Seeking advice as a first time homebuyer

Hi Robert, Closing costs will run around 3-4% but you always ask the seller to cover some or all them. You definitely want to raise your scores if you plan on going conventional. With 3% down and a 660 score, you may have a hard time getting an automated underwriting system approval and, if you do, your rate and PMI will be pretty steep. As a lender, I would check to see if you qualify for Fannie Mae's Home Ready program which has lower rate hits and PMI. The other thing I would do is show you the difference between putting 3% and 5% down. | John Burke | Senior Mortgage Banker | Lending in ALL 50 states | www.yourtexasmortgagelender.com|Stride Bank | jburke@stridebank.com | (877)228-9069 | NMLS# 787231 |

Hi, congratulations on wanting to buy your own home. The numbers you provided look like you are good to go today. About the only thing I see is what you've already mentioned, and that is getting your credit score up, as while your score is OK enough today to get a loan, you will be paying a higher interest rate than someone with better scores would. Paying down credit card debt to below 30% of the outstanding balance is your goal. No need to pay down to zero to get that score up. As for closing costs, they are not cheap, and can easily be 3% of the purchase price. Paying cash out of pocket is best, but you can ask the sellers to pay some, and lenders can reduce them by charging a higher interest rate too. Best to talk to your Loan Officer to run your exact numbers. I lend for homes in MN, WI, IA, ND, and SD. Find me at JoeMetzler.com | Cambria Mortgage | NMLS 274132