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My credit score is really low 588 and I have been pre- approved for a home and I may need a co-signer which I have a good one but I’m really concerned becasue I need a house asap I found one for 250,000 and its the perfect home for us but how could I get the payments under 1,000 a month? please let me know how this works because I’m being told my payments will be about 1,400 a month and thats too high right now even though it includes property and state tax…
Is there something else I could do, like get another loan on that loan??
I live in califorina you cant get a home for under 150,0000 in my area at all and a 150,000 home here would be a fixer upper…
ooppss 150,000

5 Thoughts on I am in the process of buying and home and I really need some questions answerd..please help!?
  1. Reply
    Just M
    October 26, 2011 at 4:51 am

    Why dont you get a home for $ 100,000 because your payment would be cheaper …….you will end up being house poor …… wont be able to save money or take a vacation or do anything ………….

    you could pay more downpayment I guess .

    $ 1400 a month for a home is expensive ……..I know people who pays more and they’re struggling because the ecomony , gas and food prices , etccc ………Unless you make over $ 100,000 a year or more ……..

  2. Reply
    October 26, 2011 at 5:35 am

    What state tax? Only property tax. You don’t have to include property tax and pay it twice a year. Getting two loans makes no difference. I’m surprised you guys even qualify for that much if making payments would be a struggle. You can do it with 20% down payment ($ 50k). Or get an interest only loan, which i don’t recommend at all. My advice is to not buy more than you can afford. Look for a $ 180k home. If not then start saving. It’s never too late to buy.

  3. Reply
    October 26, 2011 at 6:14 am

    in all reality, i dont think that you will have the option to have your payment under $ 1000 a month. and since you dont have the best credit and there for your rate will be a bit higher. there are loans out there that some mtg. brokers might try to sell to you such as the pick a payment option however, i would not advise you to do that. it is more for someone out there looking to invest and turnaround and sell the house or have it as an investment property. i would try to find a home that is more in your price range for where you want your payment. and you can always try to put more money down also.

  4. Reply
    October 26, 2011 at 6:35 am

    The other answers are correct to have just a mortgage payment not including taxes and insurance your purchase would have to be under 150,000, even less when you include taxes and insurance. 1400 actually sounds like a too low amount to me with such poor credit your interest rate should be over 7% and with that on a 30 yr mortgage your payment would be over 1600 a month not counting taxes and insurance, make sure your loan officer isn’t giving you a 40 yr mortgage or adjustable rate. It sounds like something sketchy is going on.

  5. Reply
    October 26, 2011 at 7:33 am

    You are not in the process of buying a home-you are in the process of losing one. The loan you are describing is a negative amortization loan, which means that every month the balance on your loan gets higher. All you are doing is digging a hole for yourself (and the poor sap that co-signs for a borrower with a 588 credit score). I hate to rain on your parade, but YOU CANNOT AFFORD THIS HOUSE! Do yourself a big favor and rent for a while longer, work on improving your credit score, and find a way to increase your income. Good luck.

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