Buying First Property Plan

[Hoai T.]

Hi everyone ,

I am new here at Bigger Pocket. Since early October, I have read articles on BP and collect as much knowledge as I could to purchase my first property. The goal is to buy a duplex or triplex to house hack some time soon. 

Here is my situation:

1. Last hard credit pull: September 2017

2. Credit score: around 750 per Credit Karma

3. Cash saved for down payments: $50K. I have been moving this money around a lot among different bank checking/saving accounts for sign up bonus. Currently the money is sitting at 3 different banks: Chase, PNC and Discover. Discover I just opened in 10/31/2017.

4. Job: full time - in $80K range salary.

5. Market: New Jersey- preferably North New Jersey. 

6. Current housing situation: Rent - contract expires August 2018.

I'm aiming to buy the first property in April or May 2018 to avoid signing another year renting contract with my landlord.  I know the looking and buying property process can takes awhile, so I should  start the process soon. However, some people had told me that I should wait at least 6 months since my last hard credit pull and have my down payment stays in each banks at least 3 months before going to banks to get a pre-qualify. 

Any advice on the time frame of when I should start actively looking for a property? also, any advice on where I should start or about the NJ market or anything at all related to real estate, I really appreciate it. I am here to learn, so any advice at all, I'll take like gold.

Thank you so much! 

Hoai

[Matthew Mason]

Hello Hoai...your last hard credit pull has absolutely nothing to do with getting pre-qualed for a mortgage. It can sometimes drop your score a few points but really doesn't have an impact overall.  Mortgage underwriters will look to see where your down payment funds came from. they will look at 60 days / two months of bank statements. Just because you moved funds between banks doesn't really mean anything as long as you have previous bank statements showing the source.

Why wait!? let landlord know what your trying to do and he may let you leave before lease is up if you give 60 days notice! seems you have a great chunk of change and good credit score... Get out there and look for a 2-4 unit and use an FHA. your looking at aprox 5% of purchase price cash to close(depending on closing costs obviously) go grab a 4 unit for 250 (not sure your market) your looking at 20sh down, you will still have 30K for repairs/reserve/ next purchase!