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Need Advice - First Home Purchase

Need Advice - First Home Purchase

Hey guys hope you can be of help! A friend told me to check this forum out, as it is the best place to go for real advice.

 

Give you guys a quick background:

I am 21 years old. 

Income on W2's past two years: $58,000-$62,000

Debt: 0 I like to do everything cash. 

Cash on Hand 55K (In Chase and Wells Fargo been banking with them for 6+ years, been working since I was 15 in HS) Also I only want to use 30k Down and use the 25k as emergency money for repairs, or I can use 12k to pay off the leases I have, and save the rest.

Heard conventional loans start at 3%-20% but I can go the FHA route and put more down, but down to do whatever is best!

Inquiries: TU: 8 Equifax: 5 Experian: I don’t know.

Credit Age: 1.8 years

Credit Available: 15,898 

Discover IT: $1,300

BestBuy: $6,000

Capital One: $5,500

SyncB Lowes: $1050 SyncB Gap: $1024 SyncB Old Navy: $1024

Payment History: 100% on time

Cars: Both on Leases the total owed is $11,921 (Both Honda’s and under same financed bank America Honda Finance)

First Lease: Currently at $7853/$11,780 Fairly new opened in March 2017 and it is joint. My brother has this car. (He’s a deusche got it under my credit)

Payment: $327

Second Lease: Currently at $4068/$8137 Started in October 2016

Payment: $226 My sister has this car, she’s cool I did it for her. 

 

I heard on house loans that if I can prove she is making payments on car same with my brother they will not factor it into my debt? Also should I just pay this off with my cash I have on hand, not all the way off as my friend told me the mix of loans will be good, but at least bring this to $1,000?

 

Also keep in mind the scores I provide below are not considering in 1% Credit Utilization. As on the 21st, I paid my $1300 debt on my best buy card down to $158 so that it reports 1%. Next month I will know my true fico scores.

 

Scores from Credit Karma: TU: 704, Equifax: 711 Experian: I don’t know!

 

I will be pulling my fico scores next month when my cards report. As my friend is going to call the banks and ask for credit limit increases without inquiries, so that I can get closer to 30k in credit. As recently I never cared about credit, I only got the cards above because people in the store would ask me do you want to apply for a card. Discover and Capital One my older brother opened for me without my consent. I have since called them and they are making me the individual owner of those accounts. Will see changes on this next month as well. 

 

Up until December I have never realized how important credit was, but I am glad for those store associates and my brother even though I wanted to punch him when he told me he has been using my social. 

 

I really want to do the loan and start my loan applications by April/May. My owner said that since I have 2 years of work history and scores close to 700 I can definitely do it. I don’t care about cars, I am tired of renting, and want to get a home. My dad who has excellent credit and makes 60k as well, said I can use him as a co-borrower to get more buying power, I know and hope I can possibly get approved on my own, but I don’t mind the extra buying power that comes with 60k more income on loan application.

 

Been doing my homework, I can probably get a loan around 600-700k using my dad, half that by myself. I do not want to buy a dream home now. I want to do what my owner did either get a small house and continue to save and wait until the market comes down, or do the co-app with my dad and get a Duplex. House for me in the front or back, and rent it out to my brother and his wife in the back. 

 

Please assist me with the questions above, and let me know how much I can realistically get using both scenario’s above and like what are my next steps, or what must I do, I really want to get a home ASAP. I been saving 3k a month for the past couple of years, and if I include my rent into those savings, that mean I can afford $1,000-$4500 a month.

 

I do not want to buy a fancy car, my hand civic is used, and I own it. I have no liabilities, and my job is secure. I should be in the 700’s next month, so please given my background let me know your honest opinions. But please do not tell me I should not buy a home! My brother is 31 and renting, my next brother 25 is renting, I want a place to finally call home, or a duplex that I rent out and live in until I can get a second home.

 

12 REPLIES
Established Member

Re: Need Advice - First Home Purchase

Hi There. #1 - Credit Karma is not giving you actual FICO scores, so pull those and you will actually know your score.

#2 - just go to a loan officer. They will tell you what you need to do. They do not have to pull your credit to start discussing your possible options. Make an appointment with a good loan officer near you and go. I did that and it was the best way to get straight up information. Every loan office might handle things a bit differently. They can also direct you to the best possible loan. 

12/4/17 Start: TU 585, EQ 548, EX 545
2/5/18 : TU 692, EQ 669, EX 661
Goal: 850 on all
Message 2 of 13
Valued Contributor

Re: Need Advice - First Home Purchase

Since you have been banking with both Chase and Wells Fargo, why not go in and get advice from either one of them. And like the other poster said, do not use CKs scores — they’re not FICO scores.


EX 792, TU 809, EQ 805
|| NFCU CashRewards $25K || AmX $15K || Macy's $15K || Discover IT $7.5K || NFCU Platinum $7.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 3 of 13

Re: Need Advice - First Home Purchase

 

 


My scores just updated, still the $1300 or so payment has not reported. The link will direct you to the album that shows all my credit report/scores from here.

Fico Score 4 Mortgage Scores: Equifax: 729 Transunion: 721 Experian: 713
Fico Score 8: Equifax: 771 Transunion: 749 Experian: 754

http://s1173.photobucket.com/user/ReaLiLJ/library/Credit%20Scores?sort=3&page=1

Also found out some things are not reporting on my accounts. (Friend is helping me to get that straightened out) 
No negatives on my reports. 
Looking for a house in California. 
Cities: Carson, La Puente, Lomita, Baldwin Park, Fullerton, El Monte, Valley Areas , and Los Angeles. 
Still looking for either a small house, or duplex depending on buying power. 

Please others chime in. 

 

Message 4 of 13

Re: Need Advice - First Home Purchase

Scores are posted in the post below. 

I want to make sure to not get taken advantage, is there a place you recommend to speak with a loan officer?

Message 5 of 13

Re: Need Advice - First Home Purchase

I was told to start on zillow and try to get private investor financing over bank financing. As banks will charge higher! Is this true? Also what are the chances of getting a loan with them?

Message 6 of 13
New Contributor

Re: Need Advice - First Home Purchase

As indicated above by other contributors. It never hurts too go to your bank and speak with a Mortgage Specialist. Ask as many question as possible, they will  be more than willing to talk with you. You are a potential customer for a mortgage. No one on this board will point you in the wrong direction. Ultimately, in the end it will be your choice on which lender you will use. Are you building or purchasing a existing home?

Starting Score: EQ612, TU644, EX622 4-22-17
Current Score: EQ720, TU728, EX705 02-18-18
Goal Score: 750

Take the myFICO Fitness Challenge

Message 7 of 13

Re: Need Advice - First Home Purchase

@IQn2D Yeah and if they ask to pull my scores right now but I won't be closing until possibly april/may, will that be okay to take the hit? And when I talk to these lenders, and get "a letter" like this one guy said who I have been talking to SR Broker, do I let these lenders/brokers just pull my credit? When I think of credit pulls I think of my brother going down to the dealership and having them pull his credit like 5-6 times to find a car. I don't want to be a victim of that, especially since my inquiries are at like 5-8 already. Can you chime in on that scenario? Like why can't they use my Fico 3b scores I pulled a day or two ago?

There is so many people:
Lenders, brokers, banks, etc So many people inboxing me saying your pre-approved! Come in and apply! All my life I stayed away from stuff like that, it just all seems so weird, and scary. Please help ;\

Message 8 of 13
New Contributor

Re: Need Advice - First Home Purchase

Sorry to just reply to your message. I had my credit pulled in August for my pre-approval letter through my builders prefered lender. This gave me an idea of my buying power reguardless if I went with them or another lender. If you get multiple pulls all for a mortgage (let say within two weeks) it will only count as one on your credit report. The worst case is you will only need to explain the pull when your file goes to underwriting. The pull will not drop your score that much. Maybe a point or two. However, if you don't want to take the chance then wait until you are truly ready. However, you will always need to know what you qualify for before you go an start looking.  

Starting Score: EQ612, TU644, EX622 4-22-17
Current Score: EQ720, TU728, EX705 02-18-18
Goal Score: 750

Take the myFICO Fitness Challenge

Message 9 of 13
Established Contributor

Re: Need Advice - First Home Purchase

No!


I was told to start on zillow and try to get private investor financing over bank financing. As banks will charge higher! Is this true? Also what are the chances of getting a loan with them?
Message 10 of 13