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Old 05-30-2007, 04:39 AM
 
107 posts, read 655,043 times
Reputation: 134

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Ok, we are getting closer to the time we need to buy a house and need to start figuring out loans etc. I did speak with a mortgage agency awhile back when we first put our house on the market. Now we dont have great credit because we unfortnatly had to file bankruptcy(no rude comments please.. we had a rough time and that is a whole other issue) We were told we could try a FHA loan. Or try for a reagular loan. WE are also first time buyers.

Should we call and go through a mortgage company? try lending tree online? Just do the FHA loan? Do a first time buyers loan? THanks for your help!

Also how far in advance could we get preapproved. say we get preapproved this month but dont find a house for 2-3 months?
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Old 05-30-2007, 06:08 AM
 
Location: Bloomington IN
7,242 posts, read 8,883,705 times
Reputation: 18388
How long ago was the bankruptcy? In speaking with a loan originator yesterday, she indicated that most places will not do a mortgage if the bankruptcy is less than 2 years old.

Given the difficulty right now in financing for sub prime loans (your less than stellar credit and bankruptcy make that the most likely scenario), I would recommend using a local mortgage company/lender. You need to have a single person to speak with along the way. While there are some fine lending tree reps out there, most agents I know have had negative experiences with Lending Tree loans. Many of the loans don't close ever!

You have so many questions and seem to be lacking a bit of knowledge when it comes to types of loans, etc. Nothing wrong with that. We all have to start somewhere. My first suggestion is to start to educate yourself on the types of loans that might be available to you. For example, you mentioned a first time buyers loan. Technically there is no such thing, but there are many products used by first time buyers. It's hard to give advice without knowing the specifics of the loan.

My next suggestion is to decide on a Realtor and a lender. The two of them should be able to communicate and work through some of the difficulties you will face. Even if you don't find a house for a couple of months, you'll be fine. At least you will know the price range you should consider, etc.

I'm curious---how can one be a first time buyer and have a home on the market? Did you inherit it?

Good Luck to you.
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Old 05-30-2007, 06:53 AM
 
13 posts, read 82,852 times
Reputation: 17
Quote:
Originally Posted by wdwmom2 View Post
Ok, we are getting closer to the time we need to buy a house and need to start figuring out loans etc. I did speak with a mortgage agency awhile back when we first put our house on the market. Now we dont have great credit because we unfortnatly had to file bankruptcy(no rude comments please.. we had a rough time and that is a whole other issue) We were told we could try a FHA loan. Or try for a reagular loan. WE are also first time buyers.

Should we call and go through a mortgage company? try lending tree online? Just do the FHA loan? Do a first time buyers loan? THanks for your help!

Also how far in advance could we get preapproved. say we get preapproved this month but dont find a house for 2-3 months?
Bankruptcy happens! The imortant thing is you learn a lesson, get some relief from the stress, and move on. When shopping for a home do it by figuring out what you can afford a month and work backwards. Lending Tree and others like that sell your info to lenders across the country. When closing on a house you want to be able to track down your lender if there are an hickups. A lender you hae never seen from 3 states over isn't going to help that much. My advice with lenders is to start with a bank, then a lender or mortgage broker. Don't be afraid to ask a Realtor for a referral or two. Don't ever pay someone to run your credit or take an application, most will do it for free.

The sooner you get approved the better. With bad credit most lenders can help you work on improving your credit score. When the time comes to buy a house the better credit score will help improve your rates, options, and terms.
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Old 05-30-2007, 09:08 AM
 
1,608 posts, read 9,291,893 times
Reputation: 943
I would skip lending tree! I've heard horror stories through the lenders they have on their site. Go through a local lender. Get your credit score, call several of them and be up front and honest with your situation and tell them what your credit score is, see what they can do for you. You'll get a much better deal and someone will give you a loan.
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Old 05-30-2007, 09:53 AM
 
107 posts, read 655,043 times
Reputation: 134
Thanks. the bankruptcy was settled June 2005. Now when you say local company local to where i'm at now or local to where i'm moving (i'm relocating to a new state) .

As for having a house on teh market. its technically my mothers house but she has unofficaly put it in my hands to sell. and then shes giving us a gift of some money to put toward our new house and the move
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Old 05-30-2007, 09:59 AM
 
Location: Montana
2,203 posts, read 8,630,402 times
Reputation: 1118
Quote:
Originally Posted by wdwmom2 View Post
Thanks. the bankruptcy was settled June 2005. Now when you say local company local to where i'm at now or local to where i'm moving (i'm relocating to a new state) .

As for having a house on teh market. its technically my mothers house but she has unofficaly put it in my hands to sell. and then shes giving us a gift of some money to put toward our new house and the move
Local to where you're moving. If you haven't already done so, get with a realtor to help you with your relocation plans. Ask for their suggestion on 2 or 3 good lenders in the area.

It's always better to work with a local lender (as in local loan person - can still be a nationwide company), since they know things that are specific to that area. Especially is this important when it comes to appraisals, etc.

Also, be sure to get a "Good Faith Estimate" from any loan company. That will show you how much your loan is costing you in fees. Oftentimes there is a big difference!
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Old 05-30-2007, 10:04 AM
 
107 posts, read 655,043 times
Reputation: 134
Should i talk to a few people and then pick someone , and can i get the good faith estimate without having every company run my credit? Thanks!
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Old 05-30-2007, 05:16 PM
 
Location: Virginia Beach, VA
2,124 posts, read 8,200,976 times
Reputation: 816
You should talk to your real estate agent and explain your situation (without too many specifics) so they can help recommend the mortgage person they feel can do the best job for you locally. Most sellers do not want pre-approval letters from out of state lenders.... too many problems can come up. the local lender who works with the agent frequently has a lot at stake. If he says he can make it happen, he better!! and no bait and switch!!

You should talk to a couple of lenders. they will all need to run your credit to give you a good faith estimate and let you know what they can work with, they will need your credit to be able to find out interest rate, type of loan, etc. But don't worry, you are allowed this without it adversely affecting your credit score.

Good luck and keep us posted. Bad things happen to good people. You understand that and now you are on your way to owning your own home. Congratulations!!

Shelly
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Old 05-30-2007, 09:27 PM
 
Location: NC
1,264 posts, read 2,194,619 times
Reputation: 554
I wouldn't let everyone run your credit.
Run it yourself online for free, show it to the lender you are looking at using, and have them base their opinions, and rates off that. Explain to them what you are doing.
When you are ready to pull the trigger, the credit can be repulled and you can go from there. Just under no circumstances do anything to harm your credit in the meantime. ie. buy a new car, make late payments, things like that, do everything the same and your credit should not change that much in the couple of months.
If it was discharged June of 2005 you should be fine as far as that is concerned. But, then the question then falls into what income, what assets, and how much home you can afford given the area, and your other debts.
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Old 05-31-2007, 01:48 AM
 
Location: Arizona
67 posts, read 230,678 times
Reputation: 49
Try Lenox Financial Mortgage LLC. 1-800-661-2165
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