Planning to buy House next year - questions (sales, real estate)

[todd72173]

Hi,

We moved to middleburg hts last year in a 4 bedroom home. We have been renting since. We are thinking about purchasing same home. Now, we already bought a home in 2005 and sold in 2007 for a loss, so we are nervous about owning again. Our budget right now is about 175 K tops. We also want to look around ofcourse to see what else is available (forclosures). Right now, this home is near railroad tracks which is quite noisy at times - pretty much only drawback - but it is a biggie since it wakes us up almost every night in spring/summer.

Few questions

1 - Do we still qualify for first time home buyer? We bought first home in another state in 2005.

2 - Is our first step to get pre-qualified? If so, where do we go do that? We dont plan on using a real estate agent to start

[kaimik]

1. I don't think you qualify as a first time homebuyer. I believe you can't have owned a home in the last 3 years.

2. I'd do some research on mortgage rates in your area. Compare different lenders and then go directly to them for pre-approval.

Good luck.

[todd72173]

Its 3 years after last owned. SO we would have to wait until 2011. OK, thanks. Now, I need to find out best mortgage rates. I heard sites like lender tree put a ding on your credit report when checking. I need to find a safe way to search for loan without getting credit score hurt too bad.

[LewLew]

Originally Posted by todd72173

Its 3 years after last owned. SO we would have to wait until 2011. OK, thanks. Now, I need to find out best mortgage rates. I heard sites like lender tree put a ding on your credit report when checking. I need to find a safe way to search for loan without getting credit score hurt too bad.

You can call banks and lenders in your area and get a list of their rates. Only you know your credit score. If you know what it is currently, you can give them that number, and they will give you what your rate will be based on your down payment and your score. However, remember that could change based on DTI ratios etc when you go through the process and hit the underwriting desk. However, unless it's an incredible difference from the info you gave them, it should be close (within 1/2 point or so)
Good luck.
Don't use a lending tree. Just call a mortgage broker, and ask them or call around to different banks. Honestly, because of new and existing lending regulations, the rates are not going to be terribly different from institution to institution. The bargain basement lenders are no longer in business. Call 3-5 places and you'll get a gauge.

[todd72173]

Thanks so much both of you! Very helpful info and gives us some hope and guidance. Will wait until 2011 and begin calling local banks giving them our credit score in advanced.

[LewLew]

Originally Posted by todd72173

Thanks so much both of you! Very helpful info and gives us some hope and guidance. Will wait until 2011 and begin calling local banks giving them our credit score in advanced.

If you are waiting until 2011 b/c you want to be first time homebuyers, may I ask why? You can buy with the great interest rates now on FHA with a credit score above 580 (no severe delinquencies on your credit though), and 3% down. Depending on what you want to spend, that is a great deal. You never know where the rates or prices will be in 2011.
I'd see what you can find out with research now on an FHA loan, and if you don't like what you hear wait; but at least you'll know exactly what you might be passing up. Remember, banks and brokers do NOT need to pull your credit for approvals and research numbers, only full pre-qual.

[airics]

why are you waiting till 2011?

[todd72173]

I sold my home in Dec 2007. I would have to wait 3 years after sales date in order to qualify for First Time Buyer loan. Basically, I wont have 20% to put down, so First Time Buyer allows 3% down instead.

[airics]

you can buy now with 3%

[todd72173]

How can I buy now with 3%? FHA requires a 3 year waiting period to qualify after owning.