topic Re: First Time Home-Buyer in Mortgage Loans

First Time Home-Buyer

Anonymous — Fri, 28 Aug 2020 01:10:46 GMT

First off hello all!

I was wondering what steps me and my wife should have lined up in pruchasing a home for the first time? Such as what % we should put down to narrow our payments under 800 or any other things I should have lined up before purchasing our home. We have our budget at roughly under 150k.

Any more information needed please ask.

Re: First Time Home-Buyer

sxa001 — Fri, 28 Aug 2020 03:02:23 GMT

Welcome to the forums, there are a lot of very knowledgable members here. We really don't have enough information to really provide you with the best advice. What is your overall profile, mortgage scores, current debts/obligations, your local property tax rates, are you looking to buy an HOA or not? All of these factors and more can impact your overall interest rates and your monthly payment.

Trying to get under $800 a month all-in on a $150,000 home is going to require a pretty substantial downpayment, unless you live some place with really low taxes and some place where homeowners insurance isn't too high.

Re: First Time Home-Buyer

NC_Mtg_Loaner — Fri, 28 Aug 2020 19:21:30 GMT

It's recommended that you reach out to a lender directly to discuss your goals and explain your qualifications but it doesn't cost anything to get pre-approved which is the first thing you really should do.

Assuming you are here in NC like I am, there are many affordable areas where $150k homes might wind up costing you about $900/month so your goal is pretty realistic.

A bank will want to see that you have stability of income, good credit history and sufficient assets for down payment and closing costs. Assets for reserves aren't always required but they're good to have just in case.......I mean, you should already be saving for retirement if you aren't already doing so and those funds qualify as reserves.

Meanwhile, there are many programs available for folks that don't require much of a down payment --USDA RD or VA have 0% down payment requirements should you qualify while FHA requires only 3.5% of the purchase price and FNMA or FHLMC have both 3% and 5% down payment loan products and programs for everyone.

Re: First Time Home-Buyer

Anonymous — Sat, 29 Aug 2020 23:00:36 GMT

Okay I can try and take time to give all of the availble info you need.

Overall Profile - What is this and how do I obtain this info?

Mortagage Scores - What is this and how do I obtain this info?

Current Debts/Obligations - 15,000 (290 per month) car payment and a few medical bills due to recent covid issues.

Local Property Taxes - I live in SC, but how would I go about finding that in my area?

HOA - Not really sure what that is I feel like ive heard it before.

Whenever you respond with how i can get these things i will gladly post the info. Thanks for your time trying to help me!

Re: First Time Home-Buyer

Anonymous — Sat, 29 Aug 2020 23:03:22 GMT

When I get pre approved will it tell me what my monthly mortgage would be? I can do that at say. My Wells fargo bank?

I live in the SC region if that helps you anymore. Im really just looking for the steps to really get into that 900 range with a 150k max. Ive even thought of land and a modular home that would be in the upper 100k and be more than suffient.

If you can point me in the direction of what info you need from me and how I can get it I can better give you specific info.

Re: First Time Home-Buyer

sxa001 — Sun, 30 Aug 2020 19:22:34 GMT

@Anonymous wrote:
Okay I can try and take time to give all of the availble info you need.

Overall Profile - What is this and how do I obtain this info?
Mortagage Scores - What is this and how do I obtain this info?
Current Debts/Obligations - 15,000 (290 per month) car payment and a few medical bills due to recent covid issues.
Local Property Taxes - I live in SC, but how would I go about finding that in my area?
HOA - Not really sure what that is I feel like ive heard it before.

Whenever you respond with how i can get these things i will gladly post the info. Thanks for your time trying to help me!

Sorry, sometimes those of us who spend far too much time here get a little jargon happy. When we are asking about profile we are referring to your credit profile and income if you are comfortable sharing. You did provide your current debts; however without knowing income we really tell you the impact of that small amount of debt will have. If you aren't comfortable sharing your income here, you could Google DTI calculators and plug in the numbers to show your debt-to-income ratio. I'll spare you the full overview of DTI but happy to answer any specific questions.

For Mortgage scores, what we mean is the different version of FICO scoring that are used by Mortgage Lenders. These are versions 2, 4, and 5. You can sign up on here on MyFico to one of the plans that let you see your full scores. The higher (740+, 760+) you will quality for the best mortgage rates, this will help you as you are trying to get that monthly payment down.

For property taxes, you can Google property tax calculators where you input your zip code, these will give you a percentage, I can't vouch for any particular one. If you know any real estate agents they can help too. I only brought that up because it is something to consider, here in Texas we have pretty high taxes, if my math is right on a $150,000 house in my current zip code I would have $3000 a year in taxes. When trying to keep your all in pament around $800 your tax rate will factor into those amounts.

HOA is a Home Owners Association, I would suggest reading up on HOAs to decide if you are okay with living in one. Maybe they aren't as common where you are but here they are prevelant. I refuse to buy in an HOA neighborhood personally, but if you do there are often dues. In some cases these dues are pretty cheap like $10 or $15 a month, in some cases, especially in neighborhoods with amenities or gated communities you could be looking at a $100 or more a month extra. I have strong opinions on this, and this thread isn't the one to discuss them but again consider that into the overall costs.

I hope this helps and wish you the best in your journey.

Re: First Time Home-Buyer

Anonymous — Mon, 31 Aug 2020 01:07:31 GMT

Okay I was only able to dig a little bit this evening but this is what I have for you so far.

Me and my Wife make around 60-70k a year. Our debts including the auto loan are around 25k. Thats including hospital bills that are against my credit.

Property Tax in my area is 0.417% and tops out at $626 annual PT.

As far as mortgage scores I was thinking of going to my bank and just talking with someone about this and trying to get a plan formed on how to prepare myself for purchasing a house in about 5 years or less. Would they be able to give me my mortgage scores?

I dont really want a HOA and neither does my wife.

Anymore info needed dont hesitate to ask.

Re: First Time Home-Buyer

dragontears — Mon, 31 Aug 2020 01:21:06 GMT

@Anonymous wrote:
Okay I was only able to dig a little bit this evening but this is what I have for you so far.

Me and my Wife make around 60-70k a year. Our debts including the auto loan are around 25k. Thats including hospital bills that are against my credit.

Property Tax in my area is 0.417% and tops out at $626 annual PT.

As far as mortgage scores I was thinking of going to my bank and just talking with someone about this and trying to get a plan formed on how to prepare myself for purchasing a house in about 5 years or less. Would they be able to give me my mortgage scores?

I dont really want a HOA and neither does my wife.

Anymore info needed dont hesitate to ask.

Total debt is not a number that is used to calculate DTI, need to know what the payments listed on your reports are

You can go to a bank and have them pull your scores and be surprised by the numbers or you can purchase your scores from this website so you know where you stand before talking to a lender, there are pros and cons to each approach