Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What does your debt look like? When I take prequal calls and do ballpark estimates, I tend to keep buyers around 4x their gross income. Looking at what you are seeking, 5x+ your income - that may work with 0 debt. But without picking up a calculator, my eyeball estimate tells me you're pushing the prequal numbers pretty hard.
I have 2 personal loans and 1 car note that will be paid off before I apply. Any credit and store cards I have will be paid down as well. So I guess my dti would be 0? Do you think I could get loan amount of 250k and with the down payment I could perhaps purchase a home in the 260-70ish range?
Last edited by Plentiful1; 01-25-2015 at 09:44 PM..
Download the zillow mortgage app and use the affordability calculator. It says you can afford a home of $200,000. A home, which means your mortgage + down payment. The calculator seems a bit conservative but a good thing to look at.
Also I am not sure if this matters or not but this will not be my first home. I plan on selling the one I am in now. I purchased it in 2006. @BoredRestless thanks but I have tried many mortgage calculators and they have varied. I was hoping to get some expertise from someone experienced in this sort of thing on here. However speaking of calculators the most detailed calculator I have found on how much I can qualify for was on "mortgage professor" site. The guy seems to know his stuff. Does anyone know how accurate his calculator seems to be?
I hope your spouse brings home at least as much as you do, if not more. My wife and I grossed 94k taxable between the two of us (her pay rate is only 7k off mine, but we get all benefits through her work so her taxable is much lower) and we're looking at the 150k range. I'm also in upstate NY, Greece to be exact, so a 150k home with roughly 5600 in taxes with 3.5-5% down is going to be around a 1300-1400/month payment depending on the mortgage type and any sellers concessions added on. You're looking at adding another 800-1000 on to that (depending on the taxes) per month. So you should take a step back and do what I did, which was creating a spreadsheet in Excel with all of your monthly expenditures itemized (car payments, credit cards, utilities, cell phone bills, gas for the cars, insurance, etc.) along with budgeting in maybe $1000 at the least in miscellaneous spending every month (food, clothing, car repairs, home repairs/upgrades, other purchases), and then leaving at least another few hundred as safety padding. In our case, we bring home roughly 5100 a month if not a bit more depending on the month and any OT worked (my wife also brings home a $1400 bonus every quarter, and after all of our monthly expenses plus another $1400 for misc spending we're at around $3400 already spent towards everything else going on in our life. So I've come to the conclusion that we can afford a mortgage of $1400 tops, but trying to get closer to $1300.
Just because you may be able to afford the payment for the house itself because you take home enough money every month doesn't mean you can afford to live in it. If that were the case I'd be looking at $400k+ homes. Unfortunately, the rest of life gets in the way
I ran some very basic numbers. FHA typically will tolerate a 45% total debt ratio. If you have no debt, some lenders may take your housing ratio to 45%, however I would feel uncomfortable pushing anyone that hard. I would put someone with a no debt ratio somewhere around 38%, which puts you in the ballpark in the low 200's. I would consider 40% to 42% if there was a history of carrying a housing payment of at least $1750, or residual savings (money left over after closing) of more than 3 months. This is for a score of 680. Anything below 660, I would back those ratios down by 4% (keep you at a 34% ratio).
While the spouse working should help, the reason why you can't add her is just as concerning.
Of course, your mileage will vary, particularly as the various facts about the loan are revealed.
Regardless of what you qualify for, unless your wife is making $40k+ per year, I'd avoid a house in that price range, especially with NY taxes, unless you don't spend money on anything else in life and will just sit around the house. That being said, I don't think you are going to qualify based on the information given.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
