First time home buyer loan (wny) what can I do to get approved?
I will be graduating in may from college (Nursing) with approx 35,000 debt(gov loans not private). I have a job lined up (50,000 gross/year) for when I graduate. I would like to buy a house within the year (2 family income property houses are cheap in my area and rent is quite high, live in one rent out the other) Looking to buy a two family under 65,000. Is this a realistic goal. And if so what steps can I take to get approved for a first time home buyer loan. I have one credit card (800.00 limit with a my bank that i have been with for 7 years) and no other loans but student loans with haven't gone into repayment yet. Any advice/ tips?
- loanmasteroneLv 77 years agoFavorite Answer
Most lenders would require two years of w-2 and federal income tax forms in order to apply for and be approved for a mortgage loan.
Most lenders are required by mortgage guidelines for you to have been employed in the same career field for a minimum of you two years. If had you had job while in college this might solve a portion of this requirement, even though the job might not be in the same career field.
Your idea of the purchase of an income producing property is on the right track. This type investment with you residing in one of the units would make this an owner occupied property thus getting the same interest rate as a single family residence, based on our credit report and credit score.
Mortgage lenders would not use any potential rent as income toward your mortgage application. Normally, in order, for rent to be considered as income, you would be required to have collected the rent for a two year period and filed an income tax claiming this rent on your federal income tax for the same period.
You might consider seeking a mortgage loan with a mortgage lender that is authorized to do FHA mortgage loans. The requirements in obtaining a mortgage loan are not as strict as obtaining a conventional mortgage loan. Also the down payment would be around 3.5% there is a FHA mortgage loan that require less of a down payment. In your initial contact with your mortgage loan officer, you might inquire at that time if you are qualified for a lower down payment.
Your student loans would be counted against your debt ratio, even if they are in a deferred status.. This debt ratio should not exceed 37%. From time to time FHA might change the requirements of student loans. This is another item you would want to discuss with your FHA mortgage loan officer.
This debt ration would be a determining factor in how much a mortgage lender would allow you to borrow to purchase your house.
I hope this has been of some benefit to you, good luck.
- Go with the flowLv 77 years ago
Call a bank and make an appointment.
Note that htey will use an average of your last 2 years of steady income.
On credit cards. Make sure you are paying in full each month. No games.
Keep usage very low to be qualify. Think a tank or two of gas a month.
Oh I wish you could wait a while.
If they could use your 50K income (2 solid years) you could get something much nicer.
Could you use that time to save up a 20% down payment so you don't have to pay that nasty PMI? This can cost thousands extra a year. Not tax deductible, and does not go towards interest or principal.
- 7 years ago
Hello! The first thing you should do is talk to a mortgage broker or your bank. Tell them that you are looking into buying a home and you would like to get your pre-approval. In order to make an offer on a house you will need to be pre-approved for the right amount. My mortgage broker was very helpful in my search for a new home. He told me exactly what I would need to submit to him. This required a lot of faxing, emailing, and paper work but it is all documents that you should have. Identification, proof of employment, etc. If you have looked around and have seen duplexes for 65,000 and under, then I say go for it. If you are asking if this is realistic with your type of income, then yes, it is. I don't know where you live so I'm not sure what the market is like there.
Good luck!Source(s): Bought my first house April 2012
- M WLv 77 years ago
It doesn't matter if you don't have to pay on the student loans yet, you still owe that money and you will have to start paying at some point in time.
You will need more credit history to prove that you make payments on time and 2 years on the job with positive continued employment. You will also need more downpayment on a two family than a single family.
It's too soon for you to think about buying property.
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- RahlLv 47 years ago
If you have collateral use that as your last resort option (cars, furniture, etc).
They will most likely want to see a paycheck. Unless you already have good credit, you have to have something to show in case you default and they will want to take your stuff. They want to sell houses right now, so don't let them walk on you. They need YOU to buy the house. If you can afford it, get an attorney or someone who is good at working with real estate.
You should also do some research to see if you can find some incentives and grants for first time home buyers, or people in your income range, etc.
I'm no expert, but that is my advice.
- Beverly SLv 77 years ago
We like to see 3 tradelines & a rental history. Also 2 year job, but if you can show you've been in school for the last 2 years (transcripts) and you have a job (with at least one months earnings showing on your paystub that will work. We will have to count your student loans in your debt to income ratios once you've graduated even though you don't start to repay right away.. Hope this helps.Source(s): Mortgage lender 27 years.
- 7 years ago
YOu need downpayment, probably 20% since this may be considered an investment property. You also need a couple years at your job.
Not all that likely.