Profile picture for carlenehawk

questions about home buying

I am wanting to apply for a home loan jan. of 2015. I have many questions on how to prepare credit and financials to get ready. I figure I would start now to make sure my home buying will be as seamless as possible.
1. I have 2 old (3years) delinquencies for utilities on my credit, should i pay them off or not?
2. I have a self employment income for breeding dogs plus a full time job. With my self employment income what will I need to verify it and how far back will I need? I heard 2 years tax returns.
3. I have about 30k in student loans, would it be better to pay them off or have 30k for a down payment?
4. My husband filled bk last year and has a huge garnishment (75k) that he pays monthly on so he will not be applying with me but he has a car in my name that he pays out of our joint bank account. Will I have to include that in my debt ratio?
5. I made 45k last year and plan to make about 55-60k in 2014 with a student loan payment of 330 and if i have to count the 280 car payment, possibly a 20-30k down payment, about what price range should I be qualified for?

I am planning on buying in the salem or area....thank you for your time!
  • December 03 2013 - Salem
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Answers (6)

Profile picture for John Squier
I recommend you start by talking with a mortgage broker or lender you trust and then speak with a financial planner. The mortgage broker/ lender will help you understand your qualification and basic financial terms for both cash out of pocket to close and also the breakout for the mortgage payment. The financial planner can provide you a larger scope of your overall investment strategy that may or may not include home ownership. 
  • December 06 2013
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I suggest talking to a qualified mortgage broker/lender and get pre-qualified. They can answer all of these questions for you.
  • December 06 2013
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Profile picture for Ofe Polack
Talk to a few mortgage brokers, explain to them what your goals are, and they will be able to look at your financial profile and provide advise to prepare you for January 2015  The best of luck!.
  • December 06 2013
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Profile picture for Ed Rorrer
What is your credit score?
  • December 03 2013
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1) How much are they for? Some loans are allowed to have collections as long as they are below a certain limit so it depends on the loan you choose and the amount owed.

2) Have you reported this income for dog breeding in taxes for the last couple years? You will need to do this if you would want this to be counted in the mortgage application.

3) That is a lot of money to pay off all at once. There are many borrowers that have student debt. As long as your income is strong to support mortgages and the student debt then you will have a better chance.

4) It is a good idea to not include your husband in the mortgage but any shared debt, such as the car, will be counted in your debt-to-income ratio

5) It seems that your debt-to-income ratio should work as long as those are the only major debts and expenses that you have. It is hard to give you a price range with the information you have given. There are other financial factors that come into play such as expenses, assets, credit, etc.

I recommend that you speak with a lender directly. This would be the most efficient way to see if you can qualify and how much you can qualify for. Lenders like myself would be glad to speak with you to help you get the loan that you need. So if you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • December 03 2013
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The best thing you can do right now is find a great lender you trust.  Ask your friends, family, co workers, even Agents who they use and trust.  Talk to them about what you want to do and they will look at your scores and tell you what to pay off first and so on to get your scores in the best possible shape.  That way when you are ready to buy a home you are prepared.  You want a pre approval anyway so why not start now. The lenders are there to support you and answer any silly question that you have.  If they don't then find another one that will.

Same goes for an agent to represent your best interest. Start shopping around to find someone you can talk to and will answer all your questions. Send you homes in your price range that way when you are ready you know what type of market you are dealing with.

Do your due diligence and make sure you are happy with your team. Don't sign a buyers agency until you know this is the right agent for you. ASK LOTS OF QUESTIONS
  • December 03 2013
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