I have a question about when to buy a home...(warning...LONG)?

Question

First of all my husband and I moved from a high cost of living/poor market area to a low cost of living/buyers market. Good for us except that it took us 9 months to sell our old house and a few more months to recover from that financially! We are lucky enough to be renting a 4 bedroom acreage for only 450 a month but we are itching to find a house to buy. We live out in the country and my husband makes about $20,000 more than the average family income and I stay home with our 3 kids but we don't have the best credit. We have been considering waiting until the summer and paying off the last of our debt...not much, only a couple grand, but we are also considering paying off one or both of our cars to make our monthly budget easier. Each of our loans has about 8800 left on it..his has 1.9% and mine is 18%. We have a mortgage company that will help us get a loan and all we need to come up with is a couple grand as long as we don't get a buyer's agent and let them act as ours. Ideas

Answer 1

Who says you can't have a buyer's agent???? The lender? If so, this is really none of their business. If you are already talking with a builder, etc, then they may have promised to pay the closing, etc in lieu of the commission for the agent.

I would pay off the car loan with 18% interest. God that is HIGH.

If you are only paying $450 month rent that is great. You should be saving EVERYTHING.

If you decide to buy, you could go FHA with 3% down. That is the safest way!!

Do not go over a front ratio of 25% for your total PITI. NO MATTER WHAT THE LENDER says. He will not be paying the bill. He will show you that you can spend up to 36% of your gross income for housing, etc. BUT THIS IS A BAD IDEA. You are a stay at home month. Income at this point and into the future is fixed. Go with a 30 yr fixed and a front ratio of 25%. You will get less house, BUT YOU WILL NEVER LOSE IT/

Answer 2

Let me get this straight. Your mortgage company wants you to use THEM as a buyer's agent in order to get this mortgage ?

Can you smell 'conflict of interest' here ? Keep your real estate dealings SEPARATE from your borrowing dealings. Mixing the two together is NEVER a good idea. How do you expect THEIR buyer agent to fully represent you in a purchase when their mortgage arm stands to lose a deal if the buyer agent doesn't put together a deal ?

Answer 3

WOH! Did you say that you can save money in your transaction by not hiring a buyer’s agent? Who told you that? Usually that cost falls onto the buyer unless it’s an unrepresented seller and they have outright stated they won’t. Don’t be fooled into thinking the listing agent will give up half of the commission if you don’t bring your own agent with you. Chances are they wrote into the listing that they’ll get the FULL commission if you don’t have an agent. (So the money that would have paid for your representation goes to someone who WILL NOT help you in any way.)

Answer 4

pay off the loan at 18% first. Your new mortgage will most likely be much higher than $450 per month. you have the right idea about minimizing your debt first. just because a mortgage company can get you approved doesn't really mean you should move forward.

Answer 5

Stay put...work on your credit...pay off the high interest debt and any other...build your savings...and when all of that is accomplished...then find a different mortgage company because the buyer's agency stuff is just NOT right. They do not sound legit...do your resesarch and protect yourself. You are emerging from a difficult situation, do NOT go back into one!

Answer 6

whoa.

a; leave the loan on that costs only
1.9%.

b; as long as we don't get a buyer's agent. that is a red flag. That means that something is WRONG.

I am a RE broker and buyer's agent
and when someone keeps me away,
I know the seller or broker is
trying to swindle the borrower.

FIND another lender/broker.
[their restriction is also illegal]

Answer 7

yeah nook of substantial and Higgins. isn't all love offered at one time or yet another. we've the affection that is offered on the line yet even in eveyday existence isn't love offered via presents, dinner, it can't be what we call grimy love in spite of the undeniable fact that it remains offered. wheather that's a guy buying for a woman or lady for guy. take care dave playstation not something is unfastened.