Can we get a mortgage?

[Anonymous]

My fiance and I are getting married in June and would like to buy a house after that. My score was 670 when I last checked it in December. I haven't done anything to my credit since then except pay my debt on time. His score is 720. We have about $5,000 for a down payment and are looking at a $110,000 house. We do have a lot of debt though. I have about $35,000 in student loans, $15,000 on my car and $10,000 in credit cards. He owes about $20,000 on his car and $8,000 on his credit cards. Together, we will make $100,000.

[Anonymous]

What are your total monthly debt payments?

What is the expected real estate taxes?

What is your total monthly income?

Is it all regualr w-2 earnings or is any of it self employed or 1099?

How long on job for both?

[Anonymous]

Total monthly debt of about $1,300. (That's car, student loan and credit cards. That's the debt we have (except utilities, cell phones, insurance, that kind of stuff.)

The real estate taxes are not quite $1,200

Our total monthly income after taxes is about $5,500 a month. He usually gets a bonus but I didn't include that in this because it varies.

It is all regular W-2 earnings. He's been at his job for seven years and I've been at mine for almost two.

Message Edited by dkjay on 03-29-2009 05:08 PM

[Anonymous]

Yousaid in your first post that you made 1000,000 together a year. That allows you 3580 a month in debt so subtract 1300 for you cc, student loans and car and you get 2280 a month that would be allowed for a principal, interest, taxes and insurance payment and pmi.

They will use the lowest middle fico score between the two of you so they look ok. It must be above 620. You were correct to not include his bonus because I believe they would take the average of the last two years verified by W's. Your work history looks good. They will want nothing bad on your credit reports in the last 12 months atleast.

a 200,000 mortgage with 1200 taxes and 600 in yearly insurance and pmi is going to run you about 1400 or so.

You have 2300 so you are well within range.

[Anonymous]

I forgot to add. Check out FHA 3.5% down. That is about 4000 on what you are looking at and you have saved about 5,000 and negioate seller assist your your closing. You might need to save a bit more to finish off your closing and out of pockets.

[Anonymous]

That all looks great.  With only 5K down though you will need to negotiate seller paid closing costs which can be tricky sometimes as the appraisal needs to come in high enough to cover the loan value (price plus closing costs)

[Anonymous]

Excellent! Thanks for your insight!