Buying A Home
emenz47
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
In A Bind
New to this whole process! Fianc? and I are getting married in May. We were planning on saving for a year before we started looking into houses since rift now a lot of the money is goon toward the wedding. I recently attended a first time home buyers seminar (you can never have too much info!) that was put on by my work (I work for a bank). Our loan officer was telling me there could be programs to help with the down payment and I get help with closing and origination fees since I am an employee. My fianc? also has investments we could also consider using to help with some of (not all) the down payment. The Loan officer said we should meet with her for a prequalification since rates are so low right now. I want to meet with her to find out what we could afford with our current incomes but I am just not sure abou starting the process of buying a whole year and a half earlier than anticipated what with the upfront costs of inspections and earnest money and all of that awesome stuff. Any advice?
Re: In A Bind
BEFORE you even think of buying a house have a good emergency fund in place (6+ month's expenses), moving costs, start up costs, repair/renovations, decorating/furniture/appliances/ yard items, ladders, tools etc.
Keep your housing expenses: mortgage+PMI (if you do not put down 20%)+ taxes+ insurance+utilities to no more than 25-28% of your TAKEHOME pay.
Rates will be low until 2014 since the Fed has stated it will keep the Prime rate where it is until then. Do NOT be pressured into buying before you are financially ready. And yes, lenders will still lend more than is reasonably financially comfortable.
A prequalification is a short term, non binding piece of paper . Some realtors like to see the clients they are working with are serious buyers that will be able to actually purchase a home. Many do not ask for it at all.
Meanwhile pay off/down credit card debt, check your credit report and take care of any negatives and save, save, save. Wait until you are married.
If those investments are in retirement accounts - do NOT touch them!
Good luck.
RED FLAG on the bolded: The banker/lender would not be telling you what you can AFFORD. You and your DH need to figure that out on your own. The number she gives you is what you can be approved for loan-wise. It only accounts for your incomes and what you owe on your credit reports. It does not account for any other expenses you have, or will have, as a result of owning a home. You need a budget BEFORE you meet with a lender.