U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 02-22-2009, 12:23 PM
 
Location: Loss Wages
1,311 posts, read 5,878,209 times
Reputation: 560

Advertisements

I'm not sure if this is the place to ask this or in Real Estate...

I would like to buy a home when the time comes, but I don't know much about mortgage loans and what to expect for first time home buyers. Is it really hard for first time home buyers to get a loan now? Is there still opportunities to find an home as a first time home buyer? It's really hard to save in this economy. What if I don't have enough for a down payment? Am I pretty much at a loss for buying a home? Where can I get good wisedom on preparing for such a huge decision? CAn I go into banks and talk to them or do I need to see other agents? Book suggestions? Websites? What things do I need to know?

I know it's probably quite a broad subject, but I figured I check in here and see what you guys would say...

Thanks!
Reply With Quote Quick reply to this message

 
Old 02-22-2009, 01:16 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,098,953 times
Reputation: 952
Although it is harder for a first time buyer to qualify than in the past, it is not difficult to qualify if you have decent credit, have a steady job, and make decent money. I can tell you based on the general theme of your questions that you should probably look into an FHA loan. FHA only requires 3.5% down, has very comparable rates to conventional loans, and is not based on credit score but rather the entire credit profile. That being said, many lenders have instituted minimum credit score requirements for their FHA mortgages, but if you have a 620 or better you should have no problem finding a lender that will work with you.
Reply With Quote Quick reply to this message
 
Old 02-22-2009, 02:16 PM
 
Location: Loss Wages
1,311 posts, read 5,878,209 times
Reputation: 560
Quote:
Originally Posted by Daddys///M3 View Post
Although it is harder for a first time buyer to qualify than in the past, it is not difficult to qualify if you have decent credit, have a steady job, and make decent money. I can tell you based on the general theme of your questions that you should probably look into an FHA loan. FHA only requires 3.5% down, has very comparable rates to conventional loans, and is not based on credit score but rather the entire credit profile. That being said, many lenders have instituted minimum credit score requirements for their FHA mortgages, but if you have a 620 or better you should have no problem finding a lender that will work with you.
Ok, for the moment I do have a steady job and decent pay. My credit has been pretty good my whole life. I paid off one vehicle and am currently paying off another thru a shared loan (the truck is shared and is paid for by the other person). I am also paying off credit cards steadily which are all currently closed til they are at zero. After that, only one will be opened for emergencies. Debt sucks. So, I'm pretty organized in my finances. Does any of that conflict with a fha loan application. I was curious of that.


What if I accept a position in another location. I may assume I would have to wait before applying for the loan. Am I correct in my assumptions? How long would I have to wait before its condidered steady? I know, that's sounds like a silly question. Could I apply while doing a move like that or is it unwise?
Where does one get FHA loans?opps, probably at a bank. Duh. Well, I know there's good banks and bad banks huh?
The bottom line here is to see what my options are in a loan then look for a house. Common sense. I just want to know what to be prepared for, is there a lot of hops to go thru, etc...
Reply With Quote Quick reply to this message
 
Old 02-22-2009, 03:30 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,098,953 times
Reputation: 952
Quote:
Originally Posted by deegers View Post
Ok, for the moment I do have a steady job and decent pay. My credit has been pretty good my whole life. I paid off one vehicle and am currently paying off another thru a shared loan (the truck is shared and is paid for by the other person). I am also paying off credit cards steadily which are all currently closed til they are at zero. After that, only one will be opened for emergencies. Debt sucks. So, I'm pretty organized in my finances. Does any of that conflict with a fha loan application. I was curious of that.
No issues at all based on what is written here.


Quote:
Originally Posted by deegers View Post
What if I accept a position in another location. I may assume I would have to wait before applying for the loan. Am I correct in my assumptions? How long would I have to wait before its condidered steady? I know, that's sounds like a silly question. Could I apply while doing a move like that or is it unwise?
Where does one get FHA loans?opps, probably at a bank. Duh. Well, I know there's good banks and bad banks huh?
The bottom line here is to see what my options are in a loan then look for a house. Common sense. I just want to know what to be prepared for, is there a lot of hops to go thru, etc...
Actually as long as the position is in the same line of work then you shouldn't have any problems. You may have to wait until you actually start the job and receive at least one paycheck, but that should be it.

As far as where to get an FHA loan, there are many banks and brokers one can get an FHA mortgage. Being that you are relocating it's possible that you will not have any friends or family that can refer you to a trustworthy mortgage professional. In that case perhaps you can get a referral from a real estate agent, and of course shop with a couple of banks as well.

Lastly, I wanted to make you aware that FHA does have loan limits that vary by location. Higher cost counties will have higher loan limits, and lower cost counties will have lower limits.
Reply With Quote Quick reply to this message
 
Old 02-22-2009, 03:31 PM
 
173 posts, read 436,828 times
Reputation: 148
Quote:
Originally Posted by deegers View Post
Ok, for the moment I do have a steady job and decent pay. My credit has been pretty good my whole life. I paid off one vehicle and am currently paying off another thru a shared loan (the truck is shared and is paid for by the other person). I am also paying off credit cards steadily which are all currently closed til they are at zero. After that, only one will be opened for emergencies. Debt sucks. So, I'm pretty organized in my finances. Does any of that conflict with a fha loan application. I was curious of that.


What if I accept a position in another location. I may assume I would have to wait before applying for the loan. Am I correct in my assumptions? How long would I have to wait before its condidered steady? I know, that's sounds like a silly question. Could I apply while doing a move like that or is it unwise?
Where does one get FHA loans?opps, probably at a bank. Duh. Well, I know there's good banks and bad banks huh?
The bottom line here is to see what my options are in a loan then look for a house. Common sense. I just want to know what to be prepared for, is there a lot of hops to go thru, etc...
Don't do it!!!! Closing credit accounts is one of the worst things for your credit score. Cancelling credit cards will lower your FICO score. Just pay them off and hold onto them at least until after you get your home for the sake of your credit score. Also, get that debt under control too so that you can get your home much easier. Good luck.
Reply With Quote Quick reply to this message
 
Old 02-22-2009, 05:59 PM
 
Location: Loss Wages
1,311 posts, read 5,878,209 times
Reputation: 560
Quote:
Originally Posted by Greenciti View Post
Don't do it!!!! Closing credit accounts is one of the worst things for your credit score. Cancelling credit cards will lower your FICO score. Just pay them off and hold onto them at least until after you get your home for the sake of your credit score. Also, get that debt under control too so that you can get your home much easier. Good luck.
Really? I always thought maintaining a smaller amount of credit open was better than haveing too much credit out there. I thought it would hurt my chances of getting a loan rather than the opposite.
Reply With Quote Quick reply to this message
 
Old 02-22-2009, 06:03 PM
 
Location: Loss Wages
1,311 posts, read 5,878,209 times
Reputation: 560
Quote:
Originally Posted by Daddys///M3 View Post
No issues at all based on what is written here.

As far as where to get an FHA loan, there are many banks and brokers one can get an FHA mortgage. Being that you are relocating it's possible that you will not have any friends or family that can refer you to a trustworthy mortgage professional. In that case perhaps you can get a referral from a real estate agent, and of course shop with a couple of banks as well.

Lastly, I wanted to make you aware that FHA does have loan limits that vary by location. Higher cost counties will have higher loan limits, and lower cost counties will have lower limits.
Where do you access information regarding loan limits in different counties? That's good to be aware of.

Luckily, where I hope to relocate, I do know some people and I'm sure they could refer me to some trustworthy mortgage professionals, however, it may be a good idea to ask a real estate agent as well. The more knowledge the better...hence this thread...

Anyone know of some websites that offere assistant in searching banks for FHA loans shopping? Sometimes, there's a useful tool out there. Others are not trustworthy to use.

By the way, thank you very much for all your suggestions and advice!
Reply With Quote Quick reply to this message
 
Old 02-22-2009, 06:22 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,098,953 times
Reputation: 952
Quote:
Originally Posted by deegers View Post
Where do you access information regarding loan limits in different counties? That's good to be aware of.

Luckily, where I hope to relocate, I do know some people and I'm sure they could refer me to some trustworthy mortgage professionals, however, it may be a good idea to ask a real estate agent as well. The more knowledge the better...hence this thread...

Anyone know of some websites that offere assistant in searching banks for FHA loans shopping? Sometimes, there's a useful tool out there. Others are not trustworthy to use.

By the way, thank you very much for all your suggestions and advice!

This is the link to the HUD website. From here you can access area loan limits, HUD approved lenders, and much more. Hope this helps.

Buying a Home - HUD
Reply With Quote Quick reply to this message
 
Old 03-23-2009, 11:43 PM
 
540 posts, read 1,063,356 times
Reputation: 545
Quote:
Originally Posted by deegers View Post
Really? I always thought maintaining a smaller amount of credit open was better than haveing too much credit out there. I thought it would hurt my chances of getting a loan rather than the opposite.
Not at all. If you have access to a massive amount of credit and hardly spend any of it, it looks far more safe. One thing you can do to raise your credit score is to pay off your credit card bills almost entirely BEFORE the bill is cut. That way you might only have a $15 dollar utilization on a $30,000 credit line--which looks good. You have to have a little bit showing up as a balance so that it at least appears you're using your credit.

Utilization is 30% of your credit score. It's also the quicket means of bringing your score up aside from disputing negatives.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top