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- townhouse for not more than 200k
- primary and secondary borrower (BRW1 and BRW2)
- salary before taxes around 65-70k for each borrower
- credit history length - 2y for BRW1 and 4y for BRW2
- no lates ever for both
- Fico CS: BRW1 - around 680; BRW2 - 750
- debt: BRW1 ~20k (car loan with 425 monthly); CC: 2k; BRW2: up to 1k on CC
- first time buyers (dont judge hard for asking maybe obvious)
- no family relationship between BRW1 and BRW2
Q1: so technically how does it look like when two ppl like above want to buy a house?
Q2: would it be possible to split the total loan amount in half? BRW1 gets 100k loan and BRW2 also?
Q3: whose CS or both would be primary when applying?
Q4: and general Q: with financial situation like above how do you think is it safe enough to get a good deal (lower APR)? Or wait and enhance BRW1's buyers power?
thx in advance.
**My hand shakes more and more recently while passing rent check to my landlord :/
1. That scenario looks fine for BRW1 & BRW2 to buy a home, debt ratio is in check, credit scores look decent, it'd just be up to if they had a down payment.
2. With mortgages the entire mortgage is qualified for by all applicants, it's not split up evenly (or unevenly) between the applicants, they are all on the hook for the entire mortgage.
3. The lowest middle score from BRW1 & BRW2 would be used for qualifying purposes, appears that would be BRW1.
4. If they are going for conventional financing, having a 720 score will get them the lowest rates. If they are going with FHA financing, the scores that they have would suffice for the lowest rates. These days the lowest rates for FHA are comparable, if not exact, to the lowest rates for conventional.
Thanks Shane.
Totally forgot huge (I think it is) factor:
- putting down 15-20%
I heard about some kind of required insurance here if you putting less than 20% down I think. Forgot the name of that thing...
@Anonymous wrote:Thanks Shane.
Totally forgot huge (I think it is) factor:
- putting down 15-20%
I heard about some kind of required insurance here if you putting less than 20% down I think. Forgot the name of that thing...
Called PMI(private mortgage insurance)
Will be very small pmt if you only put 15% down but it might be worth trying to get the whole 20%
Seller can pay some closing costs if that helps you get there.
thx!
so what is generic set of required documents to present for both of borrowers when applying for morgage loan with regular bank? I realize it may be diff for every case but there must be "must show" docs too... like maybe bank statements/pay stubs etc.. dunno just guessing.. please advice
We provided 2 months bank statements, 2 paystubs, 3 years W-2's, child support order. They'll pull your credit report and get most of your debt information from that.
Later we had to provide documentation of a paid collection, my school transcripts because i was at my job less than 2 years right out of college,and an updated bank statement because time had passed since original documentation was submitted,
thanks for sharing. So in my eyes reason to provide bank statements is to see your earning/spendings ave ratio.
absolute values are not valued since you can for e.g transfer smth to saving/401k etc etc