First time home buying

[Tillys_mom]

My husband and I have been looking at homes in all of our various areas we may be moving. We wanted to get qualified for a home loan and we found a home we really liked. They told us our credit is great and they were impressed at how prompt it showed on our bill payment history. My husband is also going to make a lot of money. They always tell us they can almost guarantee we will be approved by our credit then once they see how much student loans my husband has they are floored. We do have a lot, roughly $75,000 but my husband went to one of the top private engineering schools in the country! Ugh! No wonder nobody can sell their house. They wont even lend money to us! It's ridiculous! I've been very cautious with our money and everything just to insure we would have no problems such as this in our future. I know people have more than this in student loans. If anything I have gained out of this my husband and I are going to start a college fund for my son. I don't ever want to put him through this.

[hha]

So sorry to hear all this..The banks are like that now, because of all the foreclosures..My son just bought his first house in October, he got it with no money down, and he put it in his and his fiances names..He was very lucky, as they're not doing those kind of loans anymore...This country is in a world of hurts, and, unfortunately, it's hurting everyone..things will work out for you..the thing is, if you find a house anymore, they want about 20% down on it..if you have that, then I'm sure you will find a bank that will lend you the money

[Bizzymammabee]

Originally Posted by Tillys_mom

My husband and I have been looking at homes in all of our various areas we may be moving. We wanted to get qualified for a home loan and we found a home we really liked. They told us our credit is great and they were impressed at how prompt it showed on our bill payment history. My husband is also going to make a lot of money. They always tell us they can almost guarantee we will be approved by our credit then once they see how much student loans my husband has they are floored. We do have a lot, roughly $75,000 but my husband went to one of the top private engineering schools in the country! Ugh! No wonder nobody can sell their house. They wont even lend money to us! It's ridiculous! I've been very cautious with our money and everything just to insure we would have no problems such as this in our future. I know people have more than this in student loans. If anything I have gained out of this my husband and I are going to start a college fund for my son. I don't ever want to put him through this.

Even if you have that bill then wait until he is actually earning that salary and then do the prequal on the mortgage amount. Right now your debt to income ratio is very uneven. Also the bigger of a down you have the better you look to them.

The housing industry is doing badly as a side effect of all these banks robbing people and the brokers falsifying papers. If the banks weren't so greedy with their interest and did that push to sell people on interest only mortgages things wouldn't be so bad.

[Tillys_mom]

You are so right!!! That is what happened to my in-laws. They built a home and did an interest only loan and they keep refinancing. They are so stressed about the house that they hate it. They can't afford it! I refuse to do interest only. They had no problem doing a zero down loan for us, because that's what we would need. It's just the student loans that are giving us problems. It's a shame the way it's working now.

[Bizzymammabee]

Originally Posted by Tillys_mom

You are so right!!! That is what happened to my in-laws. They built a home and did an interest only loan and they keep refinancing. They are so stressed about the house that they hate it. They can't afford it! I refuse to do interest only. They had no problem doing a zero down loan for us, because that's what we would need. It's just the student loans that are giving us problems. It's a shame the way it's working now.

Just hang ten and rent a few months into his gettin that better job. It changes your financial outlook and you will get your 0 down.

Right now you have that big loan and his smaller income so it looks iffy.

Those interest only loans were a disgusting thing for the banks to make. They literally in my opinion took advantage of the naive buyers that just want to own something for their hard work.

[Tillys_mom]

Originally Posted by Bizzymammabee

Just hang ten and rent a few months into his gettin that better job. It changes your financial outlook and you will get your 0 down.

Right now you have that big loan and his smaller income so it looks iffy.

Those interest only loans were a disgusting thing for the banks to make. They literally in my opinion took advantage of the naive buyers that just want to own something for their hard work.

They didn't base the mortgage on the income we have now, it's the income he is going to have when he graduates.

[Bizzymammabee]

Originally Posted by Tillys_mom

They didn't base the mortgage on the income we have now, it's the income he is going to have when he graduates.

Don't worry once he has the income as a set income and not projected things will go faster. There are also some banks that are way better with first time homebuyers and they don't take advantage of them. I used Cendant (which are the number 2 lender nationwide) they were really good. They are now called PHH Mortgage.

Which bank did you do your prequalification.

[Tillys_mom]

Originally Posted by Bizzymammabee

Don't worry once he has the income as a set income and not projected things will go faster. There are also some banks that are way better with first time homebuyers and they don't take advantage of them. I used Cendant (which are the number 2 lender nationwide) they were really good. They are now called PHH Mortgage.

Which bank did you do your prequalification.

We went through GMAC (the real estate agent told us she was the best in the area). I don't see that though. Our real estate agent is also finding it hard to believe they wouldn't give us a loan. It's really crazy! Our government isn't allowing anyone to better themselves. We have to start somewhere. I think I'd rather just stay home and rent here then go far away and buy a dump.

[Bizzymammabee]

Originally Posted by Tillys_mom

We went through GMAC (the real estate agent told us she was the best in the area). I don't see that though. Our real estate agent is also finding it hard to believe they wouldn't give us a loan. It's really crazy! Our government isn't allowing anyone to better themselves. We have to start somewhere. I think I'd rather just stay home and rent here then go far away and buy a dump.

GMAC is the parent company of PHH...lol. I can guarantee once he is actually at that job and they are not projecting income you will be fine.

Ok don't use it as an excuse to not move...lol. I know you were iffy.

[Tillys_mom]

Originally Posted by Bizzymammabee

GMAC is the parent company of PHH...lol. I can guarantee once he is actually at that job and they are not projecting income you will be fine.

Ok don't use it as an excuse to not move...lol. I know you were iffy.

LOL Oh you know me all too well!!! My husband had an interview today and he said they were going to get back with him by Wednesday of next week. If he accepts that job it will be roughly a $5,000-$10,000 pay cut a year. I'm starting to wonder if it would honestly be worth it just to insure us all being happy. My husband should have the most say so, we aren't saying no to anything or yes to anything yet. We'll have to really sit and talk it out, (if we ever get a chance since we have a young one). This weekend maybe we will get a few moments to ourselves.

[Bizzymammabee]

Originally Posted by Tillys_mom

LOL Oh you know me all too well!!! My husband had an interview today and he said they were going to get back with him by Wednesday of next week. If he accepts that job it will be roughly a $5,000-$10,000 pay cut a year. I'm starting to wonder if it would honestly be worth it just to insure us all being happy. My husband should have the most say so, we aren't saying no to anything or yes to anything yet. We'll have to really sit and talk it out, (if we ever get a chance since we have a young one). This weekend maybe we will get a few moments to ourselves.

Oh hells no a paycut in this economy and you have a child...make the move so he can earn more and feel a sense of accomplishment for all that hard work and student loans he owes.

I know your having a hard time moving away from your family but it will be ok. Just think of the better future you will secure for your little dumpling and also know that your husband like any man wants to know they are taking care of their family. While he loves his occupation that work was grunting and he did it to secure a more prosperous future for your family.

[Erin]

You don't want to do a 0% down. House prices are too volatile right now. We bought our townhouse 4 years ago. People are listing these for what they paid for them! FOUR years ago! That means if you have an agent list it they pretty much take your down payment leaving you with nothing... If people had put NOTHING down they would be owing the bank...

We want to move out of the area and get a less expensive house but we don't know if we can even afford to have an agent to list this one! They say you should only spend 25% of your take home pay on your mortgage. We realized we can't possibly get a single family house and stay under that. The only options are to put more down or buy a cheaper house (which doesn't exist here!) We will probably end up moving and renting while we save up more $$ before buying a new house. It doesn't sound fun after owning a house for 4 years, but in just 6 months to a year you can save so much!

If I were you I would focus on paying off those student loans and saving for a down payment. Then you can figure out which town or suburb you want to live in!

Also, since you aren't sure you will like the area you do NOT want to have to sell a house after a year or two. I would just rent something really nice and don't give into that crap about buying being better than renting. It's not always true and it depends on your situation and location. We outgrew our house in just these few years and now we are practically stuck with it as the market stinks here.

[hha]

Originally Posted by Bizzymammabee

Just hang ten and rent a few months into his gettin that better job. It changes your financial outlook and you will get your 0 down.

Right now you have that big loan and his smaller income so it looks iffy.

Those interest only loans were a disgusting thing for the banks to make. They literally in my opinion took advantage of the naive buyers that just want to own something for their hard work.

I'm almost sure, they've done away with the 0 down because of all the foreclosures..My hubby heard something on the news about it not too long ago..Our son got his in October, and it wasn't too long after that..most banks do require you to have at least 20% down anymore because it's so risky with people losing jobs, etc..And, I can see where they're coming from..they lend the money with 0 down, and you lose your home, they're the ones that get hurt by it

[hha]

Originally Posted by Erin

You don't want to do a 0% down. House prices are too volatile right now. We bought our townhouse 4 years ago. People are listing these for what they paid for them! FOUR years ago! That means if you have an agent list it they pretty much take your down payment leaving you with nothing... If people had put NOTHING down they would be owing the bank...

We want to move out of the area and get a less expensive house but we don't know if we can even afford to have an agent to list this one! They say you should only spend 25% of your take home pay on your mortgage. We realized we can't possibly get a single family house and stay under that. The only options are to put more down or buy a cheaper house (which doesn't exist here!) We will probably end up moving and renting while we save up more $$ before buying a new house. It doesn't sound fun after owning a house for 4 years, but in just 6 months to a year you can save so much!

If I were you I would focus on paying off those student loans and saving for a down payment. Then you can figure out which town or suburb you want to live in!

Also, since you aren't sure you will like the area you do NOT want to have to sell a house after a year or two. I would just rent something really nice and don't give into that crap about buying being better than renting. It's not always true and it depends on your situation and location. We outgrew our house in just these few years and now we are practically stuck with it as the market stinks here.

That's because Illinois STINKS...that's where I'm originally from, and my Mom is still there about 2 hours from Chicago..Her property taxes on her house alone would be aruond $4000 a year, but, she gets a little discount for her age..our house down here is valued at aroudn $200,000, and our property taxes are around $400 a year or a little less..Illinois is one of the worse states to live in with property taxes, gas, etc..I would never move back up there

[Bizzymammabee]

Originally Posted by hha

I'm almost sure, they've done away with the 0 down because of all the foreclosures..My hubby heard something on the news about it not too long ago..Our son got his in October, and it wasn't too long after that..most banks do require you to have at least 20% down anymore because it's so risky with people losing jobs, etc..And, I can see where they're coming from..they lend the money with 0 down, and you lose your home, they're the ones that get hurt by it

0% is too risky. For the most part people tend to have to get a piggy back mortgage to cover the whole cost of the purchase. They have a 30 year conventional with a decent rate and then a piggy back with 9% and more to be able to cover the cost of that house.

Houses here in NY are crazy. I got mine for $247k 7 years ago and now the house is worth almost $600k according to the govt..the houses are now selling in the mid to upper $500k range. My friend bougth a year ago around the corner for $530k and put down I think 5% and did the conventional and piggyback. I find that rediculous and scary as hell.