My First Home - Mission Accomplished

CaptainConcorde — Thu, 06 Apr 2017 03:09:01 GMT

I'd like to share my recent home buying experience. I moved from Arizona to South Carolina last winter for a new job and the rents here are crazy. I'm paying over $1300 a month so I decided if the job went well and I liked the area I'd try to buy.

My FICO scores are 668 Equifax, 682 TU and 691 Experian. I have around $32k in credit card debt, a car loan, college loans (in deferment) and a personal loan secured by a CD. My income is around $85k which put me around 48% debt to income. High but doable. I applied for a VA mortgage with Veterans United back in late February when I started house hunting. I picked out a semi-custom new construction house ($195,000) and started the process.

1. Preapproval/Prequalification:

I did these before I even started looking. Prequalifiication was easy just call in with some basic information like income, debts, etc and they give you a letter within an hour (it was easy). Of course it's too easy and it's all based on what you tell them so there is plenty of room for error. I made a list prior to starting and was as honest as i could be. I was prequalified at $240k which was above the new home prices in my area of South Carolina. I jumped almost immediately to the preapproval stage. I sent in three years of tax returns and W-2's, two months of payroll and bank statements and filled out the application. I was as complete as I could be and sent everything back within two days. I was preapproved after about three days for $230k.

2. Picking a House and the Work Begins:

I picked out a house fairly quickly (knew what I wanted) and started the process. I put down a deposit and the loan officer (who was fantastic) started the process. I went about a week then received a notice I was going to underwriting after receiving some stuff from the seller. A home inspection went well but the home appraisal almost ruined my dream as it came in about $3000 under the asking price (which was my offer). The builder worked with me and offered to cover that amount in closing costs as my available down payment was fairly fixed. The deal was saved.

3. The Conditions:

A week later I received a list of four "conditions". This was the part I dreaded. I've read the horror stories online and was scared to death. They wanted four things all super-easy (I completed them in a day). A newly signed tax form request, a signed SC lawyer/realtor form, an explanation letter for a recent credit pull (it was another mortgage company) and an explanation for a PO box that appeared on my credit report (no problem). The big thing was I got this all back within a day so there was literally no delay.

4. Almost There:

About ten days went by and I heard back I was "CLEAR TO CLOSE". This was great news and I was in a bit of disbelief yet I made it. I then waited about ten days until yesterday when the closing day arrived. After ninety minutes at the lawyers office signing my life away I was handed a set of keys and am for the first time in my life a homeowner.

5. Recap:

The entire process took from the last week of February to around March 25th or about four weeks. I got everything into the loan officer as soon as requested which he said later was a huge benefit. The entire process was basically painless (I'm almost waiting to wake up thinking it's a dream). I think going in with a positive attitude and a focus to handle all requests with immediate action helps. I heard the underwriters really appreciate not having to sit around waiting for customers to turn in paperwork. If you want the house it has to be the number one priority.

Despite my credit scores I scored a 3.875% interest rate for 30 years. With taxes and insurance it comes to $1124 a month or roughly $315 LESS than I'm paying for rent currently. Being a VA loan there is no mortgage insurance which saves me about $130 a month. Add in the fact I'm building equity and all is good as far as I'm concerned. I'm glad I didn't give up the dream. I'm in my early 50's and waited forever for this. It was worth the work to rebuild my credit after a BK fourteen years ago. While I'll have to work until 65 to pay the house off (early) I never planned to retire early anyway. At least now I have something I'm working for.

ErikArizona

Re: My First Home - Mission Accomplished

StartingOver10 — Thu, 06 Apr 2017 11:30:03 GMT

Congratulations! What a great journey you have had over the last 6 weeks

Re: My First Home - Mission Accomplished

Anonymous — Thu, 06 Apr 2017 16:33:38 GMT

Congratulations

Re: My First Home - Mission Accomplished

Sylvrbak — Thu, 06 Apr 2017 18:22:47 GMT

Way to go, good for you. Congrats and enjoy that new home!

Re: My First Home - Mission Accomplished

Anonymous — Fri, 07 Apr 2017 18:10:07 GMT

That is awesome congrats!!!

Re: My First Home - Mission Accomplished

Vegas4Play — Mon, 10 Apr 2017 18:15:31 GMT

Congrats on urban new home, I'm sure it will be well worth it to stop renting.

Re: My First Home - Mission Accomplished

Anonymous — Wed, 12 Apr 2017 17:30:19 GMT

Congrats! Great summary of events

Re: My First Home - Mission Accomplished

MauiMan85297 — Wed, 12 Apr 2017 18:05:46 GMT

Congrats on the new home! We closed on new in Dec in E. Mesa

Re: My First Home - Mission Accomplished

Calidreaming — Wed, 12 Apr 2017 18:49:45 GMT

Congratulations!!!

Re: My First Home - Mission Accomplished

Anonymous — Wed, 12 Apr 2017 19:48:51 GMT

You make it sound so easy, very impressive...Congrats on your new home

Re: My First Home - Mission Accomplished

DallasLoanGuy — Wed, 12 Apr 2017 20:37:51 GMT

congrats

Re: My First Home - Mission Accomplished

Anonymous — Wed, 12 Apr 2017 22:41:12 GMT

Congratulations!!!

Re: My First Home - Mission Accomplished

Anonymous — Thu, 13 Apr 2017 03:17:09 GMT

Congratulations!

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