Debt to income Ratio

[camilleandbella]

Shane,

OMG....I browed a few condos in my zip code (32822)...I was amazed at the price difference in HOA fees. 

Condo Price $99,000 but fees are $320 a month   another  $90, 000 fees $140 ....... The first one was built in 2005 and is more luxurious.. the 2nd one was built in 1975 and doesn't have all the amenities.....

If I consider a condo, that's one of the first things I will ask about......

Thanks for the heads up

[ShanetheMortgageMan]

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beach123 wrote:

My debt is now just starting for 3 years for $463, the other one I can get under 10 months.  I'll have to come up with other measures then because there is nothing available where I need to live for that price

The one lender said I could qualify for $141k with the debt ratio (thought I had a property for a steal at $145k) but it's sold! 

I'll just have to watch and be careful as I don't intend to get into any crap loan...I'd go 40 yrs too but it seems to make about a $50/diff, but with the economy going in the tank $50 is $50!!

Thanks!

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Well like I said it doesn't mean that $120k is your limit, I was basing that off a debt ratio in the mid 40's... up to a 64.99% debt ratio can qualify, but you have to have some nice compensating factors (down payment, good credit, ample reserves/assets) in order to get debt ratios that high to be approved.

[ShanetheMortgageMan]

camilleandbella wrote:

You mentioned that you helped someone in Hernando County.  Do you fly out to Florida  prepare the documents?

Another Question.......

I was on realtor.com looking at houses in my zip code and came across this.

ORLANDO, FL 32822
MLS ID# S4625954

What exactly is a short sale?

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I actually don't prepare any of the closing documents.  I am a loan officer, so my job is to help people get qualified for a loan program and give them advice on which is the best to fit their situation/needs.  I go through the initial approval process with them, gather up documents, complete a loan application together, and then when I have all of the documents I need I submit it to an underwriter to confirm that you are approved.  After you are approved you get a "formal approval", which lists conditions (think requirements) for the underwriter to complete the approval and then enable the doc drawer to draw up the final loan documents.  Those conditions are usually an appraisal on the home, a title report from a title company, evidence of homeowners insurance from an insurance company (which you select), and anything else unique to your individual situation.  After those items are gathered and submitted to underwriting, they issue the final approval (called the 'clear to close') and then the docs are drawn up by the doc drawer, sent to the closing agent (usually chosen by the seller in Florida) who is local to you, and you'd go into the closing agent's office (like First American Title, etc.) to sign documents.  In Florida the day you sign the final documents is usually the day you own the home, in states west of the Rocky Mountains it's usually a couple days after you sign.

A short sale is where the homeowner is selling their home for less than what is owed on the property... so the lender who has the mortgage against the home has to approve it.  These transactions take quite awhile to get your offer approved, I was helping someone out in California who was waiting over a month for the mortgage lender on a short sale to approve the contract.  The rest of the process can move pretty slowly too, since not only is there the homeowner and their agent involved, there is representation from the lender that has to approve items as well.  If the short sale price isn't lower than other listings in the area that aren't short sales, I usually recommend avoiding them... you want to make sure you get a deal if you are going to have to go through all of that extra trouble.

Message Edited by ShanetheMortgageMan on 01-06-2008 02:34 PM

[beach123]

Thank you Shane for ALL your help - I will wait & watch, I want to see what happens in Feb when all my updates are posted  I can't change my salary by much even picking up extra hours at second job but I have a raise coming in July  I hope to actually find a little deal (don't care if it isn't much) and close late April (have to give 60 days), move in May 1 -

Probably should wait since our economy is tanking but having our own home is the dream for my children and it will happen finally!!

[ShanetheMortgageMan]

You are welcome.. as soon as you are at your new hourly wage, and if you work 40+ hours a week, you can multiply your hours worked per week times the new wage to calculate your qualifying income.

[beach123]

Thanks!!!

[ShanetheMortgageMan]

Welcome!