cancel
Showing results for 
Search instead for 
Did you mean: 

First Time Buyer Concerns

Highlighted
New Contributor

First Time Buyer Concerns

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?


Starting: MID 500's
Current: TU98 662 TU04 668 EQ 641 EX FAKO 620
Goal Score: 720+ on all 3 reporting


Take the FICO Fitness Challenge
Message 1 of 8
7 REPLIES 7
Highlighted
Community Leader
Super Contributor

Re: First Time Buyer Concerns

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

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 2 of 8
Highlighted
New Contributor

Re: First Time Buyer Concerns

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!

Starting: MID 500's
Current: TU98 662 TU04 668 EQ 641 EX FAKO 620
Goal Score: 720+ on all 3 reporting


Take the FICO Fitness Challenge
Message 3 of 8
Highlighted
Community Leader
Super Contributor

Re: First Time Buyer Concerns

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

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 4 of 8
Highlighted
New Contributor

Re: First Time Buyer Concerns

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!


Starting: MID 500's
Current: TU98 662 TU04 668 EQ 641 EX FAKO 620
Goal Score: 720+ on all 3 reporting


Take the FICO Fitness Challenge
Message 5 of 8
Highlighted
Member

Re: First Time Buyer Concerns

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.

Message 6 of 8
Highlighted
Senior Contributor

Re: First Time Buyer Concerns

Hi Shane - I was told that you couldn't finance closing costs in an FHA.  But now that I passed credit score requirements (Smiley Happy) 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

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 7 of 8
Highlighted
Community Leader
Super Contributor

Re: First Time Buyer Concerns

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.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.