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What a relief to find this place. Such a wealth of information.
I'm looking to make my first home purchase. I've recently moved to the Las Vegas area and I'm renting. I have about 6 months left on the lease and would be looking to move in around the time the lease is up (landlord has hinted he's looking to move back into the house later this year).
Salary is about $120K a year, credit score around 710. Solid work history for about the last 3 years. I took about 3 years off prior to that to travel. Current credit obligations (credit cards, cars, etc) is about 23% of gross pay. I have about $15K in the bank at the moment.
I'm a vet so I can take advantage of a VA loan. Considering I only have about $15K in cash, it seems a low or no down-payment scenario makes the most sense? Any advantage of choosing a FHA or trying to find a low down payment conventional option?
Most of the calculators I've used say I can handle a mortgage payment of $2500 - $3000 a month but I really would rather stay in the range of what I'm paying in rent currently which is about $1600. I figure that puts me in the neighborhood of about a $250K mortgage.
My wife is not a US citizen (has permanent residency though) and has either worked odd jobs or low paying jobs (mostly just to keep busy). She has zero credit history. All cars, credit cards, etc are in my name because of this.
Does it make sense to leave her off of the mortgage application? I can't see how her complete lack of credit history would help and I would think it would only hurt. She doesn't mind being left off the deed. She owns property in her home country which I'm not listed on any deed for so it's sort of a wash.
The other major area(s) I was hoping I might get some advice on:
What's the best way to find a lender? I know people have recommended asking friends and family but I'm relatively new to the area and don't really know that many people. Any suggestions?
I was planning on getting pre-approved as an initial step in my house hunting. I've read (possibly) conflicting info about pre-approvals. Some say that the rate is only good for 30 days and some say that it is good for up to 90 days. Does it make sense to get pre-approved before I even begin looking at homes? I'm one of those people who hates dealing with surprises so having the comfort of knowing the financing was all sorted out and I don't have to dig up old documents at the last minute seems like a more tranquil way to go about it.
I've read on here that Las Vegas is a strange market due to all of the housing inventory that is being kept off the market. Lots of bank inventory that they haven't foreclosed on. Is this still true (most threads go back 2 or 3 years)? Does it make sense to shop listed properties or is there enough upside in looking at short sales? Would I even be able to close a short-sale in six months if I haven't even identified a house yet?
Leave the wife off the application so that your score helps get a great VA rate. Yes, go VA and keep your cash doing other things, such as paying down other debt. Home mortgage interest is a tax write off, so max out the VA deal, and even negotiate seller-paid taxes/closing costs, IMO.
Were I you, I would start shopping. You have a tremendous grasp of things for a first time buyer. Keep trusting your instincts.
One variable: is any of your income bonus or commission? Here is where a lender will help, as long as they review credit, paystubs, and tax returns, ensuring a No Surprises process.
Vegas remains an incredibly awesome Buyer's Market. Short sales - you really need the advice of a pro IN that market. You can get a great deal, or you can get burned.
Interview SEVERAL lenders without allowing them to pull credit. Ask them if they fund their own loans, ask the loan officer how long he/she has been doing PURCHASE business, and ask them about VA. Ask the loan officer "can you help me get my DD214?" And then see how they reply. If they do not instantly reply with a yes, and the specifics of how to get that, and your COE, move onto the next one.
I miss Vegas, I've been thinking of moving back there. Trust your instincts!
Income is actually closer to $130K with bonuses (no commission). Since I'm pretty sure I'll qualify for more than what I need, I like to look at things in terms of the base salary. Bonuses aren't guaranteed :-)
We're starting to look now. Visiting open houses, driving around neighborhoods, etc. Haven't reached out to lenders or realtors yet. The few we've met at open houses tend to lose interest when I tell them we're about 6 months off. LOL.
Thanks for the advice on qualifying loan officers. I have a copy of my DD214 but that's a pretty good indicator of their experience handling VA loans. I might tell them I'm unsure if I still have mine and ask if they know how to get it.
Income is actually closer to $130K with bonuses (no commission). Since I'm pretty sure I'll qualify for more than what I need, I like to look at things in terms of the base salary. Bonuses aren't guaranteed :-)
We're starting to look now. Visiting open houses, driving around neighborhoods, etc. Haven't reached out to lenders or realtors yet. The few we've met at open houses tend to lose interest when I tell them we're about 6 months off. LOL.
Thanks for the advice on qualifying loan officers. I have a copy of my DD214 but that's a pretty good indicator of their experience handling VA loans. I might tell them I'm unsure if I still have mine and ask if they know how to get it.
The first level is "Does this person have VA PURCHASE experience." But you don't want someone who has been riding the various refinance waves. Purchase business, especially involving VA and short sales (very dicey), you need someone adept and experienced. As-is short sales are likely going to be met with un-meetable demands by VA, if they are in rough shape.
My former roommate just applied for a VA loan. He has a CS in the high 600's and no cash down. He made around $72K last year gross. He was approved for $210K, except he has been at his job for slightly under 2 years, so that was dropped down and he is "locked in" at a $180K approval at 4.1XX% for 30 years fixed APR.
$299/mo student loans
$565 car-note
$@3-500/mo CC payments.
VA loans are awesome and if you can, I would.
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