STYLETHREAD -- LET'S TALK SHOP!

Kari · Dooney & Bourke

Home Buying

Mandy · Kate Spade

i actually just found my third house and was going to post about it. have you talked to a lender? do you have an idea of price range/what you want payments to be? i would figure that out first. after that, if you know the area you want to live in i would just start looking at everything. go to open houses and look online. get an idea of what you can get for what price, you'll start to see whats a good deal and what isn't and it will help you get a better idea of what you want. if you don't know what area you want to live in i would just start driving around different neighborhoods to get an idea of prices and the area. i would do a lot of looking on my own before using a realtor, but im funny about that. i have found all three of my homes without a realtor.

pm me if you have any questions.

Kari · Dooney & Bourke

I do know which neighborhoods i want. Our main issue is that I do not yet have a job lined up for after I graduate. Once I know that...we'll be able to make a more concrete decision about our price range/payment range. Until then, I am just looking around to see what is out there and what to expect.

Any mortgage lenders or bankers out there...I have some mortgage questions too?

JoceyBaby23 · Gucci

First, get pre-approved..

Second, call around and find a real estate agent to represent you. They will do all the work for you so you can concentrate on other things.

I am not a Mortgage broker but I consider myself an expert. I settle on a new home next month so it is all fresh in my head too. What are your questions?

Kari · Dooney & Bourke

JoceyBaby23 wrote:

I am not a Mortgage broker but I consider myself an expert. What are your questions?

We would like to be able to buy a home whenever we find one that we like. However, a realtor told us that until I have a job, we should only use my husband to get pre-approved or whatever because with a part time job, my income is not enough to balance out the amount of debt I have from school that will be added to the equation.

Before people start running our credit, I would like to know if we should proceed with just my husband or wait the 5 or so months it will take for me to start earning an income to start this process? I don't know what to expect regarding how much he will be qualified for on his income alone.

Should I just stop being scared and just go start the process already?

Alegria · Kate Spade

Kari,

Have you gone online to use a bank calculator to help you figure out which way is best? My bank has one that I have used. I like to know things before I start talking to people and submitting paperwork. It's nice to have a semi-idea of where you stand.

Here's the link to the one I use but your should see if your bank website has one too.

http://www.octfcu.org/calculators/java/mortgagequalifier.html

The main page link is http://www.octfcu.org/

They have all sorts of caluculators there. They're under "tools".

Jahni · Dooney & Bourke

please don't leave me...or better yet, take me with you...let's buy a house together...the three of us...and luco...we can make it work...

Kari · Dooney & Bourke

Jahni wrote:

please don't leave me...or better yet, take me with you...let's buy a house together...the three of us...and luco...we can make it work...

Ha Ha...sounds great! If you can keep Luco out of trouble...I don't think I can handle it! And Vivi gets to sleep in my room!!!

JoceyBaby23 · Gucci

Kari wrote:

JoceyBaby23 wrote: I am not a Mortgage broker but I consider myself an expert. What are your questions? We would like to be able to buy a home whenever we find one that we like. However, a realtor told us that until I have a job, we should only use my husband to get pre-approved or whatever because with a part time job, my income is not enough to balance out the amount of debt I have from school that will be added to the equation. Before people start running our credit, I would like to know if we should proceed with just my husband or wait the 5 or so months it will take for me to start earning an income to start this process? I don't know what to expect regarding how much he will be qualified for on his income alone. Should I just stop being scared and just go start the process already?

I think I agree with what you were already told. Your debt to income ratio is HUGE when applying for a mortgage. If you do not make enough to balance out your own debts, you could get approved for a very low amount or none at all.

But keep in mind, if you only apply under your husband name and income.. that means the mortgage company is only expecting your husbands name to be on the house. (If your name being on the house is important to you, then DO NOT only use your hubby's info). Make sense?

I would probably wait until you get a steady income (if I were you). That way you can be approved for a higher amount and you can start paying down your own debt.

(My mortgage company is making my DH pay off one of his larger credit cards before settlement to lower our debt to income ratio.. which I understand is fairly common.)

Kari · Dooney & Bourke

Thanks everyone! I checked out some mortgage calculators...that really helps me understand more.

I think I will definitely wait until my income kicks in and in the meantime I will just work really hard to start paying down debt. This tax refund will sure help with that!

NCshopper · Hermes

FWIW--One thing about mortgage lenders--I think they traditionally will approve you for a lot more than you can actually afford. I have no idea why they do this, but I just don't want you to think "Oh! They approved me for $X, which is what I should spend!"

Kari · Dooney & Bourke

I have heard this...I am trying my best to stay focused on what we can truly comfortably afford...not what I want to be able to afford!

HeatherLynn · Gucci

Kari-

What areas of OKC/Edmond/South OKC, etc are you considering?

Kari · Dooney & Bourke

What areas of OKC/Edmond/South OKC, etc are you considering?

I don't know how well you know or remember Edmond, so this may be too specific, but...

I have a pretty specific area I want to be in. We want to stay in east Edmond...no further West than Boulevard Street. I also want to stay a little north too, no farther south than 33rd Street.

My hubby works at Edmond Medical Center, so we'd like to stay close to that. I want to be close to I-35 since I will most likely be commuting into OKC. I hate the Broadway Extension, so I-35 is a must.

We live in that area now, and I love it...I don't have to leave a 2mile radius for anything (accept the malls and work).

It is VERY hard to find houses I like in our price range there though...everything seems to be that "Dallas" style house with the garage in the front or ranch style.

We are even thinking about farther North around the Waterloo area...my family is in stillwater and it would be closer for them...and my hubby likes to have a little space.

HeatherLynn · Gucci

Kari wrote:

What areas of OKC/Edmond/South OKC, etc are you considering? I don't know how well you know or remember Edmond, so this may be too specific, but... I have a pretty specific area I want to be in. We want to stay in east Edmond...no further West than Boulevard Street. I also want to stay a little north too, no farther south than 33rd Street. My hubby works at Edmond Medical Center, so we'd like to stay close to that. I want to be close to I-35 since I will most likely be commuting into OKC. I hate the Broadway Extension, so I-35 is a must. We live in that area now, and I love it...I don't have to leave a 2mile radius for anything (accept the malls and work). It is VERY hard to find houses I like in our price range there though...everything seems to be that "Dallas" style house with the garage in the front or ranch style. We are even thinking about farther North around the Waterloo area...my family is in stillwater and it would be closer for them...and my hubby likes to have a little space.

There are definitely some nice houses in that area. I know Edmond pretty well (had lots of friends there and my mom works in Edmond). Good luck looking for houses!

Sunshinegirl · Kate Spade

Kari,

I want to bring up a very important point when it comes to home buying. Not only will you be paying the mortgage but you must consider what you taxes and insurance will be on the new property. This can increase your overall monthly payment by as much as $500 or more.

When you are either working with a real estate agent or by yourself, ask them or find out yourself (which is the wisest thing to do) what the newly accessed tax will be based on the current selling price. Lots of times the seller will have a fact sheet stating what the taxes currently are but that amount is based on what they bought it for. I know if i sold my house right now, the newly accessed tax to the new owner would be atleast $3000 a year more than what i bought it for.

Also, call insurance agencies and get quotes from them as well. In Florida, we are literally screwed due to all of the hurricanes. My insurance jumped from $900 a year to over $2000.

These are all things to consider.

Deuce · Dooney & Bourke

Pretty Much evertyhing has been covered her. I would reccommend going to your local city hall and look into programs for firsttime home buyers it could save you some cash.

I work in lending so pm me if you have anymore ? that I can help with.