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Korndogg
04-10-2011, 04:22 PM
I'm kind of stuck with a problem and I'm not too sure what to really do, just looking for a little input.

Ok here's my deal. My lease is up in August. My rent right now is $830 a month with free heat. Our plan was after that to go month to month because we want to move into a house sometime soon and don't want to commit to another year. When we go to month to month, our rent will go up to what I believe will be $890. Now I know for a couple hundred more, I could have a mortgage and be in a house. Well my problem is, I am layed off at the moment and not too sure when I will be going back to work and my fiance works at Froedtert and is optional part time at the moment so even though she works pretty steady, she is not guaranteed hours right now until she gets part time or above. Also we are getting married in September so that also hurts the money situation. I have about $6000 for a down payment right now and after the wedding I imagine we will have more so that shouldn't be a problem.

I guess my issue is what to do. Should we start looking at houses? Should we see what kind of loan we can get right now? We are going to try to go with an FHA. It's just killing me that we will be wasting almost $900 on rent when we could be putting that towards a house.


I appreciate any input.

jbiscuit
04-10-2011, 04:30 PM
First step would be talk to the bank and have them pull credit and get you prequalified for a mortgage and they will be able to tell you what you can afford. As a first time buyer if you have great credit you should qualify for a few different programs...but it will be dependent on your bills, monthly gross income and credit score. I wouldn't waste much time looking at houses until you know what you afford. The FHA program is nice because the downpayment is minimal: 3.5% though it does carry higher fees like the appraisal etc. But I do think you are thinking correctly...don't shell out a ton in rent when you could own. You will get a bunch of cash for the wedding I'm sure so financially u might be in pretty good shape

Korndogg
04-10-2011, 04:33 PM
Thanks! I'm just trying to figure out what to do and when. I didn't know if I should actually go into a bank seeing as I'm laid off right now. However my credit is usually in the mid to high 700's so I wasn't sure how much it matters if I'm laid off right now or not.

Crawlin
04-10-2011, 04:35 PM
Where are you looking?

It's a good idea if you can get into a house, to actually do it.

BUT, remember now all the little extras you'll have to pay for. Water, larger utilities, stupid stuff like hoses and rakes and supplies around the house, small stuff going wrong, etc....

While it is nice to be a homeowner I'm sure, you don't want to go into this being house poor. If by some chance she were to be cut hours, and you were in a position like you are currently, and no income would be there, I'd hate to see you guys destroy credit if you weren't able to pay the mortgage and ruin your chance of getting another house by rushing into it right away.

it sucks to rent and toss away money, however those first years of home ownership, your interest and property taxes and possibly PMI will be larger than your rent payment in alot of cases anyways.

I would go month to month and just look for houses. Might take a couple months to find something you like and by then the position might be different in regards to work.

And ask about the FHA stuff, because sometimes that eliminates certain houses(if memory serves me right). Atleast it did for condos. My girlfriend and I were looking at houses for her, and even with her $40,000 down, and her rent currently is $1000/mo she decided it was in her best interest to keep renting till she could find THE house she wanted.

jbiscuit
04-10-2011, 04:40 PM
If you want to buy a house it's smart to go talk to them at least to see where you stand and what you can afford. Now they might say they won't qualify you for a mortgage without two steady incomes...hard to say. But I would still talk to them and get the facts. Rates are still pretty good right now too so it would be nice if you could infact buy something soon

Korndogg
04-10-2011, 04:56 PM
good info, thanks. Where is a good place to talk to. A regular bank or something like a credit union? I bank at Bank Mutual.

jbiscuit
04-10-2011, 05:05 PM
You can talk to your own bank if you want. Otherwise a mortgage lender. Wisconsin Mortgage, Bank of America Home Loans etc etc

Holeshot
04-10-2011, 05:20 PM
Get pre approved before you do anything
Credit Unions are a much better choice then most banks. You could use a Broker like Accunet and have good luck as well , but remember they sell your mortgage to someone else as will most brokers. We did our loan with them and we pay Chase for our mortgage. Jason and Chris are 100 % right. All the not thought about fees of owning a home need to be factored in. Most likely with FHA loan you will need PMI which can be worked in to your payment but as will Property taxes. Closing cost can be super high and you need to be careful. Have a GOOD inspection by a licensed inspector ( I can't stress this enough ) and stay out of flood plains. I would look at topographical maps of the area you are interested in. Do your homework. Look at the neighborhood and search the property taxes on homes in the area.

Get a good realtor to help you find a home, its stupid not to as the seller pays their fee not you. Make them work for you and shop around. If they are't doing what you want fire em and find a new one. Its a buyers market and if you get approved you can get some super sweet deals.

Lastly be ready to sigh your name a lot at closing LOL

Call me if you want. I can show you my mortgage statement if you want.

05caddyext
04-10-2011, 06:01 PM
I don't understand a single answer here to be perfectly honest. Did anyone happen to catch the part that says he's currently laid off and not too sure when he will be going back to work? Now maybe back in 2006 when banks were handing money to anyone who had a ssn, how could he possibly get a loan while he's laid off? Im not trying to be a jerk, im just asking an honest question. And also, more to answer your question. Why do you pay so much for rent? Can't you move to a place that has much lower rent? And why would you move to a house and pay even higher rent still, if you aren't working? That doesn't make any sense to me. Lastly, I agree, you should get pre-approved if you can. It eliminates you looking at a bunch of houses that you think you can afford, but you can't. Thats a common problem when people start looking. Be prepapred to spend a ton of money on "other stuff" like mentioned. Rakes, shovels, snow blowers, etc. If you are serious about getting a house, start accumulating things like that now. Rakes and shovels aren't going to go bad, just buy em, and let em sit. They aren't expensive, but when you gotta buy $1000 worth of stuff all at once it sucks. Also, when looking at a home, think about small things like sidewalks. Don't get a corner lot unless you plan on shoveling all the time.

Korndogg
04-10-2011, 06:17 PM
I'm not moving to a cheaper place just to move again in 6 months. Where did I say I was going to move to a house and pay higher rent? And I can't just start accumulating things because where am I going to put everything?

nismodave
04-10-2011, 06:29 PM
Not having a job will all but kill your chances to buy a house. When you get working again, start the process.

Korndogg
04-10-2011, 06:31 PM
Ok that's what I figured. I just wanted to get everything I could done because after August, I would like to be out of this place asap....We aren't going to rush into a house we don't like but basically I wanted to be ready if we did find something.

thanks again


also...how do they look at that? obviously its better if we both have a steady job but what if just one of us does? Also...Do I have to be somewhere for a certain amount of time for them to consider?

Holeshot
04-10-2011, 06:35 PM
In sure we all saw that he is currently laid off but are giving him things to think about and look at as a first time home buyer..

Yooformula
04-10-2011, 06:57 PM
since you are currently laid off, I would NOT look into buying a house yet. If indeed you feel that you will get more money after the wedding from gifts, then wait. sure you might save a few bucks on your mortgage but factor in taxes, insurance and MOVE IN EXPENSES and you will be broke fast! There is a very good chance that no matter what you buy, it may be in need of some repair or maintenance. Financial instability early on in a new home purchase makes for a loooong ass 1st year!!

Korndogg
04-10-2011, 07:01 PM
We wouldn't be actually buying a house till after the wedding. Basically the reason for this post was to see if there was anything I could do now to set myself up for when we are ready so I wouldn't have to run around and do everything at once. If that's what I have to do then that's what I have to do no biggie. I most likely will be employed by then also.

73MACH
04-10-2011, 08:44 PM
Not having a job will all but kill your chances to buy a house. When you get working again, start the process.

I 2nd that. If I'm not mistaken when I bought my house, it was required that whatever you do for work, you had to be in that same field for 2 years or I would have had to do a ton more paperwork and proving a bunch of other stuff. They don't want to give out loans to people who weren't stable in their jobs or bouncing from job to job. At least thats what my lender told us. I'm a seasonal worker(concrete) for 10 years and there were still problems with that because I'm laid off for 4-5 months a year, I would imagine they wouldn't even work with you til you have a fulltime job.......and if they are more than willing to work with you anyways, I would be a little skeptical of them then. BTW, my wife is also 0 hours as a phlibotomist and that caused problems also.

Korndogg
04-10-2011, 08:50 PM
Ok thanks. I've been a steamfitter for 5 years so I have been in the same field for a while if that matters. It's just at the slow times we get laid off just like any other construction trade.

03Seville
04-10-2011, 09:54 PM
Not having a job will all but kill your chances to buy a house. When you get working again, start the process.

^^THIS^^
x100000000000

Honestly before you get seriously into the housing process make sure everything else is in line. The difference in the loan between you working and you not working may be the difference between your dream home and something you just settle on.

Take your time and don't rush because in todays world you may be stuck in whatever home you buy for quite a few years whether you truly want to be or not.

pOrk
04-11-2011, 05:20 AM
6000 is a big enough down payment for a 30000 house imo. Keep saving, 20% down means you can eliminate paying PMI and your options really open up as to the type of loan you can get. FHA loans are a joke if you look at any type of house that needs even minor repairs for the most part. I'd also wait till you're working again.