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Old 08-07-2008, 04:04 PM
 
1,260 posts, read 2,150,178 times
Reputation: 373

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Thank you all for all the support in making my dream of owning a home come ture. I took the advise on the forum and it really helped because I knew nothing of buying a home.

I have been living in my home for 1 month now and my family and I are happy. I took you guys and gals advice for one complete year when my credit score was about 548. I am serious, this time last year my credit score was 548 average and all I knew was I needed a home for my family. I am 1st time home buyer. Now my score is 660 average and I got the home I wanted by FHA and hardly no money down.

Let me share some advise for 1st time buyers:

1. I live in Houston, so I went FHA. I recommend it.

2. Before buying the home determine how much money you can realistically afford for an escrow mortage payment. This include taxes, insurance, interest, PMI, and principal for the home. Get an estimated insurance quote for the region you want to live in and find out what the tax rate is for that area.

3. After determing how much you can truly afford each month from mortage, right it down. Seriously budget what you can afford from your pay check. If you like eating out 3 times a week then include it your calcuations.

4. Take what you calculated and go to a mortage calculator online and determine what size house you can afford. For instance, a 150k home will leave you with a escrow payment of about 1400, but that depends on your taxes, so get that rate of taxes for the area you want to move in.

5. Go FHA. The better your credit score the better interest rate you get. My interest is 6.1% with average FICO of 648.

6. Go to www.myfico.com and get a true credit score for all credit bearus.

7. You will honestly need a min of $10k in the bank. Even if you go FHA because all the inspection cost and so forth.

8. The bank wants to make sure you have money in the bank. You have to show you saved that money over time. You can not just store 10k in the bank instantly. The bank wants to see that you saved over time or monthly.

9. must be in the same job field for 2 or more years.

10. If you going FHA, no late payments within the last 12 months. If you have lates, call the company and begged them to remove that late, if that was your only payment.

11. You need money in the bank. You have to show you have cash in your savings. That helps alot.

12. Once you get the loan approval and find a house you think you want bargin with the seller to reduce the total cost.

Again, thanks.

Hope that helps. And let me know if you have futher questions.
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Old 08-07-2008, 04:09 PM
 
16,700 posts, read 18,913,643 times
Reputation: 6795
Interest is 6.1% with a FICO of 648?? Wow, you got a good deal, is that APR?? Good luck on ur new home!
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Old 08-07-2008, 08:22 PM
 
3,627 posts, read 12,402,826 times
Reputation: 2682
That is a GREAT deal. My dad can't get that on a conforming with a FICO of 791
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Old 08-13-2008, 01:22 PM
 
Location: northern california
380 posts, read 2,114,906 times
Reputation: 147
Quote:
Originally Posted by darrell2525 View Post
Thank you all for all the support in making my dream of owning a home come ture. I took the advise on the forum and it really helped because I knew nothing of buying a home.

I have been living in my home for 1 month now and my family and I are happy. I took you guys and gals advice for one complete year when my credit score was about 548. I am serious, this time last year my credit score was 548 average and all I knew was I needed a home for my family. I am 1st time home buyer. Now my score is 660 average and I got the home I wanted by FHA and hardly no money down.

Let me share some advise for 1st time buyers:

1. I live in Houston, so I went FHA. I recommend it.

2. Before buying the home determine how much money you can realistically afford for an escrow mortage payment. This include taxes, insurance, interest, PMI, and principal for the home. Get an estimated insurance quote for the region you want to live in and find out what the tax rate is for that area.

3. After determing how much you can truly afford each month from mortage, right it down. Seriously budget what you can afford from your pay check. If you like eating out 3 times a week then include it your calcuations.

4. Take what you calculated and go to a mortage calculator online and determine what size house you can afford. For instance, a 150k home will leave you with a escrow payment of about 1400, but that depends on your taxes, so get that rate of taxes for the area you want to move in.

5. Go FHA. The better your credit score the better interest rate you get. My interest is 6.1% with average FICO of 648.

6. Go to www.myfico.com and get a true credit score for all credit bearus.

7. You will honestly need a min of $10k in the bank. Even if you go FHA because all the inspection cost and so forth.

8. The bank wants to make sure you have money in the bank. You have to show you saved that money over time. You can not just store 10k in the bank instantly. The bank wants to see that you saved over time or monthly.

9. must be in the same job field for 2 or more years.

10. If you going FHA, no late payments within the last 12 months. If you have lates, call the company and begged them to remove that late, if that was your only payment.

11. You need money in the bank. You have to show you have cash in your savings. That helps alot.

12. Once you get the loan approval and find a house you think you want bargin with the seller to reduce the total cost.

Again, thanks.

Hope that helps. And let me know if you have futher questions.
Great post, Darrell. Congrats to you and your family on your new home!

I too want to give a big THANK YOU to everyone here for all your help the last several months. We just closed yesterday on our first home. It was a very stressful process, but I got through it thanks in no small part to the help and advice I got here. Just reading the various threads has been so educational. Everyone has been so helpful, but I do need to give a special thank you to renriq02 and rcarillo for all the extra help you both gave me.

My mind's still fuzzy so I can't think of anything to add to Darrell's tip list above. Except if you're in California, I highly recommend the book "How to Buy a House in California" by Nolo Press. That was a great resource too.

Good luck everyone and thanks again!
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Old 08-13-2008, 01:27 PM
 
Location: Sunny Florida
7,136 posts, read 10,667,768 times
Reputation: 9448
Congratulations and thank you for the update! I'm so glad everything worked out so well for you.
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Old 08-13-2008, 03:56 PM
 
4,963 posts, read 3,923,610 times
Reputation: 2917
Congrats on your home

I totally agree ; make sure you have the money for it.

Well done again

d
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