Hello! I am a 25 year old single female thinking about buying a home. I have been employed with the same company since April 2008. My TU score is 634 and my EQ score is 666 (eek!!). I'm feeling the butterflies in my tummy every time I think about houses. I've been pre-approved through Wells Fargo for $55,000, which is the full amount I requested. My area has some nice starter homes that are in foreclosure and cheap. Based on a 30-year fixed rate, assuming a 7% interest rate (I like to play it safe!), I would be paying 90.00 less on my mortgage than I am currently paying in rent. Figuring in taxes and insurance, the figure looks to be about equal to what I am paying now. In that regard, buying obviously makes sense. My concern is that I am all on my own, my employer has been stirring things up quite a bit at work, and I am definitely going to have to scrounge for a $3,000.00 down payment and all of the other fees that come with closing on a house. I have pretty much nothing in savings. I think between my parents and grandmothers I would be able to raise the money (my family rocks), but it still is making me uneasy. I will be graduating from college in Dec. 2011 (hopefully), but the projected graduation date is Jan. 2013, so my loans currently show they will be deferred until June 2013. I'm an education major, and when I graduate and find a job, I'm looking at a $10,000/year pay raise. My parents are being really supportive of the idea of buying, but I'm so freaking' nervous! All of my numbers are listed below:
Income: $25,000/year
Credit Card debt: $623.75
Total Credit: $2980.00, available $2356.25
Utilization: 20% (I'm upping payments to bring it down to 9% within the next 3 months)
Current Rent: $440.00
Current Monthly Payments: $65.00 (minimum)
Student Loans: $13,000 (deferred until June 2012 realistically, currently shows June 2013)
No other loans or debt
Projected Mortgage Payment: $367.00 (at very high 7% interest rate)
TU: 634
EQ: 666
Does it make more sense to hold off on this whole homebuying thing, or if I can scrounge up the down payment money, go for it?
Thanks in advance!
