Home Loans.... What do us propery virgins need to know?

[BadRomance]

Hey guys! DH and I are thinking about buying our first home this fall. What do I need to know to ensure that we qualify for a great pre approved loan so we can start looking at homes in our price range?

We got married about 6 months ago. I work full time as a Receptionist in a small office. I only get paid 20,000 year... but I do get the insurance & benefits.

DH is in the MBA program right now and will graduate in June. He already has a job lined up that will pay him at least 60,000 a year for his salary.

We have little debt. We have a car payment of about $200/month and then we will have some student loans to pay off once he graduates in June. We have credit but not a ton of it.

We will have about a 20,000 down payment come fall.

So what is the main thing lenders look for?

 

[PixieTopaz]

Your husband needs at least 2 years work history to get a FHA loan.

 

[Lisa loves Pooh]

He'll need a letter stating his date of hire and salary. However, if he is presently not employed due to schooling, that may not be enough.

You may be in a bit of a pickle since your DH's work history won't be long at all.

3% required for FHA
10% for conventional
20% to avoid PMI

Another thing to look ahead to is your work plans if you plan to have children. If you do not plan to work and plan kids within the next couple of years--don't use your salary as a basis to purchase the home.

Also--don't forget about closing costs--probably easy to obtain in a buyer's market at the expense of the seller (ours is coverd on our home purchase coming up).....

And the cost of insurance/taxes that get added to your mortgage payment.

I'd honestly perhaps wait to buy a home. Work to pay on your debts--they dont' exclude you from a mortgage, but they do impact the amount of home you can buy.

 

[AKL_Megs]

Your husband needs at least 2 years work history to get a FHA loan.

Yep. They weren't going to process our FHA because I didn't have 2 years, just 1.5. Luckily, our loan person pulled some strings. Our down payment probably helped.