How long before the great rates are gone?

[921]

We're wanting to buy a house in about a year. Right now our FICO scores are all in the 690-730 range. Income around $100k. 1 car payment. I still have a few old baddies, and my wife has 1 old (6 years) repo reporting. In a year, our reports will be completely clean, and I will have paid off our last car and will have zero debt.

 

If we wait, are we going to miss the great interest rates. We will be using a VA loan to buy our first house.

 

Should we go ahead and get a preapproval and get the ball rolling? Or wait until everything is perfect around this time next year?

Edited July 15, 2012 by 921

[breeze]

I would say this is a great time to buy, if you want a house. It's hard to predict what will happen next, except assume things will get more expensive, and allow for that. Having costs go down is unusual.

[Brian B The Loan Professor]

We're wanting to buy a house in about a year. Right now our FICO scores are all in the 690-730 range. Income around $100k. 1 car payment. I still have a few old baddies, and my wife has 1 old (6 years) repo reporting. In a year, our reports will be completely clean, and I will have paid off our last car and will have zero debt.

 

If we wait, are we going to miss the great interest rates. We will be using a VA loan to buy our first house.

 

Should we go ahead and get a preapproval and get the ball rolling? Or wait until everything is perfect around this time next year?

If you are paying rent now you are paying someone elses mortgage - and if you can continue to pay off debt with a house payment there is no reason to wait - no telling what will happen in a year - prices may come up rates likely will considering there isnt much room to go down -

 

You sound like you should be fine -

B

[luckydriver]

just a year or 2 ago werent we saying rates have nowhere to go but up?

[921]

Well, we hate the place we are renting right now. And rents are RIDICULOUS right now. Houses that would sell for $120k are renting for $1200+ a month here. I can buy a $250k house and pay around $1200, so it just doesn't make sense to rent anymore. We know where we want to live for the long term future.

 

I just finished my mortgage app with Navy Federal. Super nervous. This is our first house, and it's a scary process.

[Brian B The Loan Professor]

Well, we hate the place we are renting right now. And rents are RIDICULOUS right now. Houses that would sell for $120k are renting for $1200+ a month here. I can buy a $250k house and pay around $1200, so it just doesn't make sense to rent anymore. We know where we want to live for the long term future.

 

I just finished my mortgage app with Navy Federal. Super nervous. This is our first house, and it's a scary process.

$1200 wont include all costs maybe the Principal and Interest but you still have taxes Insurance and PMI in most cases

B

[921]

Well, we hate the place we are renting right now. And rents are RIDICULOUS right now. Houses that would sell for $120k are renting for $1200+ a month here. I can buy a $250k house and pay around $1200, so it just doesn't make sense to rent anymore. We know where we want to live for the long term future.

 

I just finished my mortgage app with Navy Federal. Super nervous. This is our first house, and it's a scary process.

$1200 wont include all costs maybe the Principal and Interest but you still have taxes Insurance and PMI in most cases

B

Yeah, I wasn't including taxes and insurance. I won't have any PMI as I'll be using a VA loan. I'm hoping to find what we want in the $160k to $200k range.