Profile picture for user7801466

First time homebuyer - nervous, scared for the process

Hi All, 

I am looking to make that leap, buying a home for the first time. I have dreaded and realized that every year my rent goes high, when I know I can be paying a mortgage less than rent. 

I make roughly around 38,000 a year, single, good credit score (exp 676 and trans 692), need to pay a credit card off and have been on time with payments....but I don't have down payment saved. I am starting to save now.....with my stats, what price amount can I affrord?

  • November 13 2012 - Dallas
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (7)

Having "skin in the game"is important to mortgage lenders so having some money to contribute is necessary.  Why don't you contact your landlord to see if he/she will do a Lease Purchase or a Lease with an Option to buy.  Work out a price you will pay and then ask the Landlord to credit back $300 toward your purchase at the end of a year or two.  After one year, you will get a $3600 credit or $7200 that you cn use toward down payment and or settlement costs.  If your Landlord won't, find one that will! 

  • November 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

With FHA financing you will need a minimum of 3.5% down payment. Unless you were in the military then you may qualify for a VA loan with no down payment necessary.
  • November 28 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Generally I would say about 2.5 times your gross income.
We need to get you with a lender though and see exactly your situation.
It may depend on your debt, income, and other personal assets.
Getting you with a lender now to get prequalified will also let us determine not only how much home you can buy, but if you need to improve your credit rating for a better interest rate or loan program.  Also the loan officer can help you set goals regarding down payment and closing costs.  Typically now you will need a minimum of 3.5% for your down payment, and you may need approximately another 3% for your closing costs.    
  • November 27 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user044646
- 1st of all the Credit score are they FAKO or real FICO that the banks use.
- you can get FHA loan with 620 or conventional loan with 640+ (look it up)
- They take 3 credit scores ie. 700 610 660, so they'll use the median which is 660 of the 3 bureaus.
- Everything comes down to DTI (Debt to income ratio) which has a limit of 45%. so if you make 38000 a year.
38000/12=3166 your house payment should be under 1425.00 a month. this includes  your mortgage payment + PMI( if downpayment less than 20%) + Property Taxes + HOA and your monthly debt that shows on your credit report. ie. minimum credit card payment + car payment. that's all.
- now find a house price that will give you over all payment of 1425 including your monthly recurring debt. you can use zillow calculators.
  • November 27 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for wetdawgs
I suggest a lot of background reading and studying before reaching out to professionals.

A rough estimate of how much you can afford can be found by using an affordability calculator

Zillow has a lot of guides on the process.   to find the guides, go to the section of interest (on the left) and uncheck the options besides guides below the heading listing

Examples (there are many others)

The home buying process - step by step.

Selecting a buying agent.  (interview rigorously, not all are the same)

Why inspections are important

How to determine the offer price on a house

There are also many other real estate websites offering such guides, and the old stand by - the library!

After some reading, it doesn't hurt to talk to a lender or two for some in put.   As you don't have a down payment, closing costs and slush fund for the $$ realities of home ownership, you do have time to study. 

When you get to selecting an agent, your background studies will help you take the right steps to make an excellent  selection.    There is nothing wrong with talking with a dozen or more in the selection process,  as there are some great agents, many average agents and some awful agents out in the real estate world.








  • November 13 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

probably 160-200k and with FHA you need very little down. Let me help you with a pre-qualification at no cost to you. You can look at my reviews and see that I work hard to make my clients happy.

Thanks,
  • November 13 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

First, I suggest that your talk to a loan officer at 2 local banks.  They can tell you if you can qualify for a mortgage loan now, or, if not, what you need to do to qualify.

If you qualify for a loan, obtain a Loan Pre-Approval Letter. 

Next, you need a Buyer's Agent to represent your interests.  Buyer's Agents are at no chare to you.  The Seller pays the commission for the Seller's Agent and Buyer's Agent.  Ask you friends, family, co-workers, neighbors, etc. for recommendations for a Buyer's Agent.
  • November 13 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.