First time home buyer with questions before applying

Ok, I'm trying to determine if i should apply or just rent. I have worked for over 5 years and I worked consistently at the same. I am now making 22k a year part time and i graduated last year. In January I became self employed and I make about 4000+ every two weeks. My bank statements show the income and has been consistent for over 3 months now. I'm looking to purchase my first home and I was planning on applying in the summer when my self-employment reaches 6 months and bring up my savings. Right now I have 10k, but I'm trying to save upto 20k for a downpayment. I would like to purchase a house between 200,000 and 280,000. I live in california as well. I'm just wondering if I should apply and see what happens or should i just rent a place for another year then apply? I'm still working my w-2 job, but i now have self employment income that will be taxed next year. I guess the question is pretty simple, do you think the bank would personally look at the loan and make a loan to loan evaluation on the situation, or will it be automatically denied? I also have good credit, above 700. I'm currently waiting to move, but If my chances are slim to none I'll just move out now and go rent somewhere. It just ****s because rent costs more than the mortgage, tax, bills combined. Has anyone ever been in a similar situation if so how did that work out? by sbuste_370_865 from Anaheim, California. Apr 25th 2012 Reply