Re: What a mess! Do you think we'd qualify?[ Edited ]
10-04-2012 09:07 PM - edited 10-04-2012 09:09 PM
Unfortunately, we don't have 3k in savings. Once we're married (at the end of the month), we'll be able to save up that much easily in a couple of months, but right now it's not in the finances since we're living apart at the moment since he's in the military. Our seller is paying 1500 of the closing too.
I'm just worried that in the wait to save up 3k, this perfect opportunity of a house will be sold. This house is actually the whole reason we considered buying in the first place. It's not a starter home, a family home, or a retirement home....it's all three in one with more space and potential than anything we ever hoped to find. I have applied at a local mortgage company tonight and will be going up there tomorrow to meet with the loan officer in person. The over the phone stuff with a loan officer that I never meet is for the birds. I want to look them in the eye when I lay out all our stuff and assure them that we are ready financially and mentally for home ownership. We may not have much in savings now, but my financial plan has us with at least 6k in savings by April, and that's IF I dont get the promotion that I'm up for at work. If I get it, it'll be more like 8 or 9k.
We had considered FHA as well, but our savings at the moment arent enough. I thought about a 100% USDA loan, but I've heard the funding for that is pretty lengthy and difficult to get. Any thoughts on those?
Best advice - you are not ready to pursue a mortgage. VA will allow you to roll the funding fee into the loan, but by the time you get finished with closing costs and all the prepaids, you will still need to have several thousand in liquid cash to close, and you are going to want to be able to demonstrate 3 to 6 months of reserves post closing, lest you find yourself in a mess. VA appraisers are also notoriously picky and have been known to derail more than a few deals.
Take some time, clean up your credit and work on saving, then try again in 6 months to a year.
Amex Platinum NPSL - Citi HHonors Sig. $58k - BMW Ultimate $40k
Chase Sapphire Preferred $62k - Merrill Lynch + Signature $41k - USAA Rate Advantage $28k
NFCU Flagship Signature $50k - USAA Cash Rewards AMEX $28k
Citi Platinum Select / AAdvantage Signature $31k - Chase Amtrak Rewards World MC $41k