Intimidated and overwhelmed.

Intimidated and overwhelmed.Intimidated and overwhelmed.
asked 4 years ago

To house or not to house…

Financial snapshot:  DH 90% VA disability rating w/ dependents = $ 1995/mth, full-time contract W-2 employee gross monthly = $ 3400
Credit score FAKOs in the mid-to-upper 700s, has one medical collection $ 30 from 2012 that we just discovered, new inquiry this month from switching cell phone providers.

I am employed part-time, grossing $ 1100/mth, no negatives on CR, FAKO also in the mid-to-upper 700s.

Wallet — CC #1:  $ 0 bal/$ 8100 CL, CC#2: $ 0 bal/$ 6500 CL, CC#3: $ 0 bal/$ 5000, Ashley Furniture: $ 2200 bal/$ 8200 CL, Rooms2Go: $ 0 bal/$ 1500CL, DH Discover: $ 1100 bal/$ 2000 CL, my Discover: $ 2000 bal/$ 3500 CL, my Chase: $ 0 bal/$ 1500 CL, Student loan: $ 16K, Car Note bal: $ 11500 owed/$ 25500 orig. financed.

 

We have one DD, and are looking to expand our family within the next year.  DD is approaching kindergarten age, and the public schools we are currently zoned for rank 2/10.  We have lived in our 2BR townhouse rental for 3+ years.  We are in TN.

We have nothing in savings, as we’ve thrown everything at pretty substantial CC balances in the last six months.  We have no down payment to give.  We would like to use a VA loan.  From what I’ve read, I’m hoping for a rate around 3.25%, but nothing higher than 4.00%, and have this building sense of urgency if I want to achieve this, given the interest rate hike speculation.  We have committed the cardinal sin of window shopping first, and have found our “likes” in the $ 285-$ 300K range.  DH is still going through VA process, and while nothing in written in stone, will likely reach 100% disability rating.  This will equate to $ 3400/mth compensation payment, and waived property taxes.

 

I have so many questions…

– is it unwise to apply if there is nothing saved?  It wouldn’t be hard, especially right now, to gather ~ $ 4500 within 3 months.

– are there ways to protect yourself from being bundled up and sold once you’ve got your mortgage?  is there any way to limit who you are sold to (ideally, would like to steer clear of BoA)

– which order to start: lender, realtor, or both?  DH wants to go touring potential houses, but I don’t want to waste anyone’s time if we’re not ready to take the plunge.  Also, for no good reason, I distrust realtors implicitly.  I think it’s anyone who is in commission sales (it’s not personal, of course).  So, I don’t like the notion of choosing a lender based on realtor recommendation.  I concede that I may just not be educated enough.

– other questions to follow, based on replies (if any)

 

Thank you for your time!

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