topic Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY??? in Mortgage Loans

LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

cazz — Thu, 22 Aug 2013 20:56:28 GMT

HEY GUYS I HAVE A QUICK QUESTION... IVE BEEN WORKING ON MY CREDIT FOR ABOUT 6 MONTHS AND I FINALLY HAVE MY SCORES WHERE THEY NEED TO BE TO APPLY FOR A MORTGAGE. THE ISSUE IS MY LEASE ISNT UP UNTIL JAN. 31ST 2014 AND I DONT WANT TO BREAK MY LEASE BECAUSE I WANT MY SECURITY DEPOSIT BACK BUT EVERY HOUSE THAT I LIKE IS COMING AND GOING SO QUICK!

SO IF I APPLY IN OCTOBER WILL THAT BE TOO SOON TO CLOSE BY JANUARY? OR SHOULD I JUST WAIT UNTIL NOVEMBER OR DECEMBER TO APPLY FOR A MORTGAGE AND JUST HOPE THAT A HOME THAT I LIKE IS ON THE MARKET?

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

Anonymous — Thu, 22 Aug 2013 21:10:03 GMT

Well the first question is do you already have a house you want to make a offer on? It took me 3 months of daily looking to find a house we saw no less then 50 houses. Second what type of loan are you looking at getting? Fha is faster then USDA.

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

StartingOver10 — Thu, 22 Aug 2013 23:19:16 GMT

Short answer: No, Oct is not too soon.

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

ShanetheMortgageMan — Fri, 23 Aug 2013 05:12:14 GMT

If you apply now then you'll either know you will be pre-approved when it comes time to make an offer on a home, or you'll find out there are items you need to work on in order to become pre-approved and you'll have the next few months to work on them.

It'd be a big bummer if you applied end of November to find out there are things you need to work on before you could get pre-approved... and then you are either extending your lease month-to-month at a higher payment, or having to sign a new 6-12 month lease, or temporarily having to find a new place to live.

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

cazz — Fri, 23 Aug 2013 10:56:34 GMT

Yes I have about 3 houses that i like right now and they were under contract but now they are active again so I dont want to lose them again. I'm looking at a fha loan and possible a fha 203k but i know that type of loan takes much more time and stress so im just looking at fha right now.

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

cazz — Fri, 23 Aug 2013 10:59:32 GMT

I've been working with a lender for a few months and shes told me everything that i needed to clean up in order to get preapproved which is how i found my way to myfico etc. so Ive been watching things on my credit pretty closely ever since i fixed everything but what other things can pop up in this mortgage process? Ive heard about crazy conditons that the UW come up with but is that what you're talking about or is there something else I should be worried about? lol

According to everyones answers I should go ahead and get my preapproval in October I'm guessing.

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

rckstrscott — Fri, 23 Aug 2013 15:23:44 GMT

@cazz wrote:
I've been working with a lender for a few months and shes told me everything that i needed to clean up in order to get preapproved which is how i found my way to myfico etc. so Ive been watching things on my credit pretty closely ever since i fixed everything but what other things can pop up in this mortgage process? Ive heard about crazy conditons that the UW come up with but is that what you're talking about or is there something else I should be worried about? lol

According to everyones answers I should go ahead and get my preapproval in October I'm guessing.

To give you perspective.. I started the preapproval process in late Feb, finally secured it in March -- we went crazy looking at house of a week and made an offer.. My close was smooth, no bumps at all, and I closed on May 24th -- so I would venture to say you SHOULD get moving on it by October... I wouldn't be concerned with it being too soon at all -- these things can be quite the time suck

-scott

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

cazz — Sun, 25 Aug 2013 21:14:58 GMT

Thank you for that info i think my only fear is that i will apply and close too early and then im stuck paying both my apartment and a new mortgage. Because basically i cant move out until January and so i dont want to apply too early and close in December and have to pay mortgage january 1st and rent january 1st. Ive heard where u can wait 1 month until you pay your first mortgage but i dont know how accurate that is. Also im doing the OHFA down payment assistance program and any additional down payment tht i may want to put down i wont have back until my tax return in mid january.

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

ShanetheMortgageMan — Tue, 27 Aug 2013 07:23:22 GMT

When you make your offer, you can always ask for a closing date in mid-January (not too many sellers would probably go for that until you get into Oct/Nov though).

When you close, your 1st mortgage payment is usually due the 1st of the month in the 2nd month after you close. So for example if you close on December 20th then your 1st payment will be due on February 1st. Sometimes if you close early in the month (within the first 5 days) it is possible for your lender to make your 1st payment due the 1st of the month in the month after you close, for example if you close on December 3rd then it's possible your lender can make your 1st payment due on January 1st. You have that as an option though, it is not required in that situation for your payment to be due January 1st, you can still have it be due February 1st.

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

cazz — Tue, 27 Aug 2013 14:04:35 GMT

Ok thank you thats the answer i was looking for. I will hold off on applying until mid- October that way i will have enough time to close by late december or January. My other issue is since im doing down payment assistance program in ohio ( OHFA) will i have to put any money down prior to closing? Like i stated previously Im trying to time everything right which i know is impossible in home buying but heres my timeline in what i hope to achieve

Mid-late October- apply for pre-approval for home priced between 110,000-145,000

November-start the down payment assistance program ( told it takes 30 days to be completed and processed)

December- hopefully ive chosen 1 house that i love because right now im torn between 3 and we can begin the closing process

January-I receive my tax refund in case i want to put additional down payment on home and i move out of my apartment because my lease is up

So since i wont have my extra money until january is it possible to close in december? Or does all money and downpayment etc. Due at closing?

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

ShanetheMortgageMan — Tue, 27 Aug 2013 15:40:12 GMT

Most sellers will not accept your offer unless you put up some earnest money, which is an initial amount you put down on the home to show that if everything goes right with the underwriting, inspection & appraisal process, that you are earnest in your intentions to purchase the home. In Ohio I've found $500-1,000 to be a normal amount of an earnest money deposit. That amount is credited towards your final down payment & closing costs, which will be due at the closing.

Re: LEASE IS UP JAN. 31ST IS OCTOBER TOO SOON TO APPLY???

cazz — Tue, 27 Aug 2013 15:54:35 GMT

Ok thanks i can put up the earnest money so thats fine but it looks like late october to early november would be my best bet simply because of my tax return coming in early january so thank you! And ill talk to my LO a bit more about what our plan should be