Boost-Me

Thanks for all the input guys. How hard will it be for me to get pre-approved for a mortgage? I really don't have any (or much) credit in my name right now besides a few utilities bills and a credit card.

SlowTeg

One stipulation I'd add is it depends on what part of the country you're in. Some cities are still quite pricey.

SlowTeg

What's your work history (they require 2+ years I believe), how much do you have for a downpayment (minimum FHA is 3.5%), other assets, etc. That'll all factor into whether you'll get approved for a mortgage.

Boost-Me

I have almost 5 years with the job I work but it's just a small job that I worked while in college. Now that I have a big boy job my work history with them will be short. My budget is around 150-160 and I have 60,000 to put down. I'm single and no kids so I'm not looking for anything "family sized" just something kinda nice that I'll enjoy coming home too.

SlowTeg

Sounds like you're quite responsible if you got that much cash available for a downpayment. Just go into your local bank and talk to them would probably be your best bet. At least they can tell you what their requirements are/etc, and you can go from there. You obviously don't have to use them for a loan or anything (and they won't charge you a dime), but any lender/bank can at least give you an idea of what the reqs will be for getting a loan, like salary reqs, work history, debt/income ratio, etc. Then, it's just a matter of picking a place within your price range. If you haven't had a "big boy job" for too long, that might be a problem (I think they generally like 2 yrs of work history), but they can tell you that.

My only advice is try to go w/ a loan that avoids monthly PMI (although it sounds like you have plenty of cash to avoid that). If you go w/ a loan that has monthly MI payments, I believe you have to pay it for a minimum of 5 years (and it's generally around 1% of the loan balance per year). Obviously, it adds up, and is one of the problems I see w/ the FHA 3.5% down loans. Generally, if you have good credit, and put 10%+ down, you can get away with paying a one time up front PMI of ~1%, and no monthly PMI. Of course, you can always just do 20% down and you don't have to worry about PMI, which is probably your best option. Best of luck.

Boost-Me

How bad will it affect my credit if I apply for pre-approval and I am denied? One of my friends that I've been talking to about this said it would look pretty bad on my credit history if I am denied.

SlowTeg

Not sure.. you can talk with a lender/broker and they should be able to tell you upfront whether they think you'll be denied or approved, based on your credit score, income, debt, etc. Talking to them won't hurt.

TerminatioN

Being denied once isn't a big deal. I doubt it will affect your credit at all. It's when you get denied 3, 4, etc. times that it starts to look bad. If you have any doubts you can talk to someone at your bank and confirm this. They should be happy to answer all credit related questions.

rob-2

The home you live in is not an investment. Sort of sums this all up.

You can fetch 15-24% very easily right on in the market. Your home, will at this rate, keep dropping in value.

We treat any inheritance as 'never earned' money and it goes right into our savings, for retirement.

That's my best advice. Wait a year. Invest it in the market, preferably foreign and act like you never got it.

s.hasan546

wow you can fetch me 15-24%? where do i sign up

don't invest it in the market. imho right now is the best time to invest in real estate depending on the economy. Esp. since you have a large deposit banks will approve you over a lot of other buyers. Nowadays buyers have A LOT of bargaining power. use it to your advantage.

i have a couple of friends who over the past year have made 30-40% returns on real estate investments.