Buying a house....help!!!

DH and I have no clue what we are doing when it comes to buying a house. What do we do to even start looking into getting a mortgage or qualifying for one?? We don't even know if we can afford to purchase one. I feel like our debit is taking over and we don't know if we should continue renting, buy a house or maybe buy a condo/co-op. We have some money left from the wedding that techinically we could use as a down payment....but then its like all our money is gone.

Is anyone in the same situation? What is everyone else doing. With this economy I can't even think about looking for a raise or better pay. I am about to get another job just to pay bills.

You will need atleast 10% to put down (no where will give you less, I don't think) and money leftover for closing costs.

We went to bethpage federal credit union and they gave us the pre-approval so we could start making offers.

If you have a real estate agent you can ask them who they recommend as far as getting pre-approval. We just used out bank and had to bring in some paperwork, old pay stubs etc. and he gave us a pre-approval letter so we could start making offers. Once we made an offer we hired a lawyer and he took care of all the paperwork and stuff because there is a ton of it and I would not have the first clue what anything is, After you make an offer you have to have the house inspected. If all goes well you are ready to apply for a mortgage. Our lawyer helped us choose a bank to apply for a mortgage with and then we just filled out paperwork and discussed rates. You can either lock in your rate right away or float to lock which means you have a certain amount of time to watch the rates and if they go down then you call and lock in. We waited about 2 months before we locked in. Once you are locked in that is pretty much it and they will give you a date they are looking to close. The whole process took about 6 months for us from start to finish.

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Posted by MrsHtobe

You will need atleast 10% to put down (no where will give you less, I don't think) and money leftover for closing costs.

We went to bethpage federal credit union and they gave us the pre-approval so we could start making offers.

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Now some of the banks are showing to need only 3% of the cost for downpayment...most people can't afford the 10% anymore. I sure as hell know we can't come up with 25-35k. Thats nuts!

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Posted by lexi1890

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Posted by MrsHtobe

You will need atleast 10% to put down (no where will give you less, I don't think) and money leftover for closing costs.

We went to bethpage federal credit union and they gave us the pre-approval so we could start making offers.

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Now some of the banks are showing to need only 3% of the cost for downpayment...most people can't afford the 10% anymore. I sure as hell know we can't come up with 25-35k. Thats nuts!

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DH and I are in the same boat. Want a house. Not sure where to start. Not a heck of a lot of money for a down payment (maybe $12K - $15K). I started looking online. I've found a few houses I like so I do a drive-by. Not sure what our next steps will be.

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Posted by lexi1890

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Posted by MrsHtobe

You will need atleast 10% to put down (no where will give you less, I don't think) and money leftover for closing costs.

We went to bethpage federal credit union and they gave us the pre-approval so we could start making offers.

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Now some of the banks are showing to need only 3% of the cost for downpayment...most people can't afford the 10% anymore. I sure as hell know we can't come up with 25-35k. Thats nuts!

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I don't know - we were told that we needed 10%, maybe it was just where we went? Its def hard saving up the money. . .I hope it works out for you!!!

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Posted by lexi1890

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Posted by MrsHtobe

You will need atleast 10% to put down (no where will give you less, I don't think) and money leftover for closing costs.

We went to bethpage federal credit union and they gave us the pre-approval so we could start making offers.

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Now some of the banks are showing to need only 3% of the cost for downpayment...most people can't afford the 10% anymore. I sure as hell know we can't come up with 25-35k. Thats nuts!

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Hate to be a downer with all of this, but if banks are taking low down payments, it isn't going to help us get out of the situation the economy is in now...I'm sure that played a part in the credit / economical crisis we are having now...People don't put enough down, and then in the end, still don't have the $$$ to pay the mortgage.

we've been told we can get a loan with as little as 3% down but that is in florida - we are going to try for the full 20% though - it s-u-c-k-s though b/c we have the 20% but that is about it in our savings right now so that means no money for repairs or furniture so we have to figure out how we want to do it....im hoping by the time we would close we could save a few thousand more so we can do the 20% and still have money to throw around....i cant imagine doing it up here when 20% down is like 80k

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Posted by Future Mulligan

we've been told we can get a loan with as little as 3% down but that is in florida - we are going to try for the full 20% though - it s-u-c-k-s though b/c we have the 20% but that is about it in our savings right now so that means no money for repairs or furniture so we have to figure out how we want to do it....im hoping by the time we would close we could save a few thousand more so we can do the 20% and still have money to throw around....i cant imagine doing it up here when 20% down is like 80k

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Well, as for furniture, so many places are offering good financing deals right now...many have 0 payments for as long as a year...We've recently bought a ton of furniture, and some of the deals are just incredible...

ugh I can't even imagine starting this process. I mean we definitely have enough for a 10% down payment on a house (well most likely a starter home here on LI).

And it stinks knowing we have the money and can't get a house yet. I am still in my masters and have $$$$ loans and DH is getting out of the military and has to get a job. So we know we are in no shape to buy a home yet, even with our $ sitting in our bank waiting haha.

But anyway...good luck and remember to get a good real estate agent that can help you.

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Posted by jillyb97

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Posted by lexi1890

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Posted by MrsHtobe

You will need atleast 10% to put down (no where will give you less, I don't think) and money leftover for closing costs.

We went to bethpage federal credit union and they gave us the pre-approval so we could start making offers.

---

Now some of the banks are showing to need only 3% of the cost for downpayment...most people can't afford the 10% anymore. I sure as hell know we can't come up with 25-35k. Thats nuts!

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Hate to be a downer with all of this, but if banks are taking low down payments, it isn't going to help us get out of the situation the economy is in now...I'm sure that played a part in the credit / economical crisis we are having now...People don't put enough down, and then in the end, still don't have the $$$ to pay the mortgage.

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I'm sure that's true for a number of people, but there are a lot of people who can easily afford the mortgage, have decent-to-good credit, a good job----they just don't have $60,00 sitting in the bank for a down payment. Part of why the economy is crumbling is that unqualified people were given mortgages for houses they could never afford and the banks weren't really checking their ability to pay. People were given adjustable rate mortgages which caused their mortgage payments to double or triple from what they were paying.

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Posted by skinny237

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Posted by jillyb97

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Posted by lexi1890

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Posted by MrsHtobe

You will need atleast 10% to put down (no where will give you less, I don't think) and money leftover for closing costs.

We went to bethpage federal credit union and they gave us the pre-approval so we could start making offers.

---

Now some of the banks are showing to need only 3% of the cost for downpayment...most people can't afford the 10% anymore. I sure as hell know we can't come up with 25-35k. Thats nuts!

---

Hate to be a downer with all of this, but if banks are taking low down payments, it isn't going to help us get out of the situation the economy is in now...I'm sure that played a part in the credit / economical crisis we are having now...People don't put enough down, and then in the end, still don't have the $$$ to pay the mortgage.

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I'm sure that's true for a number of people, but there are a lot of people who can easily afford the mortgage, have decent-to-good credit, a good job----they just don't have $60,00 sitting in the bank for a down payment. Part of why the economy is crumbling is that unqualified people were given mortgages for houses they could never afford and the banks weren't really checking their ability to pay. People were given adjustable rate mortgages which caused their mortgage payments to double or triple from what they were paying.

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Oh absolutely...I was just trying to say that I didn't think that everywhere would let you put 3% down...

But you just brought up something else that shocked me when we were buying our house...DH and I both have incredibly good credit, but when we went for our mortgage, the bank hardly asked for any proof...they basically asked us what our salaries were, and took our word for it...It amazed me, since like you said, that's exactly what got them into this problem...and we went for our mortgage after everything started going bad...

I wish houses grew on trees

I would say to try and put 10% down. But if you put 20% down you can get a better rate (and if you have good credit).

I would go online and find a mortgage calculator (you can google them). It will let you type in the price of the house, down payment, taxes, etc and will tell you how much your mortgage will be. Dont forget about closing fees, inspections, home owners insurance, etc. Plus you may need a padding of money for furniture or any other changes you want to make. Hope that helps!

We are going thru this process now. We were just told that we can do it with 3.5% down.
We have that plus the money for closing and then also will still have a cushion. We are also hoping to closed before the deadline on the 7500 tax credit.

Actually we are going to view our first home tonight. I am very nervous.

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Posted by jillyb97

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Posted by Future Mulligan

we've been told we can get a loan with as little as 3% down but that is in florida - we are going to try for the full 20% though - it s-u-c-k-s though b/c we have the 20% but that is about it in our savings right now so that means no money for repairs or furniture so we have to figure out how we want to do it....im hoping by the time we would close we could save a few thousand more so we can do the 20% and still have money to throw around....i cant imagine doing it up here when 20% down is like 80k

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Well, as for furniture, so many places are offering good financing deals right now...many have 0 payments for as long as a year...We've recently bought a ton of furniture, and some of the deals are just incredible...

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that is VERY true - but DH and i like to pay cash for everything - DH really only uses credit cards for big purchases (for the purpose of establishing credit) and then he pays it off on the first bill....b/c of this we have no credit card debt and we only like to buy things that we have money for 'now' - we don't want to get into any trouble down the road...we just think its safer to have the money and use it instead of hoping we'll have it when its time to make the payment i think our parents ruined credit cards for us - on both sides they have insane debt and its scary! so every since we moved in together thats how we have done things and its been working hahahaha.....but we might have to do that if we have no money

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Posted by enewedding

We are going thru this process now. We were just told that we can do it with 3.5% down.
We have that plus the money for closing and then also will still have a cushion. We are also hoping to closed before the deadline on the 7500 tax credit.

Actually we are going to view our first home tonight. I am very nervous.

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have fun!

Just a hypothetical situation.

If someone works off the books and therefore has no salary history that can be verified, how would this work with the mortgage process? (Assuming the other person in this hypothetical relationship has a good job.)

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Posted by skinny237

Just a hypothetical situation.

If someone works off the books and therefore has no salary history that can be verified, how would this work with the mortgage process? (Assuming the other person in this hypothetical relationship has a good job.)

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Do they pay taxes on their money?

Also you can still tell them you make money even if you dont have proof. Different situation: but I remember when I went for a car loan a few years ago I told them my main salary as well as a part time (cash job) and they made up an average of how much I make. If you have money in the bank etc and can provide bank statements, that may help too. Not sure though.

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Posted by Future Mulligan

that is VERY true - but DH and i like to pay cash for everything - DH really only uses credit cards for big purchases (for the purpose of establishing credit) and then he pays it off on the first bill....b/c of this we have no credit card debt and we only like to buy things that we have money for 'now' - we don't want to get into any trouble down the road...we just think its safer to have the money and use it instead of hoping we'll have it when its time to make the payment i think our parents ruined credit cards for us - on both sides they have insane debt and its scary! so every since we moved in together thats how we have done things and its been working hahahaha.....but we might have to do that if we have no money

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Completely agree - and I'm the same way (think my parents did too!)...I really don't love using credit cards at all...like I said, we've been buying a ton of new furniture though, and while we do have the money to pay for it all, we also know that in a year we'll have to too, so we can use the extra cash right now for other things (like the pool we want to put in...) and not build up any interest on the other things.

It's just another option...for some people it's good, some it's not...I would never put myself in a position of not knowing for sure that we could pay it off...I've seen that go bad for way too many people!