Should I wait or should I buy now?

Question

My husband and I were trying to get our finances in order to purchase a house in the next 6 months. We are paying off a few small loans, all totaling around $430 debt per month. We have another $1000 in debt in addition to the $430. We were also going to save $1000 to have in savings just to show financial security. We make $70,000 a year Now I'm worried that if we wait 6 months, we won't be able to get a mortgage loan if sub prime's bust. You see, we filed for Ch. 7 bk 4 years ago. We have one situation on our credit where late payments show up, but this was a car that we sold to someone else who was paying the payments. We have proof, via the contract and bank statements, that we weren't responsible. I was told that should do the trick for those late payments. Other than that, we have not had anything late in the past 4 years. My credit score is around 630 and my husbands around 600. I believe that this sub prime bust will lower home costs and be good for us, but we'll we qualify?

Answer 1

Get out of debt , even if the rates do go up, the price will off set this by going down. A lot..
This web site tells why.
http://www.breakingbubble.com/

Answer 2

No. Your credit is a complete mess, you wouldn't qualify for anything other than a sub sub prime loan, D-minus.
Real estate is sinking all over the country. Even if you buy now, what happens when your equity goes down and your interest rates go up?
Wait. Save $$$, buy CDs with your savings through a local bank. Improve your credit rating with them, then you will be a good prospect for good loan. By then you will have cleaned up the other derogatories on your record, except the BK which lasts 10 years.

Answer 3

Callawguy is right- save your money and wait. You will get a better loan with improved credit, and the price of the houses you're looking at is likely to fall as more foreclosures come on the market.

Answer 4

i would say buy now cuz you don't know what the rates will in six months.