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Getting married... Looking to buy a house.
Okay, so I am getting married in 2 months! We have been looking into renting a place, but we found a house that is in foreclosure for practically nothing. It is a starter house which is what we need. I don't plan on having any kids so this place would be perfect for both of us. It had a hugh fenced in back yard which is perfect for my puppy!
PROBLEM: Thing is we both relocated jobs to be closer to home. We really don't have any bills other than I have a car payment for ony $189 a month. So bills aren't a problem. The only thing that I will probably have a problem with is the tax returns and my pay stubs (I'm self employed and my income varies.) I pay my phone by the year, as well as I've got my car paid up til next April 13. Not sure how hard it will be to buy a house with us relocating to new jobs back in May...
Thoughts?
Re: Getting married... Looking to buy a house.
I'm unclear on what you're asking. Do you want our opinion on whether or not buying this house is a good idea?
If you both love the house and the finances work out, then go for it. Will you have an emergency fund for about 6 months still after purchasing the home? Will you have money for unexpected repairs, as well as the stuff you need when you first buy a house (furniture, window treatments, home insurance, taxes on the house, lawn appliances, etc)? If so, and you both like the house and are able to get a mortgage, then go for it.
I'm not quite sure what I would rather do. I think it would be cheaper to buy a house than to rent. I am looking finance wise paying a $200-300 on a house (They want 27500, I plan to make an offer soon.) I would own is better than paying $500-700 to rent a place that I will never own. (Common sense says to buy, but I don't know how hard it will be to buy a house.)
Like I said, the house is a foreclosure. I'm not sure how long it has been vacant. There will have to be a few things done to it like painting, but other than that I think it is a nice small place to live.
I'm not sure about how hard it will be to get the loan - since we both relocated jobs.
Any advice on what we need to do or go from here?
With a foreclosure there is little chance of getting any loan program than a conventional. Other low down payment loans will require things to be fixed before funding the loan. If the roof is in tatters or there is mold, for instance, a bank will generally not fund the loan. The repairs would be added on to the purchase price.
This is how it has been for a few foreclosure homes I've been working on for a few clients this year as a realtor.
Better to check with the bank before you make any further steps.
Even peeling paint can be a flag for some loan programs.
Best of luck!
If I am understanding your question correctly, you want to know if you will have a problem getting a mortgage loan because you both recently relocated and you are self-employed with a variuable income. Correct? If that is what you are asking, I would say that getting a loan may be more challenging than usual. The only way to really know is to go meet with 2-3 mortgage lenders, be totally upfront with the facts, and see what they say. There are so many factors that contribute to the decision, so it's really hard for anyone on the internet to offer you reasonably good advice on this question.
This is what I was going to say. Is my true mortgage (IE, the amount I am paying just in interest+principal) cheaper or the equivalent to renting? Yes. Is what I pay overall for interest, principal, PMI, homeowner's insurance, gas, electric, water, trash removal, taxes, and upkeep/repairs cheaper? No, not by a long shot.