haven't signed with the agent yet, or the agent will take a discounted commission in order to get it sold fast without much work.

Otherwise, you'd likely need a bank to finance part of the purchase- at least enough to pay the agent and give the seller however much cash they need right now.

[Anonymous]

I mentioned $8,000 commission. The full commission is twice that, but th selling agent normally splits that with the buyer's /showing agent. So IF you worked out a seller-finance and didn't have your own agent to pay, the seller's agent may accept $8,000, but the full amount is twice that.