LosBanosLive

Topic : Questions for the Real Estate agents here

Posted By: Photog_Mama on January 15, 2010, 11:37 am

Hi everyone. I had some quick questions and figured I'd ask them here first as I know Geneva would probably know, or maybe Linda can ask her hubby.

first off, my fiance & I have decided enough is enough with Renting. :thumbsup:

We currently rent a small 2bdroom and were looking to expand. After searching websites and going around town, most 3 bdrm homes arnt going any less than about $900 a month. After really thinking about it, and knowing the shape the economy is in, we figured trying to buy a home might end up being cheaper for us in the long run. So here are my questions that I have, that I kind of wanted an idea of what were looking for before we actually consult an agent and all of that.

1. What is the minimum credit score that you see right now needed to finance a house on your own. (no co-signer) I have horrible credit, so my fiance would put the house solely in his name.

2. Are theyre options out there to help if you have less than perfect credit?

& 3. What does a normal down payment usually look like & average intrest rates?

Thanks in advance to anyone who can help. We're still pretty young so we really would like to take advantage at any opportunities we have to provide better for our family. I know I could probably get a one sided answer from just one agent, but Im the type of person that would rather ask the opinions of many and see what an average answer is. Thanks again

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Nikki, Connors Mommy

March for Babies Relay Chairperson
www.marchforbabiesrelay.org

www.marchforbabies.org/connors_mama55

"As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them" - J.F.K.

Posted By: GenevaBrett on January 15, 2010, 8:53 pm | Post: 1

Well Photog_Mama you have asked some interesting questions.

First off, the lending guidelines seem to change monthly! For most lenders the minimum FICO credit score is 620, however some mortgage bankers (those who lend their own money) allow a 610.

I have a flyer from a lender that says they can go below even 610 ... just got the flyer yesterday, haven't tried the lender.

Same lender says they have options for less than perfect credit.

FHA (typically first time homebuyer - meaning you haven't owned a home within the past 3 years) program requires 3 1/2 % down - $ can be gifted to you from family. This new program offers 98%.. again I can only tell you what the flyer says. I have absolutely NO experience with the program.

It's not all that uncommon for couples to buy a home solely in the name of the person with the higher credit score, because the interest rate is, in part, based on credit score. The higher the score, the lower the interest rate.

If you have less than 20% down you will probably have to have private mortgage insurance until you have 20% equity; I don't know the percentage but that will raise your monthly payment.

In addition to the mortgage payment, insurance payment (lender requires casualty insurance - we call it homeowners insurance) and property tax payment, don't forget maintenance and upkeep will be YOUR financial responsibility.

So, as you continue your investigative process ... the next step is talking to a lender. It's very important to know how much money you have to shop with before you start shopping! That's not just the purchase price either. It's imperative you allow room in your monthly budget for home maintenance,actually living and unexpected occurances that cost $, including home repairs or washer/dryer replacement. Those precious children get more expensive as they age so don't try to max out how much house you can get today. It's much more sound to buy a smaller home, build some equity over years and maybe then buy up.

We Realtors are basically matchmakers ... we help you find what you're looking for after you determine what it is you can afford and want.

I hope that helps.

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The secret of life is ten words long, each with two letters.
"If it is to be .... it is up to me!"
Every private citizen has a public responsibility.

Posted By: Photog_Mama on January 17, 2010, 9:31 am | Post: 2

Thank you so much Geneva! :fonzie:

Your answers helped me understand a bit better where we stand and where we go from here. I agree with you too, starting small now and building equity is probably the best bet for us, then we will buy a "dream home" later down the road. We want something to call our own and not just throw our hard earned money down the drain or so we can pay someone else's mortgage! Again, thanks Geneva! It is greatly appreciated

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Nikki, Connors Mommy

Posted By: CARYNCOX on February 6, 2010, 7:46 pm | Post: 3

Also remember if you close a home by april 2010 you can get up to $8000 cash back. That is very important. That could reimburse you for your closing costs.
Also when you make the offers, you have to be able to "beat" the other offers and get the house you want. That is very important.
I have "beat" out other offers for my clients because there are certain things on the offer, that, if submitted, would instantly cause it to be declined and you don't have a chance. REO homes are different than making an offer on a home that has a real seller. You either go by their guidelines or you don't get the house. You must have a realtor that knows that information and then you have a great chance at getting any house.
There are alot of different things you can do when looking for a house and alot of financing alternatives to get you into that house.
I would be more than happy to sit down with you and your fiance and let you know the differences...anytime.
I am a realtor that is in the office every day all day, call anytime. 826-2029

Candlelight Realty
Caryn Cox, Broker

Hope to hear from you soon.

Edited by CARYNCOX : February 6, 2010, 7:47 pm