DTI/ front end & back end calculations

[Anonymous]

Hi there...

Can someone be so kind as to tell me if I am calculating our  DTI correctly : )

Monthly Gross Income:  $9397.00

Current Mortgage (includes taxes, insurance & PMI) : $898.00

Current Debts:

Credit Cards -  $0.00 balances with close to $75000.00 in available credit (2 paid off ($2000 balance) in the last few months)

Student Loans - $370.00 (two loans)

Car loans - $860.00 (two loans with 2.5 - 3 years left on each)

Front end DTI:  9.6%  (using $898.00 mortgage/$9397.00 monthly gross)

Back end DTI:  23% (using $2150 for mortgage, cars, student loans)

on another note...how well would we fair getting approved for a loan:

Latest credit scores (from house refi)

Experian:  738 & 765

Transunion:  780 & 744

Equifax:  775 & 753

Have about $10000.00 in "home fund".  We expect to make nothing from the sell of our current home.  Will not take loans from 401k accounts.  We would stay under $300,000.00 purchase price, but the negative in me tells me that we would never even be approved for that much...even though online home affordability calculators say otherwise.  We would probably purchase a home in Cook County, Illinois (Chicago suburbs). 

Thanks!

[StartingOver10]

You look in great shape, the only thing you are missing is a down payment ($10k won't be enough for a $300k purchase).

If you go with a conventional loan your back end will be maxed out at 45% which is about $4228/mth less $860 + $370  for your debt puts you at a max of $2998 for your new housing payment. More than what you need for a mortgage to finance a $300k purchase (unless your taxes are huge).

Looks like you just need to figure out where to get savings for your down payment and closing costs on the new purchase.