First Time Buyer Concerns

[Anonymous]

Getting set to buy a home for the first time w/ my girlfriend....

I have scores of 650 TU/ 673 EQ/ 677 EX

We have been preapproved for 150k @ 4.5% based on our credit scores (both over 650) and salaries (70k combined)....

Do I have anything to worry about past this point in being fully approved once we put in an offer?

[ShanetheMortgageMan]

If your pre-approval process was similar to The mortgage pre-approval process then you shouldn't have an issue.

[Anonymous]

Shane-

After discussing with our lender and given the area we're looking in, I think we've decided on a Rural Development FHA loan...

Should there be any extra questions we should ask about for that type of loan or anything we can or should be concerned about?


Thanks!

[ShanetheMortgageMan]

Just be aware that the processing time is a bit longer since USDA needs to review the loan at the very end.

[Anonymous]

Shane-

Another question....we are trying to decide fair value on the home when we negotiate a price----

I was told by a USDA rep that I should be able to add and finance into my loan some extra money for flooring replacement, minor bathroom remodel, and new appliances.

Is this true?

My lender did not know the answer and I want to make sure as there are a few things I would like to do if I land the home....and this would obviously affect how much I use for my downpayment.

Thanks!

[LUCYCJ1]

The FHA loan that gives you money for  repairs and upgrades is a 203k loan. The house has to appraise at a certain value. You will need to take this into account when negotiating an offer on the house. The HUD website has the details on this loan. It does take a little longer to close on this type of loan.

[Booner72]

Hi Shane - I was told that you couldn't finance closing costs in an FHA.  But now that I passed credit score requirements () and automated underwriting, I was told that by paying 1/8th of a percent more, I can get 1% of the asking price off of the closing costs for money to move etc.  She said that it depends on that day's rate how much I would get?  I don't understand that part.  Also, why do you think she just now told me this?  Is this something that is pretty usual for FHA loans?

Thanks

[ShanetheMortgageMan]

USDA permits financing of certain repairs, but it's up to the lender to go along with it, most lenders don't like to because it means monitoring the process after closing and by that point they usually just want to sell the loan and be done with it - but you'll get some lenders who are fine with it.  YMMV.