My husband and I are both legally disabled. We want to buy a house but have maxed out our credit cards in orde?

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maxed out our credit cards the past year in order to pay high rent and utilities. Wher should we apply fpr a home loan first?

6 comments to My husband and I are both legally disabled. We want to buy a house but have maxed out our credit cards in orde?

  • wizjp  says:

    Your bank or credit union.

  • Go with the flow  says:

    You need a down payment for a house.
    You have no savings.
    And maxed out credit cards are seriously destroying your credit score.
    Your income is not enough to support a mortgage.
    Banks do not make mortgages for less than 50 grand.

    Go to a library and start reading books on personal finances and buying a home.
    Look for books from authors such as
    Dave Ramsey and Suze Orman.

  • glenn  says:

    You will need to find a way to pay your credit cards way down, and save some money for down payment and closing costs. Find someone to help you move to a lower rent situation.

  • loanmasterone  says:

    Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some benefit to you, good luck

    “FIGHT ON”

  • Amy  says:

    Honestly, good luck.

    My husband and I are also trying to become first time home buyers and jsut about every single bank we’ve talked to has said that our scores need to be at least 620, 680 is better. We’re pretty close to that, which is good considering a few years ago our credit was HORRIBLE. But, we’ve really worked hard to get it back on track.

    My advice to you -- try a couple local banks. If they say no, which they may, they can tell you what’s holding you up. Most likely, it’d be your credit. Then, work on it. My husband and I applied to 3 banks. 2 said no within 2-3 days but this last once -- its been 3 weeks and still nothing! We’ve decided if they say no too that we’ll wait at least 6 months, keep paying our current bills on time and hopefully see our scores increase even more.

    Good luck

  • Classy Granny  says:

    You need to talk with a credit counsler, You won’t be able to get a loan with credit cards maxed out. Work at reducing debt and raising credit scores

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