topic Re: Best place to shop for new mortgage, first time buyer? in Mortgage Loans

Best place to shop for new mortgage, first time buyer?

Anonymous — Sat, 19 May 2012 16:46:32 GMT

Hey guys,

I am a little lost here in the mortgage shopping business. We are looking to purchase the home we have been living in. My father financed the home for us due to my poor credit and now we are in the position to purchase it from him. My credit score isn't the greatest, Equifax Fico is 636. I have 20,000 in debt, 11k is an auto loan 7k is student loan and 2k is credit card. I have about 10k in savings. Nothing has been past due in 3 years and I did have 3 collections in 2009 totaling $350, all were medical bills and were due to arguments over what the insurance company was supposed to pay. My yearly gross is 70k and I am employed at a local business in the area full time for 3 years. My monthly payments are 369 on auto, 50 on credit card and 75 on student loan. We would like to finance about 85k and the estimated worth on the home is 110-120k. The actual cost of the home is 70k and we are looking to get 15k out of the purchsse to improve home. I don't know if this is possible but it is what we are considering at the moment. This is a single family home located at 35640. I think that is all the info requested but if you need more, please feel free to ask. I am considering our credit union as a place to purchase but would like to have several other places running the numbers as well in order to assure we are getting the best deal possible. Thanks in advance for any and all advice.

Best,

David

Re: Best place to shop for new mortgage, first time buyer?

Anonymous — Sat, 19 May 2012 22:18:42 GMT

@Anonymous wrote:
Hey guys,

I am a little lost here in the mortgage shopping business. We are looking to purchase the home we have been living in. My father financed the home for us due to my poor credit and now we are in the position to purchase it from him. My credit score isn't the greatest, Equifax Fico is 636. I have 20,000 in debt, 11k is an auto loan 7k is student loan and 2k is credit card. I have about 10k in savings. Nothing has been past due in 3 years and I did have 3 collections in 2009 totaling $350, all were medical bills and were due to arguments over what the insurance company was supposed to pay. My yearly gross is 70k and I am employed at a local business in the area full time for 3 years. My monthly payments are 369 on auto, 50 on credit card and 75 on student loan. We would like to finance about 85k and the estimated worth on the home is 110-120k. The actual cost of the home is 70k and we are looking to get 15k out of the purchsse to improve home. I don't know if this is possible but it is what we are considering at the moment. This is a single family home located at 35640. I think that is all the info requested but if you need more, please feel free to ask. I am considering our credit union as a place to purchase but would like to have several other places running the numbers as well in order to assure we are getting the best deal possible. Thanks in advance for any and all advice.

Best,
David

Credit Unions and Banks are options to apply. The downside when applying for a mortgage with a CU and or Bank is they usually only qualify you for their specific in-house mortgage. While the rates may be similar in comparison the qualifications will vary for approval.

IMO I would look around for a good Mortgage Broker since they can shop your best rates accourding to your peticular situation with debt owed, credit scores, etc etc...

As far as trying to put 15K in your pocket from mortgage loan wil be dependant on what the home appraises at and the type of loan applied for. The difference in loan amount and what you buy the house for would have to be paid to you at closing or whatever arrangement you have with your father.

Re: Best place to shop for new mortgage, first time buyer?

boomhower — Sun, 20 May 2012 00:18:29 GMT

It's a little more complicated than just getting a mortgage. Do you have paper trail of the payments you have been making or some agreement in writing that you were paying for the house and not just rent? If not there could be some tax implications of the "gifted" equity.

As for qualifying for the loan you should be fine. Either FHA or USDA is what is likely going to work for you.

Re: Best place to shop for new mortgage, first time buyer?

Booner72 — Sun, 20 May 2012 03:50:52 GMT

Another option is a Mortgage BANKER - they fund the loan then sell it. I used Academy Mortgage - they are a chain in most states. If you happen to be in Oregon, PM me and I can hook you up with the best loan officer at their company. She got us a loan when nobody else would touch us!