Looking to get started now. I think?

Anonymous · ‎09-13-2021

Hello all,

I could use some advice please. I have been working on my credit for a while and I feel confident on where I stand score wise. However, I am anxious about everything else and I have some questions.

1. my lease expires on 12/15/21 and I'm hoping to be able to move in by then. Extending wont be the end of the world, but it's not what I want. Is this a reasonable time frame to expect? I haven't done anything more than look at listings to get an idea of what I want, the area I want, and see what the amount I want to spend can get me.

2. I plan to app with NFCU homebuyers choice, hoping for a 0% down loan. Any pointers there? Is it really hard to get 0% down? Are there other lenders, maybe with better rates that offer 0% down?

3. I plan to check my own scores this week, I know there is a link here somewhere that will show me where to get them. I know they use the middle score. I can see that my scores are not updated across the board yet. Using diff app like Discover, and the NFCU app, I see one says its current as of 09/03/21 and the other looks like it just updated 08/20/21. Question is, do all versions update at the same time? If I purchase the three scores this week, will they be the most recent? Or do I wait until 09/20/221 for the most up to date? I'm not quite sure that is clear.

4. what does the application process look like? I apply online, where I'm told if I'm pre-approved? Will this tell me how much they are willing to lend? If it's not what I want can I shop around and go back to this? Is there a certain amount of time I have to find a house? Do I need all of the closing costs sitting in my checking account the minute I apply?

5. NFCU has realtors they like to work with. Do I need to pick the realtor, then look at the houses that company has to offer?? That may sound crazy, but will I have access to anything on the market? She told me that I need to be looking now, and starting the application process no later than mid Oct or risk not getting things done before my mid Dec goal. Does that sound about right?

Thank you in advance. I'll probably have more questions, but this is where I am. A few weeks ahead of hitting the apply button.

sccredit · ‎09-13-2021

IMO you need to apply now so you can get any conditions out of the way.

Realtors all have access to MLS (or your local equivalent) where real estate for sale is listed. Find one you are comfortable with and is familiar with your local market.

iheartwings · ‎09-13-2021

Having just gone through the process - you need to go through preapproval now so that you know what conditions may be an issue for you.

The market remains hot, and not knowing where you are looking - 3 months might be enough time, and it might not be. It took me about two months and multiple offers before I got the house I ultimately purchased. Because I bought off-market, I gave the sellers a somewhat lengthy period of time before closing (like just over 2 months), so they could get own house purchase in order - they ended up moving in with their parents because they were outbid on multiple houses. So, I'd be wary of giving yourself a deadline (i.e., end of lease) because you don't want to have to buy a house out of desparation.

Depending on your lender, and the order of your own financial house, time to closing could be fast (4 weeks)...or slow (2+ months)...or something in between.

As for real estate agents, look for someone who is specifically a buyers' agent. Ask friends and family who they'd recommend. My agent worked really hard for me and represented my interests, and I will be eternally grateful for her work. She was also great at telling me when I was being silly, without making me feel silly.

iheartwings · ‎09-13-2021

@Anonymous wrote:
Hello all,
I could use some advice please. I have been working on my credit for a while and I feel confident on where I stand score wise. However, I am anxious about everything else and I have some questions.
..
3. I plan to check my own scores this week, I know there is a link here somewhere that will show me where to get them. I know they use the middle score. I can see that my scores are not updated across the board yet. Using diff app like Discover, and the NFCU app, I see one says its current as of 09/03/21 and the other looks like it just updated 08/20/21. Question is, do all versions update at the same time? If I purchase the three scores this week, will they be the most recent? Or do I wait until 09/20/221 for the most up to date? I'm not quite sure that is clear.

I forgot to answer this question in my previous response. Your reports are constantly updating. When you pull your CR and get your scores, these are a snapshot of your scores at that time. Typically, your credit card company will report your balances within a few days after the statement closing date, which results in updated scores. The scores you get via Discover and NFCU will only reflect a single pull on the same date each month (for example, I have Discover, and they pull my TU score on the 14th of each month).

If you are worried about scores, you'll want to apply when your score is maximized. You can search on what things you need to do to improve scoers. One of those things would be to ensure that your reports are reporting AZEO (search this in the forums). Also, remember whatever balances are reported on your reports will go into your DTI calculations, which is also determines how much you can borrow.

Anonymous · ‎09-14-2021

Thank you for the responce. While I'm not at AZEO, my balances are as follows. Discover is sitting at about 20% usage, and my NFCU is sitting at about 35%. I have the cash to pay off Discover now, and bring that down to zero. Is that a reason to wait before I apply? I believe Discover closes on the 23rd and updates on the 26th monthly. That isn't too far from now, and if it will make a difference, then I can plan for that. Or will paying it, then applying for the mortgage even before the 26th give them that zero and optimize my score immediately?

Anonymous · ‎09-14-2021

First, don't give yourself a deadline. If need be, go month to month. You DO NOT want to have your back against the wall while looking for a house. Most people will search online for a few days looking for the best price for a set of tires, but will be the most foolish buying the largest asset ever in their lives, a home. I just wish ignorant buyers would just take a single step back for a minute. In all reality, who really cares if interest rates go up .5% in the next year. What everyone should be caring about is paying 50-100k too much for a house. Just take your time. If you get outbid on a house, don't feel dispair, feel joy that another idiot buyer has removed themselves from the food chain. Paying higher month to month rates is well worth not paying some of the stupid prices that these clowns are. Don't give in on any contigencies also. Who in the hell waives an inspection clause? Idiots, that's who.

iheartwings · ‎09-15-2021

Your utlization on individual accounts are too high, so your score could be higher. (Individual util should be <30% and overall <9%) If your middle score is above 740, this may not be an issue for you, but if you're looking to have the best scores to get a better rate or if you are borderline-you should consider as a way to help your score. If your middle mortgage score is high enough without, then it might be too much squeeze for the juice, or however they say it.

I'd pay off the Discover to 0 and the NFCU to 8.99% or less before statements cut. Again, only if you really need the points to maximize your score.

Anonymous · ‎09-15-2021

Great advice, thank you. I set up to pay the discover to $0, and an extra payment to the NFCU card before the cycle date. Do you think this will make or break approval odds? I'm looking in the Virginia market. It doesn't seem crazy feeding frenzy, but I do want the best I can get. And the ultimate goal is to not spend anything cash, or as close to $0 as I can get. Which is why I'm going fit the homebuyers choice loan with $0 down.