I have a question for the mortgage experts out there... My fiance and I are going to looking for our first house soon (as soon as he finds a job) and we are not sure what mortgage options we will have with the following factors: I've been at my job 4 1/2 years. We are going to wait till he is at his new job at least 3-6 months before starting. We are looking for something around $250K and will have only about 15K saved for downpayment & closing costs. We were thinking of putting 3% but then we'll be tight with closing costs maybe. What kind of mortgage options would be best under these circumstances? 80/20 (not sure exactly how it works, but have been reading up)? 3% down, no closing costs (is there such a thing?)... We are going to try to speak with a friend of a friend of a friend who is a mortgage broke in a few months just to get ideas, but I was wondering if anyone could give me a little head start on what i could look into??? TIA
Oh yeah and my fiance's credit is excellent and my scores are below. I have high balances on some new credit cards which I plan on paying off soon, but scores were in the low-mid 700's with lower balances so I hope to back there soon.
Re: Mrtgage options w/0 derogs, low can you get a sellers concession? (sellers pays closing costs, contract price raised by that amount.) its 100% legal...
Re: Mrtgage options w/0 derogs, low Thanks Nestea! I have heard of that, forgot what it was called. Ok, I'll keep that one in mind (that would actually be great!) Anyone else?
Re: Mrtgage options w/0 derogs, low 80/20 means 80% financed with 20% down. What you are looking at with 3% down is 97/3. I think you might mean is an 90/10/10. That is: 90% first mortage/10% second mortgage with 10% down. Usually lenders will only look at your past 2 years income to qualify for a loan so with your fiance working on 3-6 months, they may not factor in his income, only yours since you have been there 4.5 years.
Re: Mrtgage options w/0 derogs, low Usually 80/20 means 80% first mortgage, 20% second mortgage or HELOC. There are many combinations for the 20% so you see 80/10/10 (80% first, 10% second and another 10% third mortgages). I just got an 80/15 which is 80% first and 15% second (HELOC). I also had to put 5% down. The only reason for all these mortgages is to save PMI (Private Mortgage Insurance) which you will have to be paying monthly until you have more than 20% equity in the house. You can get 100% financing with just one loan but you will have to be paying PMI. They also offer 103% mortgages so you can cover the closing costs. My experience is that you have to put at least 5% down to get the best rates. If you do not put anything down expect to pay at least .5% more but that is about it as long as you have good credit, employment etc. I went through Countrywide and my experience up to now has been great. I hope this helps! Mark
Re: Mrtgage options w/0 derogs, low is your husbands new job in the same line of work as his old job? that would help them qualify his income to repay the loan...
Re: Mrtgage options w/0 derogs, low Thanks everyone! Yes, my fiance's new job will be in the same field as his previous job. I guess my main issue is that we have enough for downpayment of 3-5% OR closing costs, but probably not both. Then the second issue is that fiance job will be fairly new. I know somewhere out there there is a mortgage with our anmes on it!!! LOL
Re: Mrtgage options w/0 derogs, low How Changing Jobs Affects Buying a Home For most people, changing employers will not really affect your ability to qualify for a mortgage loan. For some homebuyers, however, the effects of changing jobs can be disastrous to your loan application. Salaried Employees If you are a salaried employee who does not earn additional income from commissions, bonuses, or over-time, switching employers should not create a problem. Just make sure to remain in the same line of work. Hopefully, you will be earning a higher salary, which will help you better qualify for a mortgage. FROM: http://www.realestateabc.com/homebuying/jobs.htm
Re: Mrtgage options w/0 derogs, low You must not get too tight... you may need, for example, major plumbing work or roof repair... make sure when you buy you have something put aside for emergencies... will you be having tenants?
Re: Mrtgage options w/0 derogs, low Yes, but only for Commercial Mortgages. Like 4+ units, mixed use, shopping centers, etc. but I have limited knowelege of residential mortgages and creative finance as well.
