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Purchasing first home

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Regular Contributor

Purchasing first home

Greetings, I've been using this forum for years when I first started my credit journey (at 19 years old I believe) and it's because of this forum I was able to build a strong credit profile over the past few years and now it's time to reap another benefit of being a good boy haha.

 

I am looking to begin the process of purchasing my first home (realistic purchase date sometime in 2021).

 

Demographics (2019)

  • 26 years old, an income of 70-78K/year...will add on a second job in the incoming months which will bring in another 10-15K/year.
  • Current loans; student $850/month (due is $612/month), car loan $300/month (due is $134/month); no others
  • Credit util 1% (paying off the remainder of $1,300 end of this month)
  • <1 year in current position
  • Fico 8: AAoA 3 years 3 months; TU 797, EX 805, EQ unknown (assuming its 780+); 2 inquires on TU and EX

Potential House

  • Philadelphia Suburbs
  • 2-3 beds, 2 baths, single-family home (+ back yard, +++ garage)
  • Price range 250-350K
  • 1 year worth of saving down payment (6-12K) beginning in 2020 once I finish traveling as a hobby this year

I have no idea where to start. I've read the basics of FHA vs Conventional....but just like when I was researching how to purchase my first car, there was too much information out there. So I'm asking for your cut and dry to the point suggestions. 

 

Thank you

Garden Until Jan 2021


Total Credit Line: 135K Inquires: TU 3 | EX 3 | EQ 2
Starting Score: TU 690 | EX 694 | EQ 694 [01/20/12]
Current Score: TU 797 Fico 8 | EX 805 Fico 8 | EQ 778 Fico 8 [4/26/19]
Goal Score: 790 across all 3


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Message 1 of 7
6 REPLIES 6
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Valued Contributor

Re: Purchasing first home

Congratulations! A good place to start is to sit down with an experienced Lender. A Credit Union is an excellent choice and they usually offer 1st Time Buyers Classes.
Message 2 of 7
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Member

Re: Purchasing first home

Wow, look at you! So responsible and so young! You should be very proud. Just wanted to say Congratulations! 


Message 3 of 7
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New Contributor

Re: Purchasing first home

With your credit score, income and DTI, research conventional loans.

Message 4 of 7
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Regular Contributor

Re: Purchasing first home

Thank you, everyone, for the kind compliment! I truly appreciate it.

Should I seek out a realtor so soon? I know Chase and Penfed offer assistance with the whole process but I'm very protective of my credit report so I'm not flirting with seeking pre-qual for a mortgage as yet. 

 

Would they even give me the time of day if I am so far out from pulling the trigger?

Garden Until Jan 2021


Total Credit Line: 135K Inquires: TU 3 | EX 3 | EQ 2
Starting Score: TU 690 | EX 694 | EQ 694 [01/20/12]
Current Score: TU 797 Fico 8 | EX 805 Fico 8 | EQ 778 Fico 8 [4/26/19]
Goal Score: 790 across all 3


Take the myFICO Fitness Challenge
Message 5 of 7
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New Contributor

Re: Purchasing first home


@notloso wrote:

Thank you, everyone, for the kind compliment! I truly appreciate it.

Should I seek out a realtor so soon? I know Chase and Penfed offer assistance with the whole process but I'm very protective of my credit report so I'm not flirting with seeking pre-qual for a mortgage as yet. 

 

Would they even give me the time of day if I am so far out from pulling the trigger?


Personally, I would NOT apply for pre-approval until you are ready to pull the trigger. What you should do now is call them and begin asking all of your questions now before you apply. You want to have as much information as possible before you get into the actual process. 

 

Don't feel bad if you call multiple times. If they want your business, they will provide the info.

Message 6 of 7
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Community Leader
Super Contributor

Re: Purchasing first home

Hi OP

 

Honestly, since 2021 is your timeline, it is extremely too early right now.

 

So, in the meantime, keep your scores high like you’re doing.

Make sure nothing negative happens to your credit history 12 months prior to applying for a mortgage.

Continue to make all payments on time, keep UT very low, and keep inquiries to a minimum.

At this moment in time, taking into consideration your DPs, conventional may be the best option if you have the down payment.

The reason it’s difficult to provide info now is because a million and one things can happen between now and 2021. You could get married, lose your job, get a humongous raise, hit the lottery, start your own business, have a job transfer, etc.

 

I say keep on the track you’re on because you’re doing well and come back with questions 6 months out.


DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

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