We're two years away from (possibly) buying a home. In the event we do I need to strategize now for this possibility. Only debt we have is a mortgage on a rental property that is paid off by our renters monthly. Plan is to sell this next year so that we will have down payment money available for the (possible) home purchase, and also because it's a condo in a high property tax area where neither the condo board HOA assessments or local property taxes know no ceiling. I have great credit. Haven't checked my wife's but it's probably average (credit cards and mortgage not in her name). Never used a Doc loan, will be 8 years out of residency in 2 years, and will be expecting a good pay bump. Want a 15 or 20 year loan. Not interested in paying PMI or fees associated with 0 down VA loans. So a few questions:
1. Will Doc loans be available to us?
2. If the Doc loan is not available or if the traditional loan is optimal, my understanding is that they will look at past income, and will also look at both our credit scores, both of which will limit the loan amount or possibly raise the interest rate. I am not sure if the proceeds from the condo sale will cover 20% down. Given these facts would you save additional cash now (and how much), bank on the Doc loan as a backup, or do something else? I haven't ruled out renting for a year.
3. Best strategies for improving my wife's credit for #2, other than the obvious (credit card in her name)? Get her name on the mortgage as well? Also, how long does it take to have one's credit improve after, say, getting a credit card in their name and paying it off monthly?
Thanks!
1. Will Doc loans be available to us?
2. If the Doc loan is not available or if the traditional loan is optimal, my understanding is that they will look at past income, and will also look at both our credit scores, both of which will limit the loan amount or possibly raise the interest rate. I am not sure if the proceeds from the condo sale will cover 20% down. Given these facts would you save additional cash now (and how much), bank on the Doc loan as a backup, or do something else? I haven't ruled out renting for a year.
3. Best strategies for improving my wife's credit for #2, other than the obvious (credit card in her name)? Get her name on the mortgage as well? Also, how long does it take to have one's credit improve after, say, getting a credit card in their name and paying it off monthly?
Thanks!
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