$210K vs. $255K mortgage?

[moneytree]

The #'s above do not reflect closing costs. Our lender said if we bought for $210 instead of $255K, it could save us $400/mo. It's just a general # of course...since we aren't sure on the interest rate.

The Option One loan fell through because of our debt to income ratio. Unfortunately for us, my DH's 2nd pt income can not be factored in because he doesn't get a 1099. But we can make the payments.

But in trying to keep it as low as possible, we are considering another home. We should find out today if we qualify. It's been a long drawn out process where we were told we had our loan and then didn't. All of the foreclosures going on and sub-prime companies going under are hurting us. I was told 2 mos. ago we would have had our loan. So it had not been for our atty. getting fired from the firm and the delay, we probably would be done by now and in our home.

It's frustrating that the lenders aren't looking at the cost of the home right now, but only the mid-score of 611. Is there any way to get it to at least 620 in the next 1-2 mos? Because there is another home option if we do not qualify today. Our lease expires at the end of June, so we have some time.

My DH will have a 2nd job by then (he interviews tonight) that will boost the debt to income ratio so we won't be turned down again. The timing is just crazy! We've had a 2400 sq. ft. house held for us for months now. The broker and realtor have been working w/ us. The bigger house is $255K (our price) and $270K for everyone else. Long story short, my parents bought the same house, which helped the broker work w/ our situation longer. They are really fighting for us here.

But in reality world, saving $400/mo. for 1300 sq. ft ($210K) would be duable. I love both properties and locations. Due to the housing market in this area, we cannot afford to wait.

So if someone out there knows a few tricks on how to get our score up to at least 620 from 611 within 45 days, please let me know! On TrueCredit the high score is 631 and the mid is 618. If only they went by what I see!

come on big roller crappy mortgage...come to us! lol

[SinkingFast]

I'm sorry, but I gotta say this.

With as much trouble as you've had putting this deal together,...........

Hasn't that given you pause to just step back and think,.............

"Maybe all these No's and deals falling thru are telling us now is not the right time to buy a house??"

Been there, done that.

One obstacle after another telling us we shouldn't buy the house. But we bulldozed thru it to get the deal done any way. The house ate us alive. And, boy oh boy, did we pay! Big time!

[BassBoy]

After the last downfall you had with the deal, and now this, I kinda get the feeling you're going to be jumping through hoops in order to make this deal happen. You shouldn't be doing this.

Sure, having your husband get a second income will make the numbers look good, but he'd be putting himself through a lot just for a house. Besides, my opinion is why have a house that you can not enjoy because you're working 12-16 hours a day just to pay for it.

I would recommend that your husband get the second job if he wishes and save that money and when the time is right, you'll get a much better deal.......and......you'll appreciate it more.....because you won't feel as if you may be killing yourself for it.

[moneytree]

It all depends on where you live...

It's a wiser financial investment to buy asap in our area. For 5+ years, we've watched the housing market inflate around here. We profitted BIG TIME on the sale of our last home and just buying a home out here, you instantly get a $10-20K profit on the day you close (appraisal value/market value, vs., what builders are forced to sell at w/ the many sitting homes). We've been throwing $18,400/yr. out the window renting and now have to pay in on our taxes. Enough of that..if we can help it!

If we wait 2 yrs. post BK, then we'd be forced to buy a smaller home for a ridiculous amt. of money. It's just a matter of getting in the door at a deal price, getting that fixed loan (like we were offered), yes, paying more in interest for 24 mos, but then refinancing or keeping the 1st loan rate and then rolling the 2nd loan into the first. But if the market won't let us in, then that's the reality and who knows if we'd ever be able to buy a house.

It hasn't been a lot of hoops, just your average amt. of phone calls that anyone would have to go thru to get a mortgage. No one is 'killing themselves' to make ends meet. It's just now getting our score up 9 pts. and how to accomplish that in 3.5 mos. I know I should be posting that on the credit rebuilding page, but thought I'd add it to my original post.

Just waiting for that phone to ring!

[HHM]

Nothing like seeing someone fall prey to "buyer frenzy".

[SinkingFast]

just buying a home out here, you instantly get a $10-20K profit on the day you close (appraisal value/market value, vs., what builders are forced to sell at w/ the many sitting homes).

That's what's going on in our market. Build, Build, Build!! New housing going up right and left. Existing houses are hard to sell. Builders throw in closing costs, buy down rates, you name it to make a deal.

We have THE highest Foreclosure Rate in the entire country. We're included in the Indianapolis MSA area.

Maybe you should check out your area. Your housing market may not be as hot as you think.

http://www.realtytrac.com/news/press...sReleaseID=112

[BassBoy]

It hasn't been a lot of hoops, just your average amt. of phone calls that anyone would have to go thru to get a mortgage. No one is 'killing themselves' to make ends meet. It's just now getting our score up 9 pts. and how to accomplish that in 3.5 mos. I know I should be posting that on the credit rebuilding page, but thought I'd add it to my original post.

Just waiting for that phone to ring!

I understand what you mean here. You may not be jumping through hoops per say, but getting a home loan shouldn't be so frustrating. You apply, get approved, you close the loan sometime afterwards and then move in. Okay, maybe not that simple, but think back when you purchased your very first home, and didn't have any credit problems, like a BK. A post BK purchase should not be that much more difficult.

[MTG_BANKER_OH]

If you have part time income that is not on your paystubs or a 1099 you shhoudl probably be looking at a bank statment loan where they use every deposit as income. I believe option one raised their requirements for 100% to 620. The easiset thing to do is to pay all of your credit cards down to 0% but i believe you have already done that. I think you may be a little too conerned about the housing market outpricing your ability to buy. The markets have slowed down everywhere and will continue to slow down. We have not even seen the foreclosures hit the market yet. With the subprime lenders having problems with defaults that does not mean these houses have hit the market yet. What was your debt ratio? Some lenders go up to 55% if that helps but I do not recomend someone buying a house with a 55% debt ratio.