Advice on Buying a House; Getting Approved For A Mortgage?

[Harry M 12]

Just wanted to see if anyone had any advice for buying a house in the US for the first time.

 

I've been over here for a little over a year, got a job 4 months ago. At the moment I'm the main breadwinner as my wife switched to part time and has gone back to school. She has good credit, I'm working on mine still but it would still be considered good. As an added bonus I have savings plus inheritance I had been using to keep me alive before I got a job. Our current rent payments have been and would be more than what our potential mortgage repayments would be.

 

Suppose my question is: has anyone had any trouble getting approved this early on? We have been told it would be difficult and have got preapproval through USAA (her father was a veteran) but that isn't set in stone. We found a house and put an offer using our preapproval letter, but under our realtor's suggestion we're shopping around for a better rate.

 

How likely will be approved elsewhere?

[Russ&Caro 1,549]

Sounds like you're doing everything right...

Working on your credit rating - check

Get a realtor - check

Get a preapproval letter - check

Shop around to get a better loan rate - check

 

You might look around for a non-profit home buying organization in your state or city who assist first time or low wage buyers. Here in NM there's one called Homewise that was absolutely great for my wife and I. We took an all day Saturday class from them that covered home buying, soup to nuts. They also provided us with the best financing rate in the entire state with only 2% down payment and no mortgage insurance.

 

In the end, my wife, the beneficiary, was not on the loan as her credit rating wasn't up to snuff. We bought 1 year, almost to the date, of her arrival in the US. Different financial institutions will have different qualifications. That's why it's key to shop around and don't be discouraged if one org rejects your application as another one probably will accept it. Good luck.

[debbiedoo 2,339]

sounds as though your biggest hurdle may be income, depending on how much you earn.

 

i dont really see any issue, but im also not a mortgage professional. Speak to a couple of them and find out more.

[Harry M 12]

We've had our realtor, who is my wife's high school friend, pull some strings and set us up with a mortgage lender that has been working tooth and claw to get us approved. More than what USAA did. We have a good feeling, but this would be our first home for both of us so lots having to learn. We couldn't qualify for a FHA, but he's trying to get us on a regular one for 4% interest and only need to put 5% down, probably the best we can do for Northern Kentucky.

[TBoneTX 45,361]

Sometimes, it's WHO you know.  Congratulations, with hopes for your success.

[millefleur 5,046]

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