What is the best way to get a mortgage?

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Please no scammers answer this question. I’ve gotten answers before trying to get me to contact some random person I’m quite sure is not a reputable mortgage broker.

I am renting right now, have been renting for three years, and have never been late on a payment. I pay all my utilities on time, cell phone, electric, etc. I am a full time law student, and also work, but I just started a job since the ABA won’t allow first year students to work.

Long story short, I make about $ 2500/month, but I am a 1099 independent contractor. However, I receive pay stubs from my job, so I have verifiable income history. I’m looking to get out of my apartment because my landlord has had a history of not paying water and sewer, not paying his mortgage, etc, and now he wants to move to a month to month lease and sell the building. I would have a hard time finding someplace that would allow me to have three dogs(labs), so I would like to buy a house.

I’m looking at something very inexpensive, like $ 50,000 or less, something I can do a little work to, that would be a house I can live in for like 5 years until I graduate law school and can pay down my student loans.

What do I need to do to get a mortgage? I’ve never filed taxes before, and won’t be doing so until 2009 because I’ve been a student. I’ve read about programs that would allow me to get a letter from my landlord and utility companies stating that I’ve made my payments on time and use that to help me get a loan, but basically I’m at a loss.

My parents and grandparents are willing to cosign, but my parents have crappy credit and a good income, and my grandmother has little income and pristine credit, so I don’t know if either one of them would help me.

Any ideas?

  1. Reply
    April 30, 2011 at 12:43 am

    You need to have an established credit record with good credit to get a mortgage. A couple of credit cards, a car loan and at least two years at the same job will show credit worthiness. Being self-employed does not take you out of the running but you really need a few years of 1040’s to show that your income is stable.
    Also, the size of your down payment will come into play. 20% should be your minimum.

  2. Reply
    April 30, 2011 at 1:13 am

    talk to a local realtor and ask for a recommendation

  3. Reply
    April 30, 2011 at 1:33 am

    Billionaire real-estate investor Donald Trump says that banks are “laughing” at loan applicants who come in for a mortgage — no matter how good their credit rating is — even though the federal government has completely recapitalized the financial industry.

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