I am looking into getting a loan with 2 cosigners,and was wondering if anyone had any expreience with this? I have never applied for a loan,and do not want to get in on a bad one. Any certain loan companies that I should be looking at that have a really good reputation? And help would great.

Since you asked....

If you need cosigners, then you're in no position to get a loan.

Wait until you're in a better financial position before getting a home loan.

When you do buy a house, make sure you have no other debt, make sure you have 3-6 months of living expenses in a savings account, make sure you have at least 20% down, make sure you get a 15 year fixed rate mortgage, and make sure that your mortgage payment is no more thank 25% of your take home pay.

If you don't meet all of those criteria, then you're not ready to buy a house.

EmeraldSkies said:

truefunksoldier said:

I don't meet any of those criteria, and yet I'm buying one this year. And I'm confident in my ability to do so.

I would agree not to buy with cosigners, though. Wait until you can do it on your own or with a spouse/partner.

Well, all I can say is good luck. Because without meeting them, if you run into a patch of bad luck it's going to get ugly very quickly!

CarrieMpls said:

truefunksoldier said:

truefunksoldier said:

That criteria alone means only the exceptionally wealthy should be buying a home. Purchasing a house for a modest $125,000 would necessitate a take home pay of over $4000 a month.

CarrieMpls said:

You have the math wrong on that.

125,000 home - 20% downpayment = 100,000 mortgage
15 year fixed 100,000 mortgage at 7% = 898.83 / month

truefunksoldier said:

Whoops. You're right. But it's close enough. They'd need a take home income of about $3600 a month. That still falls into the wealthy category!

CarrieMpls said:

That's about 50K take home. I wouldn't consider that wealthy.

truefunksoldier said:

I must have a LOT higher taxes than you. There's no way a single person who made $50,000 in Minnesota would have that as a take-home pay. Not to mention what goes into retirement fund/401k, medical insurance, etc.

CarrieMpls said:

No, I meant 50K take home...I'm guessing 70K?

I wouldn't consider 70K "wealthy" for one person, definitely not for 2 incomes.

CarrieMpls said:

And I just saw you said $50,000 take home. That, to me, is quite wealthy.

truefunksoldier said:

We bought a home with about a month's savings nestled away....but that SWEET first time homebuyers tax credit was enough to nestle away for a rainy day. Don't spend it all.
[Edited 6/22/09 19:25pm]

CarrieMpls said:

You think making 70K is quite wealthy? That's a husband and wife each making 35K, or one person making 70K.

I'd say that's middle class, but I wouldn't say wealthy.

Regardless, if someone is making less than 70K they certainly can't afford a 125,000 house.

I'm buying a house, too. I would not do it with co-signers but do whatever is best for you. I hope that you have a very excellent relationship with your co-owners in case things go bad and in this economy, things go bad.

I do not have 6 months of income saved, nor am I putting down 20%. I'm getting my home through a short sale through an FHA loan with 3% down.

I am sure there are a lot of nice condos or town homes for less than 125 in MPLS? I'm under the assumption that the cost of living in the midwest in relation to the coasts is still really cheap in comparison?

I have a girlfriend in MPLS that purchased a condo for 80,000. She rents it to a nursing student. It's a sweet little spot. When she lived there I really liked that condo. Ultimate bachelorette pad.

Just random thought for Carrie.....

truefunksoldier said:

Hell yes, they can! I make less than that and have been approved for far more. I've been paying rent and my bills by myself for 16 years, I think I can figure out what I can and can't fit into my budget.

And bad luck is bad luck. You're out on the street whether it's rent or a mortgage you can't pay. That's really no different.

KatSkrizzle said:

I'm doing just fine in my search. I'm still deciding on a house or a condo. A condo will allow me to live in a nicer area, closer to where I'm used to living, etc. but I have a house I really like in a different neighborhood I'm considering also. I'm still looking...

truefunksoldier said:

If you can pay 1000 bucks rent, you can afford a house.

Just because people get approved for more doesn't mean that they can afford it.

That's the kind of thinking that started the entire financial crisis to begin with.

CarrieMpls said:

Vendetta1 said:

Exactly!

Vendetta1 said:

eh, I'm not there yet but it doesn't seem hard at all.

truefunksoldier said:

I actually told them the top of MY budget of what I wanted to pay monthly and that's what they put my approval through for. It went through with ease and I was told I could have qualified for much higher. It's not hard to do math and figure out what you can and can't afford.

heybaby said:

It's not. People just have to be smart about it.

Regardless, EmeraldSkies asked for opinions, so I shared mine.

CarrieMpls said:

truefunksoldier said:

What started it was greedy predatory lenders.

I've had a mortgage since 2000.

The only thing I can say is your mortgage payment is only the beginning of things you need to factor in when purchasing a home.

Think: window dressings, tools, lawn equipment, termite/pest control/ security system, maintenance fees (electrician/plumbing, stuff you can't do yourself), etc. etc.

Then factor in credit card, and school loan debt. Maybe a car payment? Insurance? Don't just think about the mortgage payment.

I had a roomate 7 of the 10 years I owned a house, and my take home pay was pretty good.

Wow..this too was an interesting thread...I would agree with everyone else, if you need a co-signer, you might want to wait. But...if you feel you can handle everything, and you have done your homework, then I wish you good luck. Owning a home is wonderful, I built mine 5 yrs ago and I love the fact I no longer pay rent etc...it's nice to put money into something that is yours.

Best wishes on your future ownership!

Vendetta1 said:

It takes 2 to tango.

Imago said:

These are the things that almost made me talk myself out of a house.

But I figure my rent is going to drop almost 700 bucks a month so i'll save that money for projects. Plus, I intend on learning how to do some projects myself.