Can I truly qualify for what my lender is suggesting?

[ocngypz]

Here is an easy calculation using debt to income ratios of 28% and 34%

Monthly gross: $5500

x 28%

Total max monthly mortgage payment $1540 PITI

Monthly gross: $5500

34%

Total max monthly debt payments (mortgage and long term debt) $1870


I do have to ask why you are carrying that credit card balance when you have money in the bank to pay it off.

Personally, I'd rather retire current debt before taking on new.

Home ownership comes with all sorts of surprises costing $$$. I don't know about your area.....but my taxes go up at least 3% a year......and homeowner's goes up every year as well.

[Penelope17]

Thanks so much everyone for the feedback. I sure do appreciate it. My father passed away and did not have life insurance so I met with the funeral home and put his funeral on my card. Will pay this off in no time. I included it because the funeral cost was incurred just as I began the pre-approval process. Just wasn't sure if that negatively affect me. I received a lot of good feedback so will retire my thread. Thanks so much again.

[CSD610]

Originally Posted by Penelope17

Hello. First time home buyer here. In the pre-approval process. The lender told me I could look to buy a home up to 200K. I'm skeptical of this figure and would like to get an opinion from some of the professionals on the forum. Here is my situation:

Income- 66K
Employed FT for last 10 years
Chapter 13 filed 2010, will discharge 8/15
Credit score 680
No late credit card payments
1 credit card with 4K balance
25K for down payment
Student loan pmt 500/mo

I'm thinking it would make sense to purchase a home between 180K and 185K given my down payment. My first question is would I likely qualify for a loan? Second, am I looking in the right price range? I'd like to keep my payment at/around 1K to 1150 per month. I'm applying for FHA so need to factor in PMI.

Thanks so much in advance for helping.

If you are skeptical then do not get a loan for that amount, only take the loan for the amount you are comfortable with.