I am going to graduate college in December, I am working part-time at the moment (around $13,000/yr earnings), but will be going full-time at the same job in December (around $24,000 salary). Right now I am renting, but I have found a townhouse that I am very interested in purchasing. Here is the breakdown:
Renting Costs: $385/month
(studio apartment, bad neighborhood)
Townhouse Value (according to PVA): $60,000
Townhouse Asking Price: $64,000
Assuming that I could negotiate a deal somewhere around $60,000, should I try to get pre-approved for the mortgage? I have a credit score of around 720, and no debt except for about $6,000 on a credit card. My vehicle is paid off, and like I said, I have a job lined up already for after graduation.
I would rather purchase a townhouse at a good price, and be investing monthly payments instead of giving my money to a slum lord. Can I get pre-approved based on my income now or in the future? Or do I have to work full-time first?
2007-11-07 03:27:34 · 6 answers · asked by sillyoleme 1 in Business & Finance ➔ Renting & Real Estate
you need to work full time...but lenders do make exception.
look at the mycommunity programs...it's zero down
fha may have better rates...but you will need 2.25% as a down payment.
have the seller pay closing costs to avoid coming to the closing table with a lot of money
2007-11-07 03:40:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The best thing to do is to talk to a bank...specifically a mortgage specialist. They can tell you whether or not you should wait until you go full-time.
I'd say it would be better to wait, because at $13,000 a year and not much credit, you may not qualify. Whatever you do, you do NOT want to have your credit pulled multiple times as your credit score goes down every time it is pulled.
It is definitely better to wait until you are pre-approved before you start looking at places. That way, you'll know what you can and cannot afford and won't get your heart set on something you don't qualify for.
There are a lot of really good programs for first-time home-buyers, so be sure to ask your mortgage specialist about your options there.
If you ever have any questions about anything during the process, be sure to have them answered before you sign anything! It doesn't matter if it has to be explained 10 times before you understand...just be sure you do understand!
2007-11-07 03:39:11 · answer #2 · answered by Loves the Ponies 6 · 0⤊ 0⤋
You won't qualify right now with out a full time job and no down payment. Banks have tightened up their lending laws. You say you dont have debt but half your yearly income is on a credit card. That doesnt look good.
2007-11-07 03:46:12 · answer #3 · answered by taz4x4512 4 · 0⤊ 0⤋
If you can put at least 5% down, you'll be able to get prequalified with that credit score alone, and at a very good rate, (normal prime/conforming rates). If you can't put 5% down, you'll have some degree of difficulty.
Good luck.
2007-11-09 02:07:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Go to a mortgage broker and get pre-qualified as best as you can. It's the only way to go. Sellers want to know in advance and it's the way everyone is doing it today.
2007-11-07 03:37:57 · answer #5 · answered by Irish 7 · 0⤊ 0⤋
It sounds like you would be able to get preapproved. I would go for it.
2007-11-07 03:36:39 · answer #6 · answered by Brenda 4 · 0⤊ 0⤋