Where do we start on owning our own home?

Question

Now would be a good time to get a house thats either pre-foreclosed, or foreclosed? Do we go to a bank institution? what company/bank should we use? We live from check to check. We own just one of our cars, got 2 years left on the other one, tons of hospital bills and of course cant forget the student loans....Someone suggested we get the house then about a year into it get some kind of loan that would pay off the house and our bills. Does this ring a bell to anyone? HELP

Answer 1

If you thinking about owning the house and right now you are living from check to check- thing twice before you will make this move. To be reasonable your future mortgage payment w/ tax insurance&PMI can't be higher , then your rent - can you find something like this in the area you are living? I'm not even talk about for how much mortgage you will qualify base on your credit and your financial statements.Also consider , that owning the house coming with different responsibilities- if something break down there is no landlord to take care of the problem- you need to pay for this.

Honestly answer some question to yourself and talking with the mortgage broker will not hurt you either. For me this move only will make sense if your mortgage payment will be less , then your rent.

Answer 2

If you're living from paycheck to paycheck, I'm assuming you have no/little savings.  What will you be doing for a down pymt and reserves?

If you're talking about taking over payments from someone in pre-foreclosure....you'll need to document YOU have been making the payments.  As for getting a loan in about a year, that's called a refinance.  To be able to get cash out, you will need to put monetary equity into the property.

As an underwriter, we want to know that you have something $$ invested in the property.  Not just the value of the home went up.    Ahhh the good old days when the values go up.

Answer 3

well the market is a buyers market but if you are living check to check it might not be a good time to purchase a house you might find yourself more in debt with a home you have up kept and unexpected things can happen if you don't have a good reserve to cover the unexpected items don't buy.  Esp if you are buying a foreclosure chances are they will need more work than normal.

Answer 4

Definitely buy a house.  Check with a bank loan officer. You may not need any downpayment or as low as 3 % under certain conditions.

Answer 5

This mortgage meltdown is not over, and deals will be available down the road a piece, so don't go making any offers just yet.

You should get prequalified.  If the bank says no, realize they are not the only source for money.  Banks often cherry pick the best of the qualified borrowers.

Here are some guidelines to keep in mind so you know if you might possibly qualify:

Credit score should be 680+. Min. down right now is 3% for FHA which will cost you more to do.  I can still work with 5% down but many places need 10%.  If you have less than 20% to  put down, you will have to pay mortgage insurance, which will add anywhere from 1/2 point on up to your interest rate, while you have to pay it. Most banks want to see no more than 50% of your last 2 years gross W2 Income committed to your payments (proposed payment for house/taxes/insurance, car, credit card minimums, student loans etc.) and that you've had the same job for at least 2 years.  They also want to see that you've got some money left over that you can keep in the bank, as a cushion.

Rule of thumb on house paymets: your housing cost for 80% of $100,000 purchase, or $80,000, borrowed at 6.5% 30 yrs fixed with taxes and insurance would be about $636/mo.  This is after you come up with $20K.  If you only came up with 3% ($3K) for an FHA your payment would come in around $800/mo. at the same int. rate.

One good thing about mortgages is the interest, which is most of the payment at first, is tax deductible, so your income taxes will go down meaning more of the money you make will be usable for housing expense.

Answer 6

You sounds like you'r looking for hand out or free house.If you get any help from any bank institution at the time I got say you'r very lucky.Most banks want some upfront cash b4 any else and from your writing you said you live from paycheck  to pay check maybe you start saving for one year and try after that.We have 10'000's houses foreclosed in Las Vegas,NV and near by counties.I saw an ad on local tv saying we have a house starting $50,000 cash.I am buying a lottery like most working people hoping I get luck and if I won $50,000 I can start my own business and do what I love to do.All I need is 50,000 cash I have plans and everything.

Answer 7

buying a home right now is a great thing to do, there are so many foreclosures on really nice houses you can get a great deal... i would suggest thinking about paying off the debt first since buying a house is a big thing but you can also try and get prequalified.. it doesnt hurt to try and they will let you know if you can buy one or not or if you should pay off debt etc, most mortgage lenders can point you in the right direction...if you are unsure of which mortgage lender to go with you can always find a local realtor and see who they would suggest (they usually work with someone for the home loans)... found some great home buying information that i think you will find helpful, it may not be a site from your area but its really useful.. good luck

http://www.beachcitiesrealestateonline.c...

http://www.beachcitiesrealestateonline.c...

Answer 8

Start by talking to your bank and ask to be prequalified for a mortgage.  They'll tell you if you can get financing and for how much.  If you can't now, work on paying down your debt so you'll be able to eventually.