When to apply?

[tianapb725]

My lease is up in February and I think I'm finally ready to buy.  The entire process is nerve-wracking to me, but it's time!  So, when should I start the application process so I don't have an overlap of rent.  Also, how reliable are the free credit scores that my CC give me?  I get them from Discover and Juniper and I'm over 800 (awesome!), but I know mortgages use a different FICO formula, so I want to be prepared.

Thanks!

[ShanetheMortgageMan]

If your scores are ~800 on the reports you get, then they should still be real good on the reports that a mortgage lender pulls.

If your lease is up "in February" (like ends on 1/31/15?), then you'd want to have close on a home at least a week or two prior to then.  Typically from the time you make an offer until you close is 30+ days (some areas 45-60 days can be typical, just depends on local custom), and it may take you anywhere from 1 week to months to find a home depending on how picky you are and what the available inventory is.  So at the very latest I'd say early November, if you are on the pickier side then even October wouldn't be a bad idea.

[tianapb725]

It is up 2/15/15...I would have a little wiggle room with my landlord (maybe a couple of weeks), but the HOA requires a 90 day minimum lease, so I'm trying to avoid that.  I'm in Western Mass, so I would imagine housing availability would be light in the winter time.

[ezdriver]

Coordinating a home purchase with a lease end in such a way that you have no overlap is near impossible ... but it can be done. Pulling off such a feat successfully requires the cooperation of a lot of people hence the difficulty in doing it successfully. You can't know how long it will take you to fina a home that you like, secure financing and a closing date then getting your landlord to cooperate fully. The best that you should try to do is to go month-to-month on your lease and accept that you may have some overlap.

As a sales counselor for a national home builder, I arrange for my company to buy out the leases to frre my buyers to close on a home purchase with me. You may want to consider asking builders to do just that if you will be considering new construction.

[tianapb725]

I was actually month to month for over a year and the HOA said nope, we require 90 days leases.  So, I was beyond aggravated and so was my landlord as she didn't want a good thing to be soured by them, so I had to then spill the beans to my landlord that I was thinking of purchasing next year and did not want to get into another year lease.  So, here I am in 6 month lease, but trying to mentally and financially prepare for the future

[ezdriver]

Regardless of your lease situation, pursue the purchase as that is future. Move into shorter-term housing if necessary to accomodate your home-purchase pursuit.

[tianapb725]

Thank you Shane and EZ!

[tianapb725]

Took your advice Shane and spoke to a lender and started the process now, so I don't have to rush as the date gets closer.  I was nervous, but I was preapproved for $210K!  Going to look for a more comfortable range of $170K though

Thanks for the help!

[Anonymous]

Congratulations!!  Starting the process, I hear, is nerve wracking.  One solution for the living situation could be to pack up your household goods and store them and live in a hotel with a weekly or monthly special.