Would I be able to buy a house, someday?

Question

. My income is about 35,000 a yr. Im renting an apartment where I pay 1,075 and Im able to keep up with my rent and bills. Most of my friends have their own home and for some their mortgage payments are less than what Im paying rent. Now the bad thing is that I have bad credit, most are medical. I just got divorce and move to Dallas, so I just opend my bank account and I have no rent history.Im 37 and 2 boys. I really dont want to wait that long to buy a house, but Im afraid to even try. I m afraid to be rejected. How or what can I do to be able to qualify for a loan?

Answer 1

Depends what kind of house you want?

Answer 2

you can try now as many FHA lenders will over look medical collections. You will probably need to do an Ameridreams program to help with down payment and have your closing cost paid by the seller and have some cash in the bank and be in  the same line of work for the last 2 years and you may be able to swing it

Get with a mortgage broker in your area and see if you can get prequalified for a loan

I am a mortgage banker in TN & KY

Answer 3

WAIT! STOP! NO!

Ok, you could technically afford a house (You could buy a c**p shack for like $20,000), but you don't want that. Ok, so you have 2 boys, do you have a husband? If not, it'd sure help if you want a house. Lastly, about your friends. You know how they're paying less for they're mortgages? Well, it might seem good, but it's not. They are gaining hundreds of dollars in intrest that they need to pay every month too. Likely, they wont be done paying them in 40 years. Just try to buy something you can afford PLEASE. Having to pay $700 every month for most of the rest of your life will really s***w you up.

Answer 4

There are FHA programs available for individuals to purchase homes. You might also check with the city of Dallas to see if they have a program available for citizen of their city for assistance.

FHA have programs that require as low as 3% down on homes. For a $52,000 mortgage that is approximately $1560 down, FHA also make mortgage loans to individuals with low credit scores.

In the offer you make you might request that the seller pay all closing cost thus all you will have to pay up front is $1560 for the down payment.

In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book. Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores.  These credit scores will determine your interest rate.

The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

#1 One month of pay stubs for each person that will be on the mortgage.

#2 Six months  bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

#3 Two years of federal income tax along with the W-2 that match.

Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

Make sure your mortgage broker explain all your options so you may make an intelligent decision.

What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

So select the best option for you and your financial situation.



You should also get a Good  Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.



Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

Your mortgage broker will now order an appraisal to show proof of  the property value.

The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

I hope this has been of some use to you, good luck

"FIGHT ON"

Answer 5

You will likely be contacted by dozens of real estate agents from this post, I'm sure.

You can buy a home, especially if you can come up with the down payment.

There are programs to help first time buyers too, with lower points, and sometimes lower down payments, a professional realestate agent can help you qualify for them.

Your credit history has to be rebuilt, it may take a couple of years, and you can do that just by paying utility bills on time, and keeping a charge card open, and paying all payments on time.

First step, when you are ready is visit a bank, or institution you plan to get a loan from, like a mortgage company, and get PRE-qualified.

That means they give you a letter saying what they'd give you in a loan, for a home.

With that, you know what you can afford, and it's like gold, you can bargain for a better deal, because of being pre-qualified.

Some good suggestions, would be,

1. consider a mobile home, they cost less than $15,000 and can be easily maintained, and many look just like a "real" house.  If you don't like your neighbors, you can have it towed to another mobile home park.

2. If you can come up with "cash" in hand, you can bid on properties being sold at court house auctions, for repossessed, or foreclosed homes.  They often go for 1/3rd their appraised value.  You could get a 100,000 home for less than $40,000, but you have to have "cash" for the sell.

You might get a "rich" relative to subsidize you, and pay them back by getting another loan on the property, and pay them back from that loan.

Good luck.

Answer 6

Don't be afraid to be rejected!  The key is to find a home within your price range and to look into benefits for first time home buyers in your state.  Some give grant money for down payments and with a down payment you look better in the eyes of the lender.  Some states also have lending programs to give competitive interest rates to those with less than perfect credit.  

It also depends on how bad your credit is and if it can be repaired within the time frame you want to buy a house.

Just be careful of shady lenders, you don't want to end up with a mortgage you can't afford and be worse off than before.

Answer 7

Actually I would try to take all my medical bill's and all others and start new by filing bankruptcy and stay renting with trying to find something a little less and more affordable. Look at rental homes and start with renting to buy that can get you a start. You don't want to put yourself in more debt, that doesn't solve your problem. You want to improve your living statis and you can by reducing things in areas as you gain in others. Wait and be patient of trying to get a loan and work on getting all debts paid off so you won't have to much hanging over your head. Then move further at slower pace. Don't put yourself in what others are living like for they are dealing with more then they can chew and will have you end up the same way. You and your children will get what all you want and need in time. Don't rush and enjoy being together in all you do. Do what your heart says, not what others does.

Answer 8

yes you will if you make 120,000  a yr. if you can do that then you in that house!

Answer 9

There are several things you can do to improve your credit score and chances to be approved for a loan.  The best thing to do is go to your lending institute and talk to the "loan arrainger".  

1)Discuss matters with them.  If you are on friendly terms with the banking officials it will help.  

2)You should also get a copy of your credit report from each of the agencies.  When you have it you can challenge each bad mark on your statement.  They will have to research each item you challenge.  If the institute that made the comment doesn't give proof of the comment you can have it removed.  

3) Negative comments you cannot get removed you can put comments on as to why they are there and what is being done to correct them.

4) Get your debt under control - This means making all payments on time, paying off intrest debt.  DON'T use a "credit counseling" company that will "reduce" your debt to a percentage.  A comment is put into your file that is almost as bad as a foreclosure.

5) get a good payment history on three to four lines of credit.  After six months, contact the lenders explain what you are doing and ask them to make comments on your behalf.

6) Most of the time medical bills will not show on your credit report.  Try to make arraingements to pay a certain amount of the principle every month and stick to it.  

7) Structure your debt to income ration to be not more than 40% of your income.  If you can save 10% of net income for a downpayment.  If you can come up with even a 5% downpayment you stand a better chance.

8) goodluck and hang in there.  :)

Answer 10

Yes, you will be able to buy a house or condo in the future, but you have some work to do first. I don't know your area , but if you can find cheaper rent right now- it will help you save some money to pay off your medical bills or other stuff on your credit ( you need to improve your credit score) and also you need to save some money for your down payment.

Please don't stop dreaming about owning your own house, because if you shoot for the moon- at least you will end up between the stars. To keep this dream, maybe you will push yourself to change your job for better paying one and your dream became a reality sooner then you thing. GOOD LUCK!