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I know that there is no real opportunity to correct a lease, but I want to be able at all times so that when nearly time for me and my wife for our house that we be clear enough our apartment. Does anyone have any suggestions on how long we are of the day, we bid down until the day when we should all offer?

4 Thoughts on Want to buy a house, but not rent to Mars?
  1. Reply
    Biggie @ Arbor Mortgage
    April 9, 2013 at 6:59 pm

    30 days should be fine. Make sure you have a down payment of at least 3% to put down on the home.

    Good luck!

  2. Reply
    Gem
    April 9, 2013 at 7:37 pm

    No one can answer that.

    Home sales, on distressed (foreclosed) properties are grinding very slowly, if at all right now. Banks aren’t offering mortgages, the federal government is broke and everything is in turmoil. I was told by a realtor that she has had two sales, that took so long, that the value of the house dropped and the mortgage company would no longer approve the mortgage.

    You have time. Most leases allow for a month to month renewal after the first year. And many landlords would rather have a good paying tenant stay, than kick them out because they don’t have a whole year lease.

    One thing to ask yourself, is do you have sterling credit and a large down payment? The days of easy lending are over for now, if not forever.

    Good luck.

  3. Reply
    Dizzy_Lizzy
    April 9, 2013 at 8:12 pm

    Talk to your landlord now to see what options you would have after your lease ends. It’s impossible to know if it will take you 3 weeks or 3 months to find the house that you want.

    Of course, the bigger question is whether or not you’ll be able to get a loan at all. With the current limited availability of credit, even people who were considered well qualified 6 or 12 months ago now can’t get loan.

    I suggest applying for a loan around the 1st of February since pre-approvals are usually valid for 60 days. If you want to apply sooner, just make sure you have the funds to cover both a mortgage & your rent. I started house hunting three months before my lease expired, and found THE house within a couple of weeks. I closed with two months left to go on my lease and since the fee to get out of it was equal to two months rent, I was in the same boat whether I canceled it or not. It was nice to have time to clean & paint the house before moving though.

    In the meantime, get your free credit reports from AnnualCreditReport.com to make sure that you don’t have any old debts that need to be cleared and that there isn’t any inaccurate info that you need to dispute. And save, save, save. A down payment is no longer optional and some loan programs expect you to have 10% down.

  4. Reply
    RM
    April 9, 2013 at 9:09 pm

    This all depends on your realtor, mortgage broker, and lender. If you’re applying for a government loan (VA, FHA) it could take 90-120 days to close on it. If you’re going through a traditional lender (Wells Fargo, Taylor Bean) you could close in as little as two weeks.

    I would wait until you’re fully approved and have a closing date set to terminate your lease. If you have a nice landlord, discuss with them your options. You can never ever set a timeframe on buying a house because you just never know what will come up, especially until the home inspection is completed. You may find out that there’s mold damage in the crawl space beneath the house that makes it unsafe but the sellers won’t fix it (can cost up to 15K to get that remedied)… in that case you’d have to walk away from the contract.

    Generally 90% of people have a smooth loan process, but I work in the mortgage industry and there is that 10% of loans that is just a nightmare for us and for the borrowers.

    Typically 30-45 days will do it from signing the purchase contract to closing, but can take up to 3-4 months dependent on several factors including what lender you use, how picky the sellers are, what your assets are like, what your credit score is like, what your debt ratio is, etc, etc.

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