Will I qualify for a home loan?

Question

We have been prequalified/preapproved together. We tried it first with just my husband, but then our debt appeared larger because it was sans my income. With our combined income we average in the low 90s per year. We are first time home buyers. Our monthly debt is around 1400 per month. What do you think? Could we qualify for a home loan?

Answer 1

why are you doubting a prequalification?

Go for it. If you can't find a bank to give you a mortgage go to a independent mortgage broker. They deal with many banks who give loans to higher risk applicants.

If you have an excellent credit score you will have no problem getting a loan.

Another piece of advice is to keep a receipt of ALL of your rent payments for 1 year...a canceled check is best. This way the bank will know that you make your payments every month. Not having one of these receipts or canceled checks could jeopardize a good interest rate.

Answer 2

This is for MadMax - are you a Broker or a Lender - not many americans have 700 + credit score - in todays times and market. If you have a middle credit score of 580 + you can get 100 percent financing. Some will go lower - but most want 580. I underwrite for 150 companies, so I know what the lenders want, want it takes to get a loan thru...as most of us do that have been in the Financing business for years.

Now did your broker try going bank statement for you, with using 12 month bank statement, you can qualify your debit ratio on hubbys income, If, you deposit your income into the same account....add up the 12 months, and divide by 12 = income. Please read the following:

When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.


Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.




Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information. This is not an advertisement - just helpful information for you...



http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/

Answer 3

Only your bank can answer that as some banks are more willing to take a chance on first timers than others. Lower your debt as much as possible helping one another to reduce the overall... especially credit cards. Student loans aren't that bad in regards to a credit report but credit card debt is.

BTW... your credit score should be above 700 NOT 570 like Machelle says. If you had a score of 570, I doubt they would even give you the time of day!

Answer 4

The thing that you should be looking at is your beacon score. That is the MAIN thing. About your income, dont worry, you can do what we call "stated income" where you dont actually have to submit proof of what you earn. Off course you can qualify for a loan, but first pay attention to things like what your down payment will be, credit score, loan type... etc... dont jump into anything right away and study options

Answer 5

Side note: Their definition of USDA was slightly wrong. Just about any home in a rural area can be called this. 0% down. Sounds like you bought a 100 year old home or older. In the county next to mine there is a whole neighborhood of USDA homes. Tiny lots homes next to each other. The place is at least 45 minutes away from high schools, hospitals, grocery stores. ^ That could qualify a home to be called USDA 0% down.

Answer 6

I'm a little confused on this one, I've answered some of your other mortgage questions, but this one confused me....

You asked "Will I qualify for a home loan?", the you said "We have been prequalified/preapproved together." It sounds like you answered your own question."

Based upon the information you've provided it sounds like you could easily qualify for a loan of approximately $275K.

Answer 7

Why try and guess - call a mortgage lender! It is free and if you are turned down, he/she can educate you on what to do with your credit to be able to qualify. Mortgage lending is complicated, so don't be fooled by the general rule ratios.

Answer 8

Give me a call I my be able to asst you I'm a loan officer 1-800-207-4105 my name is Dionne Coles

Answer 9

if you have been prequalifed then sure..that is normally what that means...it does however depend on your credit score too...try lendingtree.com..your debbt to income ratio is really good..so as long as your creidt score is decent like at least 570 then I see know problem...good luck!