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when to try for a mortgage?

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Anonymous
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when to try for a mortgage?

I talked to a banker who told me that with a 720 or better i could get into a mortgage with no $ down on an 80/20 split.
 
I am far off, with a 583 EQ, 580 EX, unknown TU. But I have some items that I can dispute (ex's credit card, I am AU, double reporting - stuff like that).
 
I can probably come up with some money to put down (I am only 24 and in college, probably will not buy for another 3 years) but I do not know how much. And I am not sure how much my score will come up.
 
When should a first time home owner hopeful begin to look? I was thinking if I had about 5k and a mid score of 650 or better?
Of course my goal is a 720 and I plan to build my score over 3 years. I do not know if 720 is attainable from a 580 over a 3 year time span but who knows. i am knew to this stuff.
 
I figure if I could get in on a semi-decent 30yr fixed i could probably refi 5 years out.
Message 1 of 6
5 REPLIES 5
Tuscani
Moderator Emeritus

I would talk to another banker. There are many options ou...

I would talk to another banker. There are many options out there. You certainly do not need a 720 to get 0 down on a 80/20.
Message 2 of 6
Anonymous
Not applicable

Psst...why are you trying to buy a house right NOW, with...

Psst...why are you trying to buy a house right NOW, with the market declining?

Wait some more...build up your FICO...watch more foreclosed properties hit the market...
Message 3 of 6
Anonymous
Not applicable

I agree with Tuscani.  I was told by a lender that I only...

I agree with Tuscani.  I was told by a lender that I only needed a combined score of 675 to obtain an 80/20 loan.
Message 4 of 6
Anonymous
Not applicable

Actually, if you read the OP's post you would have seen t...

Actually, if you read the OP's post you would have seen that it will be 3 year before they are planning on purchasing a property.  Also, we don't know where the OP lives...there are some areas in the country where the real estate scenario isn't as bad as in others.
Message 5 of 6
Anonymous
Not applicable

Making a Decision to purchase a home

There's been a lot of hype regarding the current Real Estate market. When a person(s) are trying to decide whether it would be a good time to purchase a home, they should take all issues into consideration. When you continue renting you are paying someone else's mortgage. If I was in thinking about buying a home, I would consider several things:
(1) Review my credit report & see what I can possibly do to improve it
(2)Talk to a mortgage broker or mortgage banker who can arrange financing for my particular situation & complete a Loan Application. Nothing ventured, nothing gained.
(3)What would I need in terms of money for down payment & closing costs, what size loan I can qualify for, and what my estimated monthly payment would be?
(4)Look at the big picture: Am I ready for Home Ownership, am I prepared to make sacrifices, and have I considered all the variables regarding a home purchase:
Price-Equity Buildup-Appreciation-Tax Benefits-Overall Wealth Creation & How this purchase fits into my short & long-term investment goals. You will always come out ahead buying. The problem arises when homeowners get into the wrong type of loan or continually tap their equity which reduces any gains they may have realized.  Hope this was helpful. I am a Loan  Officer and I continually see these same patterns & thinking. There is no easy pill for anything that's wothwhile in life.
Message 6 of 6
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