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Old 07-14-2008, 07:44 AM
 
Location: Charlotte, NC
1,808 posts, read 5,861,116 times
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I will. Thanks!

Quote:
Originally Posted by QC Misfit View Post
ctribucher.... Google Dave Ramsey. He has some great ideas and advice. The Mrs and myself are actually shooting for a Fico score of 0 We are well on our way to getting this done.
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Old 07-14-2008, 08:08 AM
 
Location: State of Being
35,885 posts, read 67,046,730 times
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CTRIBUCHER: have you used some of the online calculators - to figure out such things as your debt to income ratio, etc? That can be very helpful in planning for that first loan!

Don't get discouraged - sounds like you are on track. And evidently - there are still loans out there that don't require 20% down! Frankly - I agree w/ others who are stating - how can most people EVER get a loan if lenders are all going to require 20% down. I have been concerned that this is how things are going, but from what I am reading . . . seems more likely that to keep business flowing . . . lenders are just not going to be able to require that much as a downpayment.
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Old 07-14-2008, 08:17 AM
 
Location: Ayrsley
4,714 posts, read 8,462,555 times
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Quote:
Originally Posted by anifani821 View Post
What is the situation here? I am rather surprised to see the discussions we have had lately that indicate people are having no problems getting loans. I thought things had tightened up and lenders were requiring FICO scores over 750, 20 % down, full disclosure of salary/assets, etc.

And of course, there is legislation wh/ has passed the Senate and en route now to the House . . . tightening lending requirements. Plus the overview of Fannie Mae and Freddie Mac . . .

So what is the real story w/ lending - here in CLT?
In my own experience, just from discussion I have had with my loan officer, I think part of it is that the banks are no longer looking at just the numbers, they are digging a lot more into personal situations to really decide if the potential borrower is a proper candidate for a loan. I.E. - the numbers, themselves, are no longer the only factor, just a part of it (albeit a big part) - kind of like SAT scores when applying for college.
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Old 07-14-2008, 08:17 AM
 
Location: Charlotte, NC
1,808 posts, read 5,861,116 times
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Hi anifani!

The problem I am finding with some of the online calculators is that they don't take into account any "special" considerations. The ones I've found are general in nature (and of course I understand why they are that way -- to give you a general idea of what you can afford).

I guess I'm just frustrated and it is showing in my posts. DH and I have been saving for four years and we really took a hit when he was out of work. I'm starting to feel like we're going to miss this buyer's market if we keep saving at our current pace and we'll be priced out of the market, just like what happened to us when we were living in VA. The rational part of me knows this probably won't happen, as Charlotte never experienced the bubble that the DC 'burbs did. But the emotional part of me is very anxious about it.

Quote:
Originally Posted by anifani821 View Post
CTRIBUCHER: have you used some of the online calculators - to figure out such things as your debt to income ratio, etc? That can be very helpful in planning for that first loan!

Don't get discouraged - sounds like you are on track. And evidently - there are still loans out there that don't require 20% down! Frankly - I agree w/ others who are stating - how can most people EVER get a loan if lenders are all going to require 20% down. I have been concerned that this is how things are going, but from what I am reading . . . seems more likely that to keep business flowing . . . lenders are just not going to be able to require that much as a downpayment.
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Old 07-14-2008, 08:24 AM
 
Location: State of Being
35,885 posts, read 67,046,730 times
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Quote:
Originally Posted by ctribucher View Post
Hi anifani!

The problem I am finding with some of the online calculators is that they don't take into account any "special" considerations. The ones I've found are general in nature (and of course I understand why they are that way -- to give you a general idea of what you can afford).

I guess I'm just frustrated and it is showing in my posts. DH and I have been saving for four years and we really took a hit when he was out of work. I'm starting to feel like we're going to miss this buyer's market if we keep saving at our current pace and we'll be priced out of the market, just like what happened to us when we were living in VA. The rational part of me knows this probably won't happen, as Charlotte never experienced the bubble that the DC 'burbs did. But the emotional part of me is very anxious about it.
I would feel the exact same way you are feeling. Most of us have had those life circumstances (job loss, divorce, medical bills) of some sort impact our ability to keep the cash flow going (much less add to savings).

What I am thinking is . . . since you are using cash to pay off bills . . . seems to me you should go talk to a loan officer NOW b/f paying anything else off. For ex. . . you mentioned student loans. If you are paying extra on those, that may not be the right move. It may be better to put that extra cash into savings . . . or use it to pay something else off. Your debt to income ratio is gonna be the big factor, plus your FICO score . . . You may find out after talking to a loan officer that you have things in order RIGHT NOW to get the loan - or that it is only a matter of paying down on a credit card. For example . . . if you have your credit cards under 50% of the credit line - that helps your credit score. So getting all cc's under that 50% threshold will automatically make your FICO score rise. Also, retail debt is weighted differently than educational loans. So paying down that ed loan may not be the most effective strategy!!! Crazy, huh???

Just mention this b/c you may be closer to (or already qualified for) a loan - and just don't realize it!!!
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Old 07-14-2008, 08:31 AM
 
Location: Ayrsley
4,714 posts, read 8,462,555 times
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Quote:
Originally Posted by ctribucher View Post
... and this discussion is why I don't sleep at night!

DH and I spent yesterday touring open houses. We are aspiring first time home buyers. Right now, we have about 10% saved up for our first house. We hope to stay as far under 300K as possible. We haven't talked to a lender yet but our research combined with our gut feeling is that 300K would be our absolute maximum price.

In the meantime, we are trying to pay down student loans and car loans (DH's car will be paid in 2 months. I still have 3 years left on my loan, but it is paid on time every month). We also have a bit of credit card debt that we incurred while DH was out of work for 11 months, but that will be paid off in a matter of months.

So where does that leave us in the current mortgage market? I feel like we're trying to do all of the right things and be responsible. But a part of me also feels like we're going to get hosed by the mortgage meltdown caused by some previous buyers. I feel stuck!

But I feel a bit better now after venting.
As long as your credit is good and you have cash in the bank you should be in good shape (having $30k for a downpayment puts you in much better shape than many people). As someone else mentioned, you can do an FHA loan for as little as 3% down. We were able to do our loan on our new place in CLT with a minimum of 5% down if we wanted (and I still co-own a house in Baltimore with $300k left to pay off).

Having other bills / credit accounts paid off looks good to potential lenders as well.

Also remember that, in addition to your downpayment, you will also have to pay closing costs which will be about 3% of the total purchase price.
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Old 07-14-2008, 08:34 AM
 
Location: Charlotte, NC
1,808 posts, read 5,861,116 times
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Thanks again, anifani!

Do you know where I can get more info on retail debt vs. educational debt? This is something I have been curious about. And it is my DH's loan, not mine... so I would love to have something I can show him.

Quote:
Originally Posted by anifani821 View Post
Also, retail debt is weighted differently than educational loans. So paying down that ed loan may not be the most effective strategy!!! Crazy, huh???

Just mention this b/c you may be closer to (or already qualified for) a loan - and just don't realize it!!!
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Old 07-14-2008, 08:42 AM
 
Location: Noth Caccalacca
5,556 posts, read 6,673,544 times
Reputation: 4851
Quote:
Originally Posted by anifani821 View Post
Tell me about it. That is how our parents and many of us who are older had to finance our first several homes. Programs came into existence along the way for first time home buyers . . . but basically . . . that is how most people got a loan - w/ 20% down - and high interest rates, at that. People waited for many years to get a home, unless they qualified for a special plan or FmHA, for ex.
ani - Before FDR re-organized the banks in 1932, the concept of a mortgage really did not exist for the general population. If you wanted to buy a house before that time, you had to save enough or borrow from relatives, the entire cost of the house! I wonder if some of the folks who abhore some of FDR's "liberal concepts", would be willing to roll back the clock and go back to the "good ol' days" where you rented until you could afford to pay for your house in cash!
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Old 07-14-2008, 08:44 AM
 
Location: Back in the Mitten. Formerly NC
3,819 posts, read 5,182,357 times
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In May I was approved for an FHA loan, 3% down (I have about 9-10%) with a rate of 6.25%. My FICO is 780 and I have no credit card debt (student loans and vehicle only).
I was actually disappointed. I was hoping for 6 or under (I have friends in April who got 100% financing, 5.85% with credit scores in the 600s )
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Old 07-14-2008, 08:45 AM
 
Location: Ayrsley
4,714 posts, read 8,462,555 times
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Quote:
Originally Posted by ctribucher View Post
Thanks again, anifani!

Do you know where I can get more info on retail debt vs. educational debt? This is something I have been curious about. And it is my DH's loan, not mine... so I would love to have something I can show him.
Anifani beat me to the punch. Go talk to a lending agent now and let them give you some advice on the best way to proceed. They can tell you what your current position is for buying a house and can provide some advice on what your next moves should be going forward if you want to to improve your ability to get a loan, and in what amount. As student loans are federally backed, they do not have the same impact in lending consideration as does credit card debt.

In addition, they not only look at total debt, they look at what all of your minimum monthly payments are; they want to make sure you can pay your mortgage and meet the minimum payment on all other loans (credit, car loans, etc).
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