Re: First time home buying
Check out Melonie's posts, (she's no longer on here) O believe she had some great financial advice, good luck!
Re: First time home buying
Is there any credit fixing you can do to bring the 680 up? I'd get the credit scores as high as possible for shopping around for loans.
Honestly FL is a great market for people with their situations sorted out and together- a lot of options & lots of pluses to most regions of the state.
Re: First time home buying
I have pretty low credit card debt at 3000 that I should be able to pay off within a year which should bump my credit score up over 700. We won't be seriously looking for about a year anyway so that should help. The only other debt I have is my student loans which are also pretty low. And yeah, the market here is pretty awesome right now. I have friends who's mortgages are lower than what we're paying in rent to our slack ass landlord. Like, A LOT less. We're looking at the outskirts of Orlando. I want a big garden and neighbors that are far, far away. :D
Re: First time home buying
Gia2608 should be able to help you!
Re: First time home buying
Quote:
Originally Posted by
rareaspasia
I have pretty low credit card debt at 3000 that I should be able to pay off within a year which should bump my credit score up over 700. We won't be seriously looking for about a year anyway so that should help. The only other debt I have is my student loans which are also pretty low. And yeah, the market here is pretty awesome right now. I have friends who's mortgages are lower than what we're paying in rent to our slack ass landlord. Like, A LOT less. We're looking at the outskirts of Orlando. I want a big garden and neighbors that are far, far away. :D
Look at Farmers Home Administration. They have low down payment requirements and they have maps on their website that list where they will loan. Lots of areas that are not all that rural are on those maps. Plus, it sounds like you might be looking for more rural property anyway.
HTH
Z
Re: First time home buying
I don't know your market at all, and definitely seek advice from a local mortgage lender and Realtor.
However, for a general weather report on where the market is headed, you may consider holding off for a year while saving for a down payment. All the indicators point to this summer being the absolute top of the market. That means, you are likely to lose equity in the first 5 years after buying your home.
Why is the real estate market starting to turn?
- New residential construction is going crazy. We aren't necessarily "overbuilt" like in 2006-2007, but there is a lot of brand new inventory due to easy lending for builders at the moment.
- Mortgage interest rates are creeping up. Higher interest rates=less market equity over time.
- Foreign markets are not doing well. A lot of US real estate investment has come from foreign money. There is less and less investment money available every day.
- Double digit price increases on starter and even mid-market homes can't go on forever. Eventually, buyers are going to stop shopping for over priced homes. In fact, that is happening right now in my market which is widely acknowledged as one of the hottest real estate markets in the US. Sellers are getting greedy and this gives buyers more options as homes stay unsold for longer and longer periods of time.
- And, of course, we still have wage stagnation. Until the middle class starts pulling down higher incomes, the real estate market can only grow so much before people run out of money.
The time to buy is at the bottom of a down turn. No one can predict when that will happen. But if you see a lot of clouds on the horizon, it's pretty safe to say that rain is coming.
So keep working on saving for a down payment and getting your credit score as high as possible. (BTW, 680 isn't terrible. There will be plenty of lending programs available to you.) Unless you NEED to buy a house right away, waiting until the market turns would be worth it.
Re: First time home buying
Thank you! That was extremely helpful. I will start watching the market really closely. I should be close to being largely debt free in about six months and plan to set aside my dancing income (and pay my taxes properly) to have a decent down payment on my part. He makes good money with low expenses so he can do the same. I remember how bad it was during the recession, it's why I started dancing actually and after watching my brother lose his home and my father file bankruptcy I have no intention of going through that myself.
Re: First time home buying
Pro-tip...if you know what to look for, (& look OUT for) older/distressed properties are not always a bad choice.
My late uncle was a genius at picking up basically shacks & turning them around. It's possible you just have to avoid mega problems & plan your work.
Re: First time home buying
I'm looking into the first time home buyer program. You only have to put 5%down. They also have it set up where you can borrow an additional 7k deferred to cover part/all of the down payment if you want.
Re: First time home buying
I do real Estate wholesale. Pm me or email / call and I can show you how to get discount properties (sometimes) and make money sending me deals. Anywhere
Re: First time home buying
Quote:
Originally Posted by
SnuffleUffleGrass
Pro-tip...if you know what to look for, (& look OUT for) older/distressed properties are not always a bad choice.
My late uncle was a genius at picking up basically shacks & turning them around. It's possible you just have to avoid mega problems & plan your work.
You have to be really careful with this. Buying real estate for your own personal residence is an emotionally loaded purchase. When we are overly emotional about our decisions, we will overlook some serious drawbacks and/or make the advantages seem better than they actually are. A lot of people would love to buy that stately old home on the cheap to later discover that it is basically uninhabitable and will need to be torn down anyway.
HGTV, like all reality television, is an illusion. Most very old, cheap homes are not savable. That is why they are so cheap.
If you can be cold and calculating about the decision, this will help a lot. Find a trusted contractor who will give it to you straight about what the house needs and how much that is going to cost.
Re: First time home buying
I am wondering about the mortgage lender aspect of this. It's supposed to be confidential, but do I have to tell them about it being camming or adult oriented work? I'd rather not, but not sure if they actually look into it past the fact that it's internet work. Can I just say I'm quality control? Like I check out websites and see if they're user friendly?
Re: First time home buying
Quote:
Originally Posted by
Mare
I am wondering about the mortgage lender aspect of this. It's supposed to be confidential, but do I have to tell them about it being camming or adult oriented work? I'd rather not, but not sure if they actually look into it past the fact that it's internet work. Can I just say I'm quality control? Like I check out websites and see if they're user friendly?
What do you say is your occupation on your tax returns?
Re: First time home buying
I'm hitting a snag that due to no employment history, no credit history and no loans my credit rating is so low it would wreck my husband's before we could buy a house together. His is great. Association with me would kill it. No individual thing I can do would fix it. I'd have to: get a normal salaried job for 5-10 years, get several credit accounts and use them, get a credit card and use it monthly and take out loans over the 5-10 years, all paid back well within the deadline in order to boost myself from 400 to 700.
Re: First time home buying
Quote:
Originally Posted by
MyRealNameIsWeird
I'm hitting a snag that due to no employment history, no credit history and no loans my credit rating is so low it would wreck my husband's before we could buy a house together. His is great. Association with me would kill it. No individual thing I can do would fix it. I'd have to: get a normal salaried job for 5-10 years, get several credit accounts and use them, get a credit card and use it monthly and take out loans over the 5-10 years, all paid back well within the deadline in order to boost myself from 400 to 700.
Are you sure about this?
Fixing it might not be that hard. You should probably look at financial counseling first.
Re: First time home buying
Quote:
Originally Posted by
MyRealNameIsWeird
I'm hitting a snag that due to no employment history, no credit history and no loans my credit rating is so low it would wreck my husband's before we could buy a house together. His is great. Association with me would kill it. No individual thing I can do would fix it. I'd have to: get a normal salaried job for 5-10 years, get several credit accounts and use them, get a credit card and use it monthly and take out loans over the 5-10 years, all paid back well within the deadline in order to boost myself from 400 to 700.
When was the last time you checked your credit report?
He can also purchase it as his "sole and separate property" but you would have to sign off on it.
Re: First time home buying
My husband and I have a home we brought through an affordable housing REALTOR with a company called Florida Housing Finance Corporation, a few years back. We got about 10,000 in Florida Assist Bond Money and I had a credit score of 640 or 50 at the time? But this was in Miami.
http://apps.floridahousing.org/Stand..._HomePage.aspx
Re: First time home buying
Quote:
Originally Posted by
SnuffleUffleGrass
Are you sure about this?
Fixing it might not be that hard. You should probably look at financial counseling first.
Already been through it with the bank. My credit card choices are between two, both with them, both with hundreds of fees, both for a minimum 12 months, as no other bank can offer me anything greater than a 25% acceptance chance and a history of declined credit card applications will further drag my credit score. Still a significant risk they will decline me for both cards. I have no prospect of getting a loan from them because I have no track history. And a mortgage is just "lol, nope". Even applying for anything greater than a credit card will reflect badly on my credit score. I've essentially put myself in the catch-22 of credit ratings: too 'old' and with too little history to qualify for the credit-building loans and cards I need to create a history.
Quote:
Originally Posted by
LAChloe
When was the last time you checked your credit report?
He can also purchase it as his "sole and separate property" but you would have to sign off on it.
Checked it only the other day. The issue is: he has never had savings. So the fact all our savings would be transferred from me to him in one lump sum may also affect our application, as it may be considered suspect. That is the safest course of action though. He can also legally claim I am his dependent, which will remove the pressure of "well, you're living with someone whose credit rating is 400, so we can't trust you". But it's still awkward for him to apply on his own, even if it's the only realistic way. If he's rejected for a mortgage or they decide my bad credit reflects on him, then his years of building credit may be wasted.
PS: A joint account would be another way, but anything greater than an everyday saver or ISA is again, bad news for his credit rating.
Re: First time home buying
Don't feel awkward or embarrassed going to talk to a lender. They see crazy stuff every day. Even if they deny you, they can help you to make a plan to be a home owner in the future.
If you want to start improving your credit, I highly recommend reading this thread https://www.stripperweb.com/forum/sh...t=guide+credit There is a ton of very helpful information. When I started to fix my credit from many years of irresponsibility and immaturity, it was a mess. But I read that thread and did everything I could to make my credit better. I now have excellent credit.
Start by disputing everything you can on your report. Also, get a couple of secured credit cards. Feel free to ask me questions. I know this is overwhelming but it is totally doable!
Re: First time home buying
Quote:
Originally Posted by
NakedNicole
I'm looking into the first time home buyer program. You only have to put 5%down. They also have it set up where you can borrow an additional 7k deferred to cover part/all of the down payment if you want.
This is the kind of lending that partially caused the savings and loan and real estate collapse in ’86.
It seems no one ever learns. Loan officers are paid on commission, and greed overcomes everything.
Re: First time home buying
Quote:
Originally Posted by
slowpoke
This is the kind of lending that partially caused the savings and loan and real estate collapse in ’86.
It seems no one ever learns. Loan officers are paid on commission, and greed overcomes everything.
As you mentioned just partial.. "The banking problems of the '80s and '90s came primarily, but not exclusively, from unsound real estate lending" The oil crisis after 1980, reduced demand and increased production which produced a glut on the world market. The result was a six-year decline in the price of oil, which culminated by plunging more than half in 1986 alone.
Then certain deposit brokers instituted a scam known as "linked financing." In "linked financing", a deposit broker would approach a thrift and say he would steer a large amount of deposits to the thrift who would lend certain people money. The people, however, were paid a fee to apply for the loans and told to give the loan proceeds to the deposit broker. This is all on wiki.
The key is to find a reputable and experienced lender. We purchased our Florida home in '84 and when 86 crisis came around we were fine. My husband and I had more problems with our real estate owner on a pvt sector where our restaurant sits in 09 then we ever had with the HUD program. I would also strongly suggest, to hire an outside inspector/contractor for the home, and HUD will do the approved fixings, you really can get beautiful homes on foreclosure in Florida.
Re: First time home buying
Unless you qualify for a VA loan I would be shocked if you got approved for anything honestly. Banks always use the lower credit score.
Re: First time home buying
Quote:
Originally Posted by
LAChloe
What do you say is your occupation on your tax returns?
I have a very small business as a ___________________.( sorry, can't let that cat out of the bag). So that is what everything is listed under. But that is self employed with no 1099. So it's better for me to use camming because I have stubs and a longer history with camming. I'd just really rather not tell if I don't have to. But the mortgage lender went through everything. She saw my 1099's and wasn't going to use my income, but since we just switched states we're stretching what we need as far as we can with her.
Re: First time home buying
Quote:
Originally Posted by
Mare
I have a very small business as a ___________________.( sorry, can't let that cat out of the bag). So that is what everything is listed under. But that is self employed with no 1099. So it's better for me to use camming because I have stubs and a longer history with camming. I'd just really rather not tell if I don't have to. But the mortgage lender went through everything. She saw my 1099's and wasn't going to use my income, but since we just switched states we're stretching what we need as far as we can with her.
Ok, but did you claim your camming income on your taxes? As long as you claimed it on your taxes under the other occupation you use, I don't think you need to tell her you cam. Just give her your tax records. What is most important is that you are claiming your income.