I am looking to re-locate w/ my girlfriend out of state. She makes 50,000 a year, and I will be making 45,000+ a year. She has a credit score in the 700-800 range, and I am in the 600 range. We want to buy a house. She doesnt know this, but i am going to propose if I get the job out of state. She will say yes..lol..I know this. The basis of question is how does a mortgage/loan application work when you are engaged? We are only looking to buy a house in the 100,000 - 150,000 range. We can certainly make that work w/ our incomes. Our credit card debt is around 2,000. However we do not have money to put anything substantial down on a down payment. (unless I tap my 401k). Can anyone offer any advice? We are 100% wanting to buy a house vs renting.
2007-10-11 08:00:54 · 7 answers · asked by podzman 1 in Business & Finance ➔ Renting & Real Estate
You can be financed together and be put on the deed together as co-owners just as a husband and wife would; you don't have to be married to own a house together. You'll both just be entitled to equal portions should your plans change and you part ways.
If you would prefer not to do that, then one of you would have to leave yourself off the deed/mortgage.
Pretty simple.
2007-10-11 08:12:34 · answer #1 · answered by ? 6 · 0⤊ 0⤋
I know that you will not want to hear this, but you should wait until after you are married to purchase a house.
I have heard this story so much in the pass, and you will say the same thing. We are in love and will not break up, we have been together forever.
Then two months later the guy is calling me on the phone saying how can I get rid of this B - - - h and the girl is on the other line saying I am gonna put his junk on the curb unless he signs the house over to me the B- - - - -D
Our laws are set up for written agreements, legal marriages not those that decide to live together until they get married.
Now if you insist on buying the proerty before getting married, make some type of legal agreement as to how you will divide the property, who is entitled to stay in the house in the event of a break up, the responsibility of the person moving as to making the mortgage payment.
Why do you think most people of means make a pre-nub? For legal things that might happen, they are still in love.
Let's put it like this, if things work out this is a document that you and your pretty bride can look at and laugh about in later years.
Find a mortgage broker to complete a mortgage application.
This mortgage broker will immediately get a credit report on the both of you. The one that earns the most income wise will be the primary borrower and these are the credit scores that will primaryily be used.
If you have sufficient scores, there are still lenders that will give you a !00% mortgage.
You have to be very careful in signing your loan doc's. Everything about your loan will be in the loan docs.
Before you sign your loan docs make sure you get an understanding from your mortgage broker about the interest rate, any balloon payments , adjustable rates so you can figure out when the rate go up that you will be able to pay the increased monthly mortgage payment.
Don't sign the loan doc's if they differ from what your mortgage broker explained to you. Get an understanding you an always sign the docs at a later time.
If you sign the loan docs and then get an explanation it is too late. There is no three (3) day right of recission for those that are purchasing homes yet.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-10-11 08:24:06 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
Make sure she says yes to the proposal before you look at houses. She will have a lot to say about what she wants and where she wants to live, don't make those decisions for both of you. Good news for you is that it is a buyers market. Meaning that it should be very easy to purchase the home with no many down. Many times you can ask the seller to make the down payment, but they may raise the asking price by the same amount. I would look at real estate sites together, my favorate is blueroof.com. Then pick realtor, they will walk you through the rest. It really is not that painfull, but it does take time to close 2-4 weeks. and you can't move in nutil after closing. Good luck.
2007-10-11 08:13:53 · answer #3 · answered by thomas m 3 · 0⤊ 0⤋
It will work the same whether you are married or not.
While everyone is happy and in love, get a legally binding document on what will happen with the property if one of you dies or becomes disabled, if you break up or if you get married. This very simple document will save you TONS of aggravation down the road.
In the meantime, save save save every penny you can for a down payment. Get the CZ ring for now (I know, it sounds cheesy but you'll be happy you did). Stop eating out. Stay home rather than go to the movies. You'll need everything you can scrape together.
2007-10-11 08:43:48 · answer #4 · answered by godged 7 · 0⤊ 0⤋
Lenders will want approximately 20% down to give you the best rates. If you pay less you will have the extra cost of paying PMI until you get more equity in your home. Lenders will look at both peoples income and credit to issue a loan. Even though you are engaged, you are still considered two single people. The loan and title will be in both names.
2007-10-11 08:10:17 · answer #5 · answered by Diane M 7 · 0⤊ 0⤋
Your marital status matters not. It is possible to easily get a home with no money down. I did it last year with my first home purchase. If you have good credit it makes it easier. Check out here for tips and info http://www.buy0down.com/
2007-10-11 10:12:14 · answer #6 · answered by Danno_D_Manno 4 · 0⤊ 0⤋
If you are buying it, it doesn't matter if you are engaged. If you 2 are buying it jointly, then it still doesn't matter if you are engaged or not
My wife and I bought our house before we were married, we both showed our income and debt and bought the house joint with survivorship (so if one of us dies the other gets the house)
2007-10-11 08:12:58 · answer #7 · answered by Michael B 5 · 0⤊ 0⤋