First of all - it would be silly to have dad co-sign. Co-signing a house means he also co-owns it. If, for some reason, you can't make the payments - he is liable just as much as you. And when you sell - he is entitled to half the profits - even if you made ALL the payments. Not to mention that even if he has a good credit score and makes all payments on time - that doesn't mean he can can get yet another loan/mortgage if he has a few out there now. Credit is not unlimited - even with a good score and history.
In the second place - somebody needs to have the down payment. And closing costs. Do you - or dad - have that extra money laying around?
Third, fourth, fifth place - and beyond - is I wonder if you have thought this through enough. There is more to home ownership than just the mortgage. You have to pay ALL utilities - which includes electric, gas, water, sewer, trash pickup. These are generally more in a house than an apartment. As well as your regular bills such as cell phone, internet, car insurance, car repairs (oil changes, tires) or major car repairs (air conditioning, starters, brakes). You have to pay annual taxes which - depending on house and area - can be $3000 per year and up. You have to have home owners insurance which can run $1000 per year or better. You also are responsible for any appliances that go bad. Do you have enough savings to buy a new frig or stove or furnace or washer or whatever else that crashes when you least expect it. Not to mention groceries, clothing, personal items, entertainment money. As well as things to keep home clean - dish soap, laundry soap, etc. Those things can add up to a tidy sum. And, I'm sure, you will want enough furniture to put in the rooms. As well as towels, draperies and all those things most people don't think of.
And you need to do all the yardwork - mowing, snow removal if you have snow, raking leaves in the fall and disposing of properly which means bagging up and taking to a disposal site. Keeping lawn watered and weeded as neighbors will not be happy with an unkept yard in the neighborhood. And you may need to paint outside or put on new siding at some point. These things can be hired out - but that is another expense.
At 18 - I would think you are not ready for all this as I suspect you have a young person's social life and want time and money for that. Houses can be a time and money pit.
Suggestion from here is if you want to live by yourself - if you aren't already - is get an apartment. Pay the rent. Usually, water, heat and trash is included in the rent. "Pretend" it's a house you own. Pay the rent - put money aside and pretend you are paying the other utilities - pretend the frig is fritzed and you have to buy a new one this month. Spend a couple of hours every other Saturday outside - pretending you are mowing the yard and can't go off with friends. If you live in a snowy area - get up an hour early in the winter on a few days to have time to shovel driveway before you go to work. And shovel again when you get home because snow plow went by and left snow in the driveway.
The best thing you can do at 18 - is keep working, save your money. Think about buying a house several years from now. In the meantime - pretend for a few months - see if you can actually put these house expenses away. As if you were really paying them. See how that goes. As well as "doing the time". The time it takes to mow, rake, shovel, paint and all that. I would bet that you will find it's not as easy as you think it will be. And, if for some reason - you can accomplish the saving of the "pretend" you are just that much further along.
Not until you make more money I would think you can't really afford much on 30K a year but interest rates are down and you have a steady work history so go for it. You must be good with money to have saved the down payment and closing cost already.
Sorry, but I'm not going to sit here and try to figure out what your annual income is.
Rule of thumb is you can afford a mortgage of three times your pretax earnings. The best rates are with excellent credit and twenty percent down.
For a house costing $175k, you would need to put down $35k and make $47k/year for a $140k mortgage.
In applying for an being approved for a mortgage loan there is no such thing as a co-signer. Anyone on a mortgage loan is a co-borrower. In this position, if the primary borrower is not able to pay the monthly mortgage for any reason, your mortgage lender would require this person to pay the monthly mortgage.
You might would want to attempt to be apply for an be approved for a mortgage loan base on your own credit and financial means.
Failure of you not to qualify using your own credit and financial, you may always add a co-borrower. Since you are not married a separate mortgage application would be used for each borrower.
Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, you can find one in your local telephone book.
Make sure this mortgage broker or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of your monthly income earned would be used in a formula to determine what is called a debt ratio. This debt ratio would determine the amount a mortgage lender would allow you to borrow to purchase a house. This debt ration should normally not exceed 39%.
When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Make sure, before you get your pre-approval letter, you and your mortgage broker go over all your options, as to all the mortgage programs you qualify for, the interest rate, monthly payments. This will allow you to make an intelligent decision.
Once you have your pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
You should select the loan that best suit your financial situation at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.
What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.
So select the best option for you and your financial situation.
You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.
I hope this has been of some benefit to you, good luck
"FIGHT ON"
do you have 20% for a down payment? This is the biggest way to get approved is is you have a solid downpayment. This shows you can earn and save money and are a good risk for them to lend to.
Your credit score may be low, because you don't have the years history they like. It will go up woth time and good payments.
Lack of credit history is going to be a major issue. You are also looking to borrow WAY more than you qualify for. You make about $35K a year with OT You can only borrow about $105K. You'd need $70K to put down.
you will be required to have money for a down payment, money that you have not borrowed from someone else
you would be wise to get a pre approved loan which will indicate the price of a home they will lend the money to buy, it might not be a $175K home, it might be less than that but that is what you would qualify to buy
Just try you might be approved since you good credit score.
Do you have around $35,000 saved for a down payment, and do you make around $45,000 a year or more? If yes to both, they might, with your dad cosigning.
get multi family house, other two apt's rent count toward your income. talk to real estate agent and mortgage brokers
I know I can't get a house by myself of course becuase I'm 18 but my credit score is fair I have a car loan I've been making payments on never had a late payment always payed more than I was supposed to. I had a job for about 3 years steady making 15 a hour a lot of overtime and they will say and write a letter for me. I have usaa and my dad will cosighn with me he has a good credit score however he has taken out a lot of loans becuase he's had his own business since 1996 and has been very successful and never makes a late payment. The house is 175k dof you think the bank will appapprove me
Just take advice from the good real estate agents, they will help you for sure.
as long as your dad will cosign I don't see why not.
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