Can we get a house?

Question

I am 32 and just got out of the Navy after 12.5 yrs. My credit score is 573. My wife is 26 with a score of 720. We are trying to buy a house for 169,990. I make 28K post tax at Comcast (where I work now) and me and the wife receive 1200 a month in Disability pay which is non taxable. We have our phone interview with Pulte Mortgage tomorrow morning. I'm just wondering if this is a pipe dream and if not, what kind of rate can we expect? We also have the option of using a VA loan since both of us are prior military. Oh and we just paid off my wifes car 2 years early to free up 453.00 extra a month. Any help is appreciated.

I forgot to mention that we have over 10k in mutual funds. We can afford the payment since we don't have much else for bills. We are really good with our money, I just have bad credit history due to me being young and foolish. And yes, both me and my wife are eligible for a VA loan each.

Answer 1

You can definately get a house. You just need to ask the right questions. And do your homework before you pick your lender. MAke sure they list alll you options. I am a single mom and I had to file for chapter 7 after my husband left me with big bills that I couldn't pay, and I only make about 34,000 with no help from my ex-. I went on line and look for companies that lend money to people with bad credit. I got a loan for 100% the cost of the property. No down payment, no closing cost. The only thing was that I had to get a split loan (80/20) the smallest loan interest rate was very high, but I kept it for a year and refinance to have just one loan. Just remember, you are the costumer, don't be afraid to ask questions, check with different companies, just make sure that you do that within a 30 day time frame., otherwise it may hurt your credit. You should be ok, as long as you have made your payments on time in the last year o so. Good Luck!

Answer 2

You should not be so worried about getting approved, you should be more worried about whether you can make the note. You are talking about borrowing over 4x your annual income! How will you even be able to afford the utilities on the house & basic necessities if you have that large of a house note? What if you have an emergency that causes you to miss work? I sincerely hope that you can get into a position to be able to afford a house in the near future, but I think you are fooling yourself here. The mortgage company might very well be foolish enough to approve you, but you will be living w/ so little wiggle room that one mishap (layoff, medical emergency, strike,...) could send you over the edge financially. I am not trying to crush your dreams, b/c I do think that if you take some time to work up to a better salary & save up a good down payment for a couple of years, you will be able to get a house. I just don't want to lie to you & tell you that borrowing 4x your income for a house is reasonable, especially since your wife is disabled & cannot just pick up a job to take up the slack if your budget runs short (like a healthy sahm might be able to do).

Answer 3

Depending on how you get financed, the lender will probably use your wife's credit score instead of yours. It also depends on how much you've saved, how much you're willing to put as a downpayment. 720 is pretty good (850 is best, but really unachievable without owning a home). You also should have 3-months reserves to cover PITI (payment, interest, taxes, insurance), which is the mortgage payment and any taxes or insurance you get with the house.

You can check www.bankrate.com for national averages for various lending products (e.g., 30-yr fixed, 15-yr fixed, option ARM, etc.).

And, it may involve more paperwork, but you could also get whatever help you can from the VA loan.

Answer 4

At this point in the market, almost anyone can get a home, but be careful of the financing options they give you. You don't want your housing expense to be anymore then about 35% of your monthly income, so I would figure out what you make a month combined and know a range of numbers of house payments you would be comfortable with. Also since you are going to be living in this house, they might even offer you an interest only loan, I would be careful of that too, they might just put in a prepayment penalty, make sure that is not in ANY agreement you sign, especially if you get an ARM. If I were you, I would check with the military and see how many VA loans you get, if you get one and your wife gets one, if they can be combined or have to be used seperately. The reason I mention this is because if you only get one for example, I would be more inclined in saving it for your dream home later on, unless you plan on dying in the house you are buying then go ahead and use it. And if this is your first house, see what kind of first time home buyers programs they offer in lieu of using your VA loan, or even if you could combine VA and first time home buyer.

Answer 5

The VA loan will probably give you the lowest interest rate. Make sure the lender you're working with investigates this FIRST. After that, make sure you account for ALL of the financial implications, both plusses and minuses, meaning:

Property taxes and insurance
maintenance
utilities that you might not have had to pay before (water & garbage)
upkeep
TAX BENEFITS (ALL of your mortgage interest is completely deductible. Plus, once you start itemizing, you'll discover all kinds of deductions that you qualify for)
APPRECIATION IN YOUR NET WORTH DUE TO YOUR HOMES VALUE GOING UP.

In short -- GO FOR IT!!!!!!!!!!

Answer 6

Your loan will probably be approved. However ...you may find the prospective payment a bit steep for your income. I would suggest looking at government repo homes to get a better sales price. Check out this website ....www.hud.gov.

If you do your homework and depending on the state you live in you can get some great deals ! I should know....we bought ours through them and on the day we settled our home was appraised at twice the price we paid for it. That way you also start out with instant equity in case you need to make a home improvement loan later on.

Good luck !

Answer 7

Yes you can get loan.
I have a list of some best websites offering mortage loans with low interest rate and also some real estate compnies with details such as location, prices, service etc.
Just email me with subject mortage and real estate at [e-mail] you dont
have to write anything.

Best wishes

Answer 8

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Answer 9

you can use your wifes credit score to buy a house, and a better rate too. you will be fine.

Answer 10

Sounds like you will be a homeowner soon...you should not have any problems.

GOOD LUCK!