Sacred to death, nervous, excited, and what else?

[StartinOver]

Well, I sort of jumped the gun when I saw  a house I couldn't pass up. Instead of waiting a couple more months when my last baddie would fall off along with old inquiries, and I would be on my new job at least 6 months, well, I decided to approach a lender for a credit pull so that I could get a pre-qual letter to submit an offer.

I am way to busy on my new job, in school and otherwise, to be doing this! I should be studying all night tonight for a test tomorrow. But I was checking email from the lender and then came to the boards and I just can't seem to buckle down and get back to work. (Pre-Algebra, do you blame me?)

I find it hard to believe that I might actually get somewhere with this, since I don't have all the paperwork needed immediately so she can finish so I can get the offer in before too late. But I am excited to think I am finally in the process I have heard so many speak of. I am hoping it doesn't turn out as hard as many say it is.

I am putting an offer on a HomeSteps home that was listed on Friday. My realtor said something about 5 days before they will take the offer and then they sit and collect for a time. Can anyone tell me anything about what this is about? Since I won't be the first offer to be considered, but will be in a pool of offers (when do they stop collecting and start considering), should I offer a little above the asking price so I will stand out? I don't want things like being laid off from previous jobs and short time on new job to hold me back. I know I am in a iffy situation, but they can overlook it if they decide to because of the supposed stability of my new union job and my 'not-so-shabby" credit.

Can someone please comment on the HomeSteps procedure?

[ShanetheMortgageMan]

Not a lot of past discussion on HomeSteps, here is one.

http://ficoforums.myfico.com/t5/Mortgage-Loans/Freddie-Mac-s-Home-Steps-Smart-Buy-Coupon-Great-deal-...

As far as your questions, Freddie Mac is just the seller in this situation, they are only reviewing your offer and not your situation as it pertains to a mortgage approval.  Your real estate agent will hopefully be able to get a feel from the listing agent, will find out around where other offers are coming in at, and be able to structure your offer so it is the best one at the time it was made.

[Anonymous]

When you spoke to the loan officer did you get any sort of pre-approval?  They are not going to car about your circumstances (the seller) but may look down on any offers that are not pre-approved, etc.  Even more so if they are not strong offers.  Often times a cash buyer will come in lower but will win because they know that the deal will be quick and painless, often times saving them a decent chunck of money in the process due to the speed and the deal and less contingencies/expenses.

[mauve]

I am dealing with Freddie Mac.

I saw a house when it had been on the market for less than a week.  I saw it on a Sunday.  On Monday, my agent told the LA that I was putting an offer together.   Hours later, he told me that they had an offer in.  Tuesday, when I got everything I needed to to my agent, there was a third offer in.  At that point, they went to "highest and best" by Wednesday at 3pm.  My real estate agent had told me that when there are at least 2 offers, they go to "highest and best", so my initial offer was my highest and best - I went 5k over list.  He also said he expected to hear "quickly - probably Friday".  I got the call on Thursday that they had accepted my offer - well, they technically countered.  They added a $50/day penalty for closing delays on my part and they changed my "60 day" closing to a date that was 60 days away.  Don't forget to ask for the 2 year home warranty in your offer, too. 

[StartinOver]

I did notice HomeSteps has a 2 year warranty, and was going to mention it to my realtor, though I think she probably already knows. I just texted her and asked if I should offer more, and she said no, and so far no offers. Might be because of the snow and semi bad weather, let it continue!

Yes, I must do a pre-qual, which is why I only got 3.5 hours sleep last night. I just have the letter of explaination to write and waiting for my old job to email me my 2009 W2. They have my request and it only takes a few minutes to download and email, if they would only put a priority on it.

So, here is where I stand, and I am hoping a couple of you can give me an opinion while I am in class tonight, so I know what to do tomorrow. Keep in mind that Friday is my payday and my lender needs to do a rapid rescore and I need to hurry and get my offer in.

I have $4400 available credit (yeah I know that is low compared to what I used to have a few years back). On my Visa, which has $1000 limit, I paid it down to $18, but I think I have something else coming through tomorrow, which might make it around $150 balance. That would be 15% on one card and nothing on the rest. That makes about 3 1/2 % utilization over all, I think.

What will give me the best score raise? Should I wait for Friday to pay it lower, and what should I leave my balance to be, Is 3 1/2 % sufficient, or are they seeing it as 15% on a card?  Exactly what have you found or heard is the ideal situation given my circumstances?  I need to get my middle score over 700, and if over 720 that would be great.  I have just paid off about $1600 or so. Rescore ought to help me over the 700 mark, I would think. Should I wait for Friday and another $100 payoff before rescore?

TIA!

[mauve]

I don't think you need to be concerned about your score right this second, as long as they're over 640 or whatever.  What kind of loan are you looking at?  FHA or conventional?

Make sure your realtor puts the home warranty in the offer or they won't do it.  Also, I wouldn't go to my highest and best offer if there isn't another offer - if another one comes through (or another two), then worry about that. 

[StartinOver]

I have nothing for a down payment and must have over 700 to get the down payment financed. I think that 721 is the next tier that might benefit me. I hope to get Idaho Housing & Finance (ihfa.org) which is under 5% and supplies a second on the down payment. Or we might go FHA, not yet sure.

[StartinOver]

My loan officer was too slow in finishing my pre-approval.  8 days later she was not finished and they finally got another offer. It was a chance of a lifetime that I just missed. One house is the same as another to some people, but not me. I go by a point system, I add up all the pros and cons: location, age, price, size, character, repairs needed, taxes, value, etc.  This one (1958 brick) had everything except the character I wanted (vintage, around the teens or 20's). It had room for all my dreams and hopes (guest house in back, garden in back, big fenced yard, garage, newer and needed no repairs, decent area, and best of all - a low price, cheaper than renting.

I am so heartbroken, and they think it is easy to just find another house...

[mauve]

I went through that - we came to an impasse on the first house I offered on.  I didn't think I'd find anything at all, but I came up with a list of 17 houses that I *might* want to see, narrowed it to 6 priorities, and when I saw them I liked 3 of those.   I saw one more I liked that week, and while I was deciding which one I really wanted to put an offer in on, a better house came on the market.  Better than any of the dozens of houses I'd seen.  The house I'd come to an impasse on was a 1902 folk victorian...this is a "1900" italianate in a better neighborhood with a better layout, more usable space, better yard, no shared driveway, 2 baths instead of 1.5 (and that .5 was a weird weird bathroom), etc.  That deal may fall through, you may find a better house, it will work out in some way.

[StartinOver]

Oh, thank God, I get another chance!  The offer was not full price. My realtor got my loan officer to approve us submitting the offer while we wait on the CRA to fix something.  The listing agent accepted my offer and told the other people there was another offer so they upped their offer. Of course we don't know what their offer was, but I got the impression I did not need to worry any about my full price offer. My realtor requested a response to my offer by Friday.

I am holding my breath, lol. Actually, I feel more at peace than in a long time. Things are happening, and fitting into place and it is amazing me how they say: give me $1000, then my student loan disbursement shows up at the same time. Wow, this is so weird. Only thing not happening is my credit report. I paid off over $1000 and instead of them reporting zero balance they report a dispute. That my be there because the CRA is working on it. Another $700 balance became zero, but 2 scores remained the same and 1 lowered instead of raised. How can utilization go from 50% to 25% and never gain any points? Is it because the dispute happened at the same time? I hope they don't pull my score too early!