I am a 33 year old single female, yearly income appx $45,000. I have rented for 10 years now and want to buy a home. I have two student loans ($20k total) and a car payment ($9k still owed). Not much in savings. Credit score not great from a divorce. I have no idea how to start going about seeing if I can get a loan. Suggestions on steps to take would be welcome.
2007-03-18 00:25:36 · 5 answers · asked by scigal 1 in Business & Finance ➔ Renting & Real Estate
You should go to a bank to find out what your options are. Your debt is not so bad...you should be able to save a little for a down payment.
2007-03-18 00:34:06 · answer #1 · answered by clarabel_s 2 · 0⤊ 0⤋
1. Though you might want to buy it might not be the best time for you to do so. This has nothing to do with the market and all to do with your situation.
2. Work on improving your credit. Get a copy of your credit report and make sure there are no mistakes on the report. If there are mistakes challenge them and get them removed. For the items that are negative see what you can do to improve the items. There are a number of steps that can be taken to legally improve or remove the negative items.
3. Sort out a budget and learn to live on less than you make. You need to save a bit. This will build up a bigger down payment and provide you with a cushion so you are not late with bills. More important when you are a home owner as expenses do come up for some major items.
4. Speak with a mortgage broker about your situation. That will give you an idea of what you might qualify for now and what will happen if you make improvement (credit, down payment). Do not shop around as multiple checks on your credit report will lower the score. Ask others for a recommended broker and then let them shop the market to see what might make sense.
5. Consider having 1 or more roommates as a homeowner. Extra income to help pay the bills or build up a cash reserve. Even 1-2 years of sharing the home will make a very large difference in your cash flow. In the early days of being an owner you will have all kinds of extra expenses. Furniture, tools, yard tools, curtains, etc.
6. Some universities have special programs for professors who are looking for housing. Mostly universities in expensive cities but see if there is something where you are working. Also consider the odds that you might switch universities. If you move soon after buying the costs encountered are hard to recover. Unless you own the property for 2-5 years (depending on the market) it would be a mistake to buy.
The above are very broad suggestions. Your specific situation matters and the right suggestions would change if you shared more details. Consider a trip to the bookstore. A larger one will have some books on buying a home.
If you need more suggestions or want to refine the ones above head over to my blog and post a comment. I will email you back.
Good luck.
2007-03-18 08:13:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Find out what houses sell for in your market as well as your fico (credit) score. Calculate how much you have to spend on mortgage payments each month. Seek expert advice; a mortgage broker has already been suggested, that's good. You should know that currently some "sub-prime" lenders are having financial trouble which could possibly make it harder to get a loan. Worst case scenerio you wait a little longer and get your debt paid down more. Just don't get a place that you can't afford. This will only make things worse. Best of luck.
2007-03-18 07:44:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Why not just see what you pre-approve for? Any mortgage broker, or bank you've dealt with for years, will be able to tell you what you qualify for. And look, if things aren't great with your credit, and money's tight, you can always consider renting a house to try one on for size. You might find that the dreams of white picket fence are a pain in the a** after having to mow the lawn, fix everything that breaks, freeze your butt off when you find out it's poorly insulated, etc. I wish I could get a 3BR apt and move--there's no rest for the weary.
2007-03-18 07:34:57 · answer #4 · answered by Peter 5 · 0⤊ 0⤋
Go to you nearst Hud office and apply for a FHA loan there is little or no down payment. and they can help you with the grant problem to. just visit a Hud websit and look at all the information that is there, sound to me like you qualify for a loan now. good luck and check out some down payment assistant programs that are listed on the site why you are there.
2007-03-19 04:04:58 · answer #5 · answered by candycane55 2 · 0⤊ 0⤋