I need help to buy a house. (Atlanta, Snellville: foreclosure, rental)

[John Fahey]

I'm very close to being able to buy a house. I've got a very good credit rating. I know I can get pre-approval from the Bank of America for $65K. I have no debts. I'm a frugal person. I'm looking at several houses in the Snellville area north of Atlanta. The mortgage/taxes would actually be less than I'm paying now for where I live (I've been paying my landlord's mortgage, taxes, and all utilities for the last 18 months and I'm getting disgusted he's not looking for a job!!). I've been saving slowly BUT at the beginning of each month when my Social Security check arrives my bank account rises only to just above $5,000 and I've calculated I'll need $7,000 for a closing. I could take a $2,000 personal loan from Capital One (with payments I could easily afford) but I worry that would cause problems in getting that pre-approval from Bank of America. Does anyone know how a $2,000 personal loan would affect me getting pre-approval?
It's such a catch22 situation. It would take me another 8 to 12 months to save another $2,000 BUT I don't have family or friends that could advance me the money until after I close on the house...when I could then immediately take out a personal loan to pay them back. Of course I could stop paying my landlord's bills but then when foreclosure of his house happens I'd still need a place to live for several months and I've got a lot of stuff. Is there anyone out there who could work with me on a creative solution to my dilemna? Is there any gay person (like myself) who has a suggestion to help me?
I'm intelligent, active, a positive person, 66 yrs of age, and (see my web site) look forward to the future.
Sean

[flyonpa]

I Hope the landlord is not 'charging' you rent, He's getting the tax breaks, and you are paying his costs for him. As for getting the extra 2K, can you get a part time/2nd job you should be able to make that in a few months. Dont forget to include the maintance costs, repairs, Home Owner Ins Etc into your buying budget, I dont know snellvillem, but a 55-65K house is going to need repairs,

Good luck

[John Fahey]

Hi flyonpa,
My 'landlord' is a straight friend of 30 years. He lives downstairs and I live upstairs. He went into emotional collapse after losing his medical license over two years ago and despite psychiatric help and zero income he's not looking for a job and is hostile to everyone including me. I took over all expenses including food and unexpected expenses over eighteen months ago but he is not showing me any gratitude nor any change in his behaviour. I consider what I've paid to be my 'good samaritan' instincts and don't expect any return.
I have calculated all additional costs...I'm paying them here as it is...and as far as getting a job that's difficult on account of difficulty walking (femoral artery plaque) and living in a place like Copperhill where there is no work available.

[pellur]

I am little skeptic about this but the loan officer expects to see enough money in your bank account before closing atleast for the past couple of months. So if you get a Capital One loan today and want to originate a loan on Aug 1st, it wouldn't work.

Again don't count me on this but this is what I was told during my last loan.

[John Fahey]

Yes I do know that. I'm looking ahead and if it's sensible I would take the Capital One loan then wait three months until getting pre-approval. My question still remains. How would the fact of that loan (with no other debts and over $7K credit on two credit cards) affect my pre-approval application?

[Eresh]

I am no mortgage expert, but I think taking out a loan three months before trying for pre-approval would not look good from the lender's point of view. Any checks on your credit report for 12 months prior gives a negative to your credit score. Plus, due to the current situation with housing and the economy, they have really stepped up the criteria for mortgages. I think a better solution would be for you to move to another rental in your area - one that has a smaller monthly expense then what you currently pay - and try to save as much as you can that way. And/or pick up a temporary second job.

[noah]

Wait 8 months until you have saved the money. Your on a fixed income, no need to bring on additional debt. Having a home will bring you plenty of additional expenses over time, another thing to consider.

[floyd242]

You could negotiate a price with the seller for them to pay the closing costs. If you get an FHA loan all you'll have to pay is the 3.5% down and homeowners insurance. This is pretty common and something I did when I bought my house.