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first, i'd like to apologize if this has been brought up before.
my DH and I are actively househunting. our current lease ends at the end of july of this year. my question is when do put in our application for a mortgage? we have all of our paperwork pretty much ready to go for submission, i just don't want to apply too soon--or is it ever "too soon"?
on another note, we both qualify for a VA loan guarantee. we've also looked at FHA. our state is offering a first time homebuyers incentive (up to $5K), but you have to use FHA. any thoughts (pros/cons) on either programs?
IMO you should at least pre-qualify well before you are house hunting. That way you can know in advance what you qualify for, and if there is something outstanding on your credit report, you will have time to correct or mitigate. You don't have to lock in your rate when you apply, that comes much later when you've found the property that you want to purchase.
More than likely you will have to submit a pre-qualification letter with your offer so speaking with a Loan Officer now would make sense. Interview a few and work with someone you feel comfortable with and is easily accessible to you.
As far as the different programs you spoke of the best program for you will be determined by multiple things such as: down payment, credit score, income etc. Bring up the different options you would like informaiotn on to loan officers you are considering working with and see how they respond to you as part of the interview process.
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I agree with the above posters. You should get preapproved (this requires verification of information as opposed to taking the borrower's word for it) as soon as possible to ensure that you know exactly where you are positioned. Best to take as much of the guess work out as possible.
On another note, when comparing FHA to VA you need to figure out how long you plan on being in the home. Because the VA mortgage does not require a monthly mortgage insurance, the longer you are in the property the more attractive the VA becomes. Figure the monthly mortgage insurance at 0.55% of the loan amount, divided by 12 months. Also figure the FHA UFMIP at 1.75%, and figure the VA funding fee on the initial VA entitlement usage at 2.15% for no money down, 1.5% for 5% down, and 1.25% for 10% or more down (of course if the vet is disabled the funding fee does not apply). Hope this helps.
It has helped immensely. Thanks, everyone. We were pre-qualified (and subsequently pre-approved...that's another story) last summer, but had no real intention of buying since we just moved to the area and wanted to get familiar with our new surroundings. We intend on staying in our new home for a good while--we've moved around A LOT in the past few years and staying put looks really attractive.
i've got a couple of recommendations for lenders, so i'll be persuing those leads.
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