Profile picture for EracliusDiaz

I am interested in planning to buy a small house?

I am first-time home buyer. Moreover, I am planning to get marry within a year (August 2014). 

I would like to start the ownership of a small property at no higher than $120, 000. I would like to obtain a 15 year mortgage so that I pay my house faster. 

I just have just been promoted to a better job at the Veteran's Affairs (VA).
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My monthly gross income is about $2200. However, my credit score is low (620+). 
I want you to give me advise in buying a home and start the planning. So that I may choose wisely all help that might be available to me as firs-time home buyer. 

Please contact me to get me started. 

THANKS. 



  • August 21 2013 - Austin
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Answers (7)

Best Answer

Great question.  Because you have a year timeframe you can work on your credit.  That will be the biggest single factor in achieving the best financing options.  As a Realtor and Mortgage Broker I work with lenders that will easily work with your credit but you should really focus on increasing your scores over the next year to qualify for the best options available.  It will save you countless thousands of dollars over the life of your loan.

First thing you want to do is associate yourself with a lender who you want to work with throughout the process and who will take the time to explain with you today what needs to be done and get you where you need to to achieve your goals next year.

Carefully review your credit and make sure that nothing is further damaging your scores.  Make sure everything you do is positive going forward.  That means paying your bills early and at the very least on time each and every month.  Also, and this is important.  If you do have established credit cards (not debit cards) do not close them and do your best to get the balances owed below 40%. One major factor in your credit score is the percentage of credit utilization.  So if you do have outstanding debt on revolving cards paying that down will greatly help your scores.

Also, because of your income and the house you are looking to buy your overall debt load will be a major factor in being able to buy a house you are looking to be at.  Interest rates will most likely be somewhat higher than they are today so you will want also pay down or pay off as much of any debt you do currently have.  

This was a pretty basic general idea of what you need to focus on.  There are also a lot of down payment assistance programs that you should look into.  These can possibly help you with your required down payment.  Balance paying down any outstanding debt with saving because buying a home is expensive and you need to have funds available for unexpected happenings because they will happen.

So you have time but you also have a lot to work on depending on where you stand and the factors that are causing your credit score to be in the low 600's.  I hope this helped and I wish you good luck with your objectives.  You can do it as long as you plan accordingly and looking at this with a year perspective shows that you are already in the correct mindset.  

Best of luck to you.
  • August 23 2013
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Profile picture for Carole Tyne
First - Frank - the buyer is VA - he doesnt need downpayment assistance --- please refer to your preferred lender to explain the different programs.
Mr Diaz - contact a lender - they can assist you on how to rebuild your credit.   The better your credit the better loans rates that will be available.   Contact Agent to find out what is out there for your desirable purchase amount.   Check out the areas.   You may want to re aline locations due to price or how much will need to spend to get into the areas that work for you both.   
Make sure your sp to be had their credit chked also.
Regarding the 15 year - suggest for first time buyer to not tie yourself into commitment - there will be other expenses that will come up. May not want to make it so tight for yourself.    Suggest just making extra payments against your principle - than you can make it 15 yr without tiring yourself into it.
  • August 26 2013
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If you are not working with any mortgage company yet, [deleted by Zillow moderator. Please see our Good Neigbhor Policy for posting guidelines] I have a down payment asistance for first time home buyers and I believe this mortgage company I work with accept a 620 score. 

  • August 26 2013
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Speaking to a mortgage broker will set you up for success, I think most of us Realtors would be tickled if your clients were working 1 year out with a lender!
  • August 23 2013
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Profile picture for EracliusDiaz

Excellent advise Sir,

I will go ahead and follow your feedback.

I am wonder, does Zillow have affiliated home mortage creditors (Affiliated Banks) I want to know because this same lender could help me develop a plan to improve credit score.

Let me know.

  • August 23 2013
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See if there are any Va loans available? Sounds like you have a good plan.

To your success,

Alex
  • August 21 2013
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I think you are on the right track....but don't pick a home without her.   The homes single men pick and married women want are normally entirely different.   It's pretty much the same when you're ready to go out, think you are dressed properly and she just shakes her head.

Pay your bills on time or early.  If you have credit cards pay them to where no more than 1/2 the credit is used....save up about six months of expenses.   
  • August 21 2013
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