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First time home buyer

I am curnetly looking to purchase my first home. I will soon be recieving a lump some of money to put down 20%. should I wait till the money is in the bank befor looking for a preapproval or start the process now. I would like to move on the purchase this summer if possible. Also I have a current car loan should i pay that off as well to help with credit rating. current mid range 694 high of 735 10 years same job. all my past old bad credit is clean now with about a year of all positive payments ect. by edwats_765_873 from Nashville, Tennessee. Jun 5th 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

You should probably get with a loan officer now and get pre approved... your credit scores and job are sufficient to qualify, but by getting with a qualified loan officer, he can put together several loan scenarios and show you what to expect.. You don't necessarily have to put 20% down if you don't want to... but he can show you all your options.. so contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 5th 2012
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Ralph Richard Guertin (ralph@absolutelowrates.com)
#136 ranked lender in Florida - 796 contributions

SOunds like you are in good postion to go either conventional or FHA...if you can put 20% down I would go Conventional to avoid the PMI

Jun 5th 2012
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Nancy J Releford (nancyreleford)
#1 ranked lender in Tennessee - 231 contributions

I would wait until you have the funds & we can establish receipt of the funds and track the money. Every Lender wants to know where large sums of money come from and all funds have to be verified. How much is owed on the car loan? How many open lines of credit do you have? Lenders usually want to see at least 3 trade lines open & current within the last 12-24 months.

Jun 5th 2012
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Linda Wintersteen (Linda123)
#62 ranked lender in Arizona - 1,256 contributions

Looks like you are on the right path!! I do have a few loans that will allow less down, it all depends on your trade lines, and it will be without the mortgage insurance . Email at yourloanpartnerforlife@live.com , if you have a current credit report, and/ or call me at 602-330-1598 Linda I can do loans in your state..

Jun 5th 2012
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jdfk;alf sddkfjlkf (afjalskdflkasdfl)
#17 ranked lender in Tennessee - 16 contributions

You can go ahead and start the process now. You would just need to provide documentation where the 20% down payment came from. It's always good to be pre-approved before house hunting with your agent and having that pre-approval letter in writing when making an offer gives you more of an advantage. Paying off a car loan is not necessarily going to raise your credit score. I've been helping people with credit scores for over 12 years and the best way to raise your scores is by paying credit cards down - not to a zero balance...... I know it sounds odd but it's true. Hope this information helps.

Jun 5th 2012
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jdfk;alf sddkfjlkf (afjalskdflkasdfl)
#17 ranked lender in Tennessee - 16 contributions

I see your in Nashville........ my office is in Brentwood, TN - would love to help you! (615) 727-5593

Jun 5th 2012
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Jonathan Rhode (jrhode)
#183 ranked lender in California - 130 contributions

If you want to look as solid as possible to a prospective lender I recommend that you do a few things. First thing is to season the funds you will be receiving for 60 days. What I mean by that is once you receive the money you will want to put them into a savings account.The first statement will show the deposit and then the second one will show the average balance with the large sum of money. Also, by putting the funds into a savings there will be much less activity on the account then a checking account would have. This will save you having to source large deposits. Secondly, I would consider paying off the car loan if it will not take to much of your funds. By paying off an installment debt your scores should move up at least 20 points. Also, by paying off the car you will improve your DTI (debt to income) and this will help you to qualify for more money.

Jun 5th 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,244 contributions

You can go ahead and get a preapproval now. If you are putting the full 20% down you do have to source the money (a paper trail of where the money came from). You do not have to season the money if you are putting down a 20% down payment. If you are doing less than a 20% down payment then the money will need to be sourced and seasoned (keep the money in one of your accounts for 60 days before you sign a contract on a home) because you will need a minimum of 5% of your own funds if you put down less than 20% and the banks only go back 60 days on your accounts. You will need to make sure you do not put any cash deposits in the account you plan to use, all funds must have a paper trail or the bank can choose to not let you use that account and deny your loan. If you would like to know more guidelines and info to help make your purchase a smooth one, please give us a call. 201-962-3555 All the best, Michelle

Jun 5th 2012
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 1,963 contributions

You need to meet with a local Mortgage Professional NOW, before you receive the funds. They will be able to guide you through the process to make sure the documentation that will be required can be obtained by you as the money is received. Also, because you indicated that you have had some previous credit issues, it is important to have your credit profile reviewed so any fixes that need to be made can be started now. This will help make sure your approval goes as smooth as possible. I recommend a local Mortgage Banker/Broker, rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. Check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Jun 5th 2012
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