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Thanks for reading. Nervous first time buyers here.
We were pre-approved and were originally shopping around 350-400k range for homes. Despite what you hear about Atlanta, unless you want to live in the burbs or in a fixer-upper intown. Not too many choices in single family homes inside the city for middle class people.
After searching for 8 months, we are now under contract at a house for $425k and are applying for a $250k home loan.
Because I am paying my portion of the house in the form of down payment, fiancee is only one taking out loan.
He has over 740+ credit score, 13 years same employer, $60k salary, one car loan for $14,000/350 a month and one cc $8,000/100 a month.
We are still nervous about getting the loan despite pre-approval and large down, due to his salary and debts.
Any insight you can provide would be much appreciated.
At $60k, a conservative loan amount would be around $200k. With the car of $350 a month, how is he pre-approved for $250k? More than likely, they're going to need your income also. If you're getting married, and you're putting a substantial down payment, don't you want your name on the title and such to protect your investment?
At $60k, a conservative loan amount would be around $200k. With the car of $350 a month, how is he pre-approved for $250k? More than likely, they're going to need your income also. If you're getting married, and you're putting a substantial down payment, don't you want your name on the title and such to protect your investment?
LO said that I can be on title without being on loan. I don't want to be on the loan since I am paying my portion. If I have to, I can contribute half of price just didn't want to and trying to put down just 40% for now. So, the conservative estimate is $200k? Thanks for your input!
At $60k, a conservative loan amount would be around $200k. With the car of $350 a month, how is he pre-approved for $250k? More than likely, they're going to need your income also. If you're getting married, and you're putting a substantial down payment, don't you want your name on the title and such to protect your investment?
Need more than just being on title to protect her equity and investment.
Depending on interest rate and term there isn't enough information to cast doubt that he can get approved for a $250k loan. Property taxes are a huge unknown left out.
Quote:
Originally Posted by lookngrl
LO said that I can be on title without being on loan. I don't want to be on the loan since I am paying my portion. If I have to, I can contribute half of price just didn't want to and trying to put down just 40% for now. So, the conservative estimate is $200k? Thanks for your input!
This is a question for your LO, they will have the most information to answer this question. Do you know what the LO or underwriter calculated his DTI to be and at what rate?
Because I am paying my portion of the house in the form of down payment, fiancee is only one taking out loan.
I think it would be wise for you to consult with a real estate attorney to protect your interests. What if the unthinkable happens? (meaning something that YOU don't think will happen, but has happened to many other couples--both married and unmarried)
Be prepared to gift that down payment to him. There are steps to take and you are "waiving" all your rights to those funds by the way. No way to sue later if things don't work out. I don't want to be a naysayer, but just letting you know that you can't just contribute that way. It has to be in a gift form since you aren't going to be on the loan. I may be wrong though, but we went through it recently and that's what the gift letter stated. (waiving all rights to the gift)
And yes while you are on the title but that's not quite good enough as you would only be entitled to half of the equity in the home. So half of the 40% down.
Thanks for reading. Nervous first time buyers here.
We were pre-approved and were originally shopping around 350-400k range for homes. Despite what you hear about Atlanta, unless you want to live in the burbs or in a fixer-upper intown. Not too many choices in single family homes inside the city for middle class people.
After searching for 8 months, we are now under contract at a house for $425k and are applying for a $250k home loan.
Because I am paying my portion of the house in the form of down payment, fiancee is only one taking out loan.
He has over 740+ credit score, 13 years same employer, $60k salary, one car loan for $14,000/350 a month and one cc $8,000/100 a month.
We are still nervous about getting the loan despite pre-approval and large down, due to his salary and debts.
Any insight you can provide would be much appreciated.
So 425k-250k=175k.....your portion? You call it even if he has to shell out 75k more in risk than you are?
Thanks for reading. Nervous first time buyers here.
We were pre-approved and were originally shopping around 350-400k range for homes. Despite what you hear about Atlanta, unless you want to live in the burbs or in a fixer-upper intown. Not too many choices in single family homes inside the city for middle class people.
After searching for 8 months, we are now under contract at a house for $425k and are applying for a $250k home loan.
Because I am paying my portion of the house in the form of down payment, fiancee is only one taking out loan.
He has over 740+ credit score, 13 years same employer, $60k salary, one car loan for $14,000/350 a month and one cc $8,000/100 a month.
We are still nervous about getting the loan despite pre-approval and large down, due to his salary and debts.
Any insight you can provide would be much appreciated.
Before you do anything, I think you should consult a RE Lawyer. Like it was mentioned above, you are taking a big risk and your fiancee not so much. I have this friend that did this with her boyfirend years ago but they put it in a contract what would happen if they needed to sell or if they break up, etc.
LO said that I can be on title without being on loan. I don't want to be on the loan since I am paying my portion. If I have to, I can contribute half of price just didn't want to and trying to put down just 40% for now. So, the conservative estimate is $200k? Thanks for your input!
Yeah but if he stops paying the mortgage the bank forecloses. I guess you might be able to retain some of your equity but not sure I would take this approach.
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