Soon to be First time home buyer.

[DFBrews]

I think it is time to buy in the next few months. I am starting my research and have a price range. Is there a good compiled list of what i need to have done/do before i start talking to a lender? i am bouncing around sights and seeing different things.

[ChunkyMonkey]

Tripod rule... income, asset, credit. This has to support each other. Make sure you have good disposable income (30% dti on the new house payment ideally), w/ the disposable income then obviously you will have saving (minimum asset of the down payment amount plus 2 month reserve), and finally good credit history. FHA for an example requires 2 good credit lines plus 12 month rental history.

This is just a general guideline. Disclosure.. I am a licensed banker.

[DFBrews]

Tripod rule... income, asset, credit. This has to support each other. Make sure you have good disposable income (30% dti on the new house payment ideally), w/ the disposable income then obviously you will have saving (minimum asset of the down payment amount plus 2 month reserve), and finally good credit history. FHA for an example requires 2 good credit lines plus 12 month rental history.

This is just a general guideline. Disclosure.. I am a licensed banker.

I dont know those terms yet will look into them.

credit is the interesting one. i have a 625 ish score. but the person i am buying the house with has pristine credit. I make more than her though does that effect anything?

[ChunkyMonkey]

I dont know those terms yet will look into them.

credit is the interesting one. i have a 625 ish score. but the person i am buying the house with has pristine credit. I make more than her though does that effect anything?

640 is the minimum for FHA lender overlay. Lender won't use your income/credit unless you are at 640 mid score. The good news is to raise 20-40 points within a month is real easy and free. PM you w/ some links.

[funkymonkey1111]

the person i am buying the house with has pristine credit.

unless that person is a spouse or female family member walk away.

the lender will tell you what they need. usually w-2 for the last year, last bank statement, verification of income stuff.

also, before you pull the trigger, make sure you have a good inspection from a licensed engineer instead of just someone calling themselves a "home inspector." make sure you get a radon test, too, and if its an old shitbox in the neighborhood you're talking about an asbestos test.

[Danimal]

There are a lot of things that you need to figure out before you even look at a house. First they are going to calculate your limit of financing using a standard debt to income calculation. I would talk with a mortgage broker to get this information. From what I saw when I bought my house last year all reputable lenders came up with about the same limit, then I just got to pick and choose based on the rate and finance charges.

Then when you know what you have available to you for financing, you will need to look into what YOU WANT to be spending on it each month. When you have that number nailed down then you have a starting point and you have a clear savings goal. In my experience having a clear number makes me save more than I otherwise would have.

You can not close on a property until you meet the finance terms so that is the best place to start. It will just be a bunch of headache and heartache to watch properties come and go while you get that stuff in line. Then the other thing to remember is, location, location, location. The nicest mansion in the ghetto is a miserable place to live. When comparing houses pay close attention to the neighborhood and surrounding areas. It is too easy to walk into a flipped house in a crappy neighborhood and get all excited because the person flipping the house knows what they are doing to really polish a turd. Then when you move in someone steals the wheels off of your car. That happened to my buddy when he moved to FL. The house is super nice, but he is the only one on the block that gets a sunburn or speak English, so needless to say he is pretty excited to sell his house already.

I would find someone that you can trust in the housing industry to help you out in the beginning so that you can bring a realistic financial picture into focus. Looking at stuff that you can not afford is a wast of time and it will sway your thinking about the properties that you can.

[Irving]

unless that person is a spouse or female family member walk away.

This. I wouldn't buy a sandwich with a woman I wasn't marrying. I don't have a sister, but I wouldn't buy a sandwich with her if I did.

EDIT: And Radon is total bullshit.

[bside303]

Yeah, your personal compiled list. Your must have's and don't really needs. What type of financing are you doing? FHA, Conventional loan. What area do you want to live in>?

[DFBrews]

Yeah, your personal compiled list. Your must have's and don't really needs. What type of financing are you doing? FHA, Conventional loan. What area do you want to live in>?

Denver. highlands sunnyside area. Have no idea on the mortgage type that would suit me best.

[ChunkyMonkey]

Denver. highlands sunnyside area. Have no idea on the mortgage type that would suit me best.

FHA is 3.5% down w/ 640 mid score, conventional is 3% down w/ 660 mid score (harder requirement imho). You can also qualify for $100 down payment if you purchase FHA/HUD owned homes. hudhomestore.com A good realtor should be able to walk you through these option. We have few realtors on board, mostly down in colorado spring area. I am sure they'll chime in. My spouse is a realtor too.