Profile picture for user954684

Just I just go for it or wait until this summer?

Here's the situation... My credit score is in the 730s according to two different credit agencies. I have 10K in savings to go toward a down payment. No car payment or credit card debt. I owe about 60K in student loans and pay about $400 a month on that. I am single and make around 53K a year. I've been at my current job for a little over a year. I've gotten one promotion and I'm getting a raise 11/1/12 and a promotion on 5/15/13. My lease is ending in February. Should I take the plunge now and try to close as my lease ends? Or wait until this upcoming summer when my earnings will be higher and I'd possibly qualify for more? (2009 tax return earnings only 36k, 2010 tax return 55k I add this because I know mortgage lenders want to see 2 years of tax returns)

Thanks for your advice.
  • October 28 2012 - Corona
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Answers (9)

Noone has a crystal ball and can tell you what the mortgage rates will be come time your lease has ended. I would get in touch with at least two mortgage lenders see what they have to offer you. Right now in many areas it is still a buyers market, but that may not be the case come summer, I know in my area 100-400K is a sellers market, and also in this area I can get you in a house cheaper than a rental. At the end of that lease you have no equity in a house, ask yourself how much will you spend in that rental. Also I would interview at least three Realtors in you decide to go the buying route. Please if you have any questions feel free to contact me.
  • November 07 2012
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Profile picture for Anthony7777
More debt is just what you need! Check out patrick dot net or Dr housing bubble's blog before you make a move.
  • November 07 2012
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Interest rates and prices are at a great stage for a buyer. The buying process may run past your lease expiration. This depends on your clarity of the type of property you want to purchase. Can you convert your lease to month to month if this happens? This will take some pressure off of you in case you don't find a house between time. The higher wages will lower your debt to income ratio, I would use my lease rate as a rule of thumb, lenders want that also.
  • October 29 2012
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Profile picture for wreynol4
I would get in touch with some mortgage professionals and see what they can do for you versus summer 2013, and go from there.  Good luck!
  • October 29 2012
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Now is an amazing time to buy because of the very low interest rates and if your lease ends in February, keep in mind, it could take that long to find the "right" home.  I would recommend getting pre-approved and then talk to a real estate professional in your area to see if you can find a home in your price range that meets your needs.  If you can, then it's time to start looking now.  If you can't, then wait for your debt to go down and your income to go up, but be thoughtful that if interest rates do creep up, your payment will be affected by both the potential higher price of the home and the higher cost to borrow money.  Whatever your decision, make sure you work with reputable folks in YOUR area - they know the market.  Good luck!!
  • October 29 2012
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Profile picture for Ofe Polack
Contact at least two mortgage brokers and see what they can offer you now and later in the summer.  Then make your decision.
  • October 28 2012
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I would start with a mortgage company and get pre-qualified to see if you can get the loan you are wanting. That's the best place to start then you will know what you can qualify for and speak with a real estate agent to see if there are homes for sale in your price range in the area you would like to live.
  • October 28 2012
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I am not a mortgage professional, but are you a w-2 employee or self-employed?
  • October 28 2012
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My advise would depend on how much home you are trying to buy.  If you see something that fits your needs and you can afford now, buy now.  If you will be getting another raise when you get your promotion in May and need that additional income to help you qualify to buy the home you really want, then I'd wait.  I don't think the rates are you going to change all that much next year.  Good luck! 
  • October 28 2012
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