M.E. asks from Algonquin, IL on March 11, 2009
Need Advice and Help with Mortgage Information
My fiance and I are planning on moving to Arizona after our wedding. We would like to buy a house and we found a couple ranging from 100k to 130k. The only problem that we currently have is we don't know who to talk to about getting approved for a loan/motgage. As you can tell we have never owned a house and new to this lol.
My fiance filed bankruptcy 2 years ago, I am repaying a student loan. Our credit is not good. Is there someone who helps people that have not so good credit get into a house?
I have gone onto mortgage calculators on the web, looking at 130k house @ 7% interest and the payments would be $870.00/month and we can afford that. I would like to get a lower interest, but I dought that would happen with our credit history.
Also, if my fiance and I can not get approved for a loan could his grandparents get us a loan in their name, and would we be able to transfer it to our name after a year?
How much does it cost to find out if someone is able to get a loan for a house mortgage?
D.K. answers from Chicago on March 12, 2009
From experience if your credit is not good forget the 7% interest. It would be much higher and make for a much higher payment.
A.G. answers from Chicago on March 12, 2009
Give Juan Loya a call.
he will walk you through all yoru questions.
And if there is a program out there that you qualify for he will find it.
You can tell him that I refered you. He has worked with me on all my mortgages.
Please be aware that owning a house does not mean just to pay the mortgage, there are property taxes, home insurance, sometimes PMI, etc.
T.C. answers from Chicago on March 12, 2009
I'm going to echo Theresa on this one. You may not want to hear it, but you may want to rent until you get your student loans paid off. Put the money you would have used on the house into your loans to pay them off at an accelerated rate and you'll be ready in no time.
Remember, you'll likely pay more that 7% interest. Even if you don't, you have to include the closing costs, realtor fees, inspection fees, property taxes, neighborhood association fees if any, increased utilities, and have money available to fix things that go wrong with the house.
I'm sorry, I don't mean to dash your hopes, I just hear about so many people with good intentions that have something happen to them and get in over their heads. Just take all these things into consideration first so you can make an informed final decision. :)
M.S. answers from Chicago on March 12, 2009
Congrats on your upcoming wedding. I have a friend that had bankruptcy years ago, and she's still paying high interest- I think 15% range for her home.
I bought a house young, right after marriage... If I could do it all over again and was in your situation, here's what I'd consider...
Pay off all your debts first then have a 6+ mo. cushion in savings. We had to charge so many necessitites, furniture etc... still paying for the stuff 11 yr. later! There is nothing wrong with renting. You could even find a job in the rental community and get 1/2 off rent, allowing you to save more for your home.
Another thing, what if AZ didn't work out? It's hard to sell out there. It will take a long time for them to get through the housing crisis. A few years from now, you'll still be able to get a great deal. This way, you can be secure in a job, know for sure that is where you want to live. Once you move, you may even find an neighborhood/area you like better. And, doing it on your own will be such a huge accomplishment! Check out daveramsey.com. He has awesome financial books & tips!
Good luck to you!
M.H. answers from Chicago on March 12, 2009
My husband is a loan officer and does mortgages for a living. Give hima call. His name is Nick, and his number is ###-###-#### x183. He'd be able to give you more information and let you know what you can and can't do. There is no cost to start the approval process. I do know some banks do charge, but he doesn't. Good luck to you on the wedding and move!
T.S. answers from Chicago on March 12, 2009
I think the market is tough right now. Don't forget if you don't have 20% down, you will have to pay private mortgage insurance (I think ranges from 50 to maybe 80 bucks a month), your taxes (and I don't know what Arizona taxes are, but could also be anywhere from 300 a month to a grand a month or more depending on taxes) and then your insurance (which can be another 100 bucks a month). So your 870 is not the final cost per month you will pay it would more likely be closer to 1100 or so depending on real estate taxes. I would check out things as well, because if you are buying in AZ you may want to work with a local broker there. I would ask your own bank just for the heck of it to see. Good luck!
S.E. answers from Chicago on March 11, 2009
Some of the things I am about to say has nothing to do with you personally. I do not know you or your situation but I do something about mortgages because my husband is a carpentry and we have had a few mortgages in our lives and right now is a very bad time for getting a mortgage.
Do not rely at all on the on-line information. Until you fill out some forms there is no way they can tell what you are eligible for.
I would go talk to a mortgage broker. They would be able to tell you if you are eligible for anything.
You can try your bank but it would be very doubtful because of what is going on withe the US banking systems right now. With a bankruptcy and your outstanding loans I do not think you will be eligible with a bank loan. I think you would need to go somewhere that specializes in acquiring mortgages and that would be a Mortgage Broker.
As far as transferring a loan from one name to another. That would be a no. No lending institution that I know of would just transfer a loan from one name to another. You would have to qualify for the loan.
What you might be able to do is get the grandparents to cosign the mortgage that way the bank would be guaranteed their money. If you were to default on the loan they would have his grandparents to pay it off. The one thing with doing that is that if they are elderly the banks would want to hold some of his grandparents assets in an escrow of some kind so if they were to pass away they would have that money to fall back on just in case you were to default on the loan. (Not that you ever would but the banks need to cover them selves)
Do you or your husband qualify for a VA loan??
That is a much easier loan to get but you have to be a veteran.
I can give you a name of a mortgage broker if you would like. She is out of Dundee I think. She use to work at our local bank and moved to a broker.