first time home buyer.

[Anonymous]

Hey Ive been browseing for awhile and figured is join with a few questions. It seems that I'm position to buy a house this summer as long as everything keeps going good and what not. Few months ago I went to get preapproved. Just to see how much I could get. Credit score was a 669 . She gave me an fha with 100,000 loan and 4.125 interest rate. I know its only good for 90 days. First question I have a truck payment of 455 a month and about 17 more payments left on it. I've been told once I get close to paying that off my loan amount will increase? Second question for a first time home buyer is it better off to go to a smaller bank or like a wells fargo place?the preapproval was from 5/3. Does anybody have any other places I should check out I'm in ohio. If you can answer any of this questions thank u for you're help

[StartingOver10]

It's hard to tell how your vehicle loan is impacting your potential new house loan without knowing your actual gross income. Did your loan officer go over all of your ratios for the loan (housing ratio and total debt ratio)? If she told you your loan amount would increase, I suspect that your total debt ratio is so large that it is affecting how much you can qualify for in a new home payment.  Can you pay your car loan off early? It would help you in the long run.

As to going to Wells Fargo, or similar "big box bank" you may do better with a mortgage banker. First the loan officers are generally more experienced and will work with you to make sure you understand the process. Lately the large banks are replacing the experienced loan officers with just an inexpensive application takers - not a good way to get your first mortgage. Of course, YMMV.

[Anonymous]

Well she really didn't explain much and at the time I didnt know much about how home loans work either but she did base it off 2800 a month income. And what u said is true its like she tried to get me in and out as fast as she could.. so I'm thinking my next go around I'm going to go to an actually home loan mortgage office since I've noticed a few in the area. Thanks for the advice trying to. Get all I can now so I can be ready by the end of summer

[Anonymous]

My debt to income ratio is below 20%

[boomhower]

A good loan officer is vital to the process.  I'm in the home stretch of my first mortgage.  I went with Wells Fargo due to the numerous folks here and on other boards that had used them for FHA.  But I didn't go with my local branch.  My realtor had experience with a lady a few hours away and gave me her number.  I have done everything over email and fax and it's been a pretty painless process.  She was quick to answer my email and return calls.  She even went over the loan app and other docs line by line on a Saturday from her home.  To say she's been wonderful would be an understatement.  Wells Fargo gets it's share of hate but unless things fall apart at the very last minute my process has been very very pleasant.

If your DTI is close the truck payment could certainly make a difference.  I want to say it's when you have nine months left they stop counting it against DTI but not 100% sure.

[Anonymous]

Yea I've heard good and bad things about about wells. I guess I just really need to pick someone and go sit down and talk to them. I feel 53 just really didn't care. And I think its ten payments and they don't count it. Good luck to and you're process.

[StartingOver10]

The number of remaining payments on your auto loan varies from lender to lender and the geographic area in which you live!

In my area of S Fl, it used to be less than 10 months worth of payments remaining on your vehicle and the loan was not counted. Then a couple of years ago it changed to less than 6 months and now they include the payment even if you have only one remaining payment!

I said geographic area above, but what is probably more accurate is whether your area is considered a "still declining market" like we are here in S Fl or if your market is stable. You have to ask the particular lender that is issuing the loan.