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Me and my wife are getting ready to buy our first home. Currently, we rent (1,600 a month) and have saved $21000. 15k of this will be for the down payment and the rest for closing costs. I imagine we will need 2 months asset payments which we have too.
We plan on buying a home between 295k-300k, with taxes on the properties at about $8500-$9500 annually.
I currently make 45k a year and my wife makes 53k a year. she did some tutoring last year to help save for the down payment which i believe totaled 12k, which we rightfully claimed on our taxes this past April.
So, total combined income is 98k, but lets round down to 95 just top safe!
total monthly debt:
Just my car payment at $276.00 (lease)
her student loan which $172, Fixed Rate.
2 credit cards totaling 8k - total monthly payments on these two equal $279 (will be down when we apply in early june)
total monthly debt = $727
I was promoted in March and now make a little over $23 an hour which I believe totals to about 45k a year (full time) at a bank.
Before i was promoted i made about $20.50 an hour which was about 41k a year i believe, same company.
Before that i also worked for the same company making about 14.50 an hour. I was promoted early July of 2015 and then again 2 months ago in March to which i now make a little over $23 an hour.
My wife has been working at her job (teacher) for 3 years, actually going into her 4th year when school starts up after this summer. She doesn't get paid for the summer, but she always saves more than enough for the summer.
My credit score is 730 and hers is either 767 or 777, i cant remember, but we both have great Fico scores with no past dues, lates or anything bad on our reports.
With everything i mentioned above, do you think we will be good to go when buying a home? We have enough for a down payment (less than 20% but will is at least the 5% min for standard), we make good money and have strong Fico scores..
I appreciate your response and will take it into consideration, but do you think a lender will approve us based off of the information i have provided?
I think you will be fine as far as getting approved. It would be at the very top end of allowable DTI, that would be your biggest concern. At 95K, All your monthly bills, including Mortgage payment, can't exceed 3400.00. You already have 727 a month in debt, which leaves around 2400 for a house payment. It will take every bit of that for a 300K house and 9K in property taxes and Home owners insurance and since you are putting less than 20% down, you will have PMI as well. It's going to be tight. You may want to consider doing a 3% down program and using the difference in down payment to payoff the CC debt and create some room in your DTI. OR reconsider the price point of the house.
My feeling is that you will be approvhinked. And you'll regret it.
You're stretched too thin.
Especially if, God forbid, one of you becomes ill and cannot work? Or loses their job? Seriously, consider rethinking this based on only one income. Why do I say that? Because that's what we did, and 5 weeks after we bought a new house, I was out of work on disability with no money coming in for 18 months. That would have been financial ruin if we had bought what we were approved for.
I appreciate your response and will take it into consideration, but do you think a lender will approve us based off of the information i have provided?
Sure.
There's always some bottom feeder out there that will facilitate your poor decisions.
I appreciate your response and will take it into consideration, but do you think a lender will approve us based off of the information i have provided?
I don't think you will have any problem getting approved. But know that your resources will be stretched very thin.
I make about 110k/year and plan on putting 20% down, and I'm scared to get anything more than $250k. My husband and I are planning to buy a new house this winter after he graduates from college. If he finds a job, that will be great. But for now, I'm planning for just 1 income.
I hear this talk about "buy a house that you can afford on one income" and while i understand the premise of this, it just isn't reality for most people. My wife and I together make 135K a year. I make the larger salary by quite a bit. So for this theory to work, we would have to buy a house based on the lowest income of the two. If we based it off mine and something happened, she would still not be able to afford the house payment so that does no good. So we would have to buy a house, big enough for 5 of us with an income of 46K a year. Or about a 110K house, in Houston TX.. sorry, not going to happen. This theory is fine if both make a decent income or close to each other's income. A house in a huge investment of time and money so I say get a house you enjoy and love to be in and enjoy it.
There's always some bottom feeder out there that will facilitate your poor decisions.
So, you think there are a lot of mortgage lenders who deny approve-able deals?
Sure the good lenders will counsel the borrowers, but when a deal easily meets guidelines, I don't think too many are going to deny based on their personal thoughts of....these folks probably shouldn't be buying this much.
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