Will i get approved for a $160,000 home loan? my credit score is 685. monthly:$2941 and monthly debt:$460.?

Question

I am only 20 years old but i will be graduating in may 07 with a bachelor's in education...and heard that i can use my years in school as work experience.

yes my monthly income will be $2941

i will be a first time home-buyer

if possible, any ideas on how much the following will be:

1. payment
2.downpayment
3.cash reserve
4.closing costs

my fiancee plan to live together in the home but he has really bad credit(500's) ...IS THERE ANYWAY TO USE HIS INCOME WITHOUT HIS CREDIT IF WE AREN'T MARRIED?

HE EARNS ABOUT 40,000/YR

MR. KEVIN,
First of all thank you for responding. Second, I am looking at that will be built bylt by KB homes so...my question is: is there any bargaining with KB Homes as far as how much they will charge to build my home?

Answer 1

Yes you can get approved easily. You have a good credit score, and a healthy income. It looks like you more than qualify to buy that home you want. Qualification is not your problem. I have twenty lenders that would bend over backwards to give you a home loan and they wouldn't even ask you for a down payment

The only thing that concerns me is my whether you've determined what your long term financial goals are and if you've thought about building some reserves just in case life throws you a curve ball.

Your new payment would be about $1100-1200 amonth without taxes or insurance. You should, but don't need to, have about 3-6 months worth of bills in your savings. If your fiance has this then that should be fine.

You don't even have to pay for the closing costs associated with your loan because you can get the seller to finance the difference.

There are a TON of homes on the market right now and sellers are desperate. Especially new home builders because they have to pay for the homes everyday they don't sell them.

Most banks will typically allow the seller to credit you 3-6% of the purchase price toward closing costs. Some banks will even allow you to walk away with money after closing. The way it usually works is that when you make your offer you ask the seller to credit you X amount of dollars.

Sometimes buyers will add what is needed back into the purchase price. For example, let's say you are willing to pay $100,000 for a home listed at $105,000 but need $1,000 for closing costs. What you would do is make your offer at $101,000 and have the seller credit you $1,000 at closing.

Some sellers and listing agents don't like to work with 100% financing, but a good mortgage professional can make them see otherwise. Please feel free to contact me if there is anything you need. My office phone is 818-361-8585 (just ask for Kevin)

Answer 2

Lenders look at many areas to decide on loan approval, including:

1. The value of the home.

2. If you are refinancing an existing home, they consider the amount of equity.

3. Whether or not you are a first time home buyer.

4. Your track record on paying your bills on time.

5. Your debt-to-income ratio.

6. Your credit score.

Also, they will consider who will be co-signing (if anyone). Even if your credit is considered weak by lenders, they may still approve you if you have a strong co-signer.

You can find more information about home loans as well as apply online for multiple quotes at creditfederal.com and bankrate.com

Web

Answer 3

What is the monthly $2491? Your income?

Everyone can get approved for a mortgage. Just make sure you can afford your payments and everything else that comes along with being a homeowner.

I have 2 friends who qualified right after bankruptcy.

Just remember, you are doing the banks a favor by getting into this 30 year debt. You do it on your terms.

Answer 4

Assuming a 6% interest rate, your monthly payment would be $959.28. This is 32.6% of your gross income. Your monthly debt including the mortgage is 48.25%. I don't know if you will be approved, but I can tell you from experience, you can't afford the loan.

Answer 5

With the way the mortgage mess is and lenders being loose with mortgage loans,... good luck! Either get a co-signer, build up your credit for a little, or have a huge chunk of money to put down on the house

Answer 6

No.

I suggest you to apply for more credit cards to increase your credit score to at least 700 (Just don't use them)

I also suggest you to buy a house you can afford ($80,000.00 USD) on your own and leave your girlfriend out of this.

I also suggest you to pay off ALL YOUR DEBTS before you try to apply for a home loan or your interest rate will be a lot higher.

You should save at least 50% of your salary for a while until you have at least $8,000.00 (10%) for a down payment.

You should keep saving at least 50% of your salary for a while until you have at least $32,000.00 (20%) for a down payment after you get your first house and then you can sell your first house and get a better house.

Answer 7

Cristal I am a Licensed Lender in New jersey I'll give you a loan =P


Oh and steven if you were reading she said her fiance earned 40k per year so obviously shes not riding alone and to anwer you cristal, if you go stated income/verified asset yes you can put yourself as primary borrower and your fiance as secondary but you need not. this is simply because as steven so elequently put it your full doc dti would work out to under 50%.

Answer 8

you have a very attractive numbers, you should be able to get into a place with a 6.5 intrest rate or so. If you are doing no downpayment you will end up paying PMI. i am guessing your payment will be around 1100-1200

Answer 9

I often spend my half an hour to read this blog's posts daily along with a mug of coffee.

Answer 10

You dont even need to do this. I can get you a no documents loan for about 8%.www.minesbay.com