FHA Pre-Approval Advice

[Anonymous]

Hello,

I'm mainly a lurker on these forums and harvest a wealth of knowledge from the experts here, so thanks! I'm looking for some advice from anyone who may have reliable advice on our situation and potential opportunity to puchase a home. My girlfriend and I are looking to buy our first home together. When applying for a mortgage together, do they combine both our incomes and debts and then do a DTI, etc and pre-approval?

Here is our profile:

Her: $32 K year - 9 years at job ... possible overtime optional (added to 32K)

Me: 75 K year - 9 years at job ... 3% raise per year

Her: 720+ FICO across the board.

Me: TU 644 FICO, EQ: 671 FICO, EQ: 640-650ish (last nov) ... Chargeoff for July 2006, no lates 3+ years

Her: $400 min payments on Credit cards. No other debts.

 Me: $1200 month child support (divorced, what a killer!! 6 more yrs for one and 10 yrs for other)

$470 month truck payment (4 years)

$200 month credit cards (could pay 1/2 now but saving cash).

$150 month student loan

$300 month personal loan - 2 more years (trying to liquidate an asset and pay off this spring / summer)

We have approximately $4000 saved thus far for down payment. Hope to have at least $5000 - $6000.

We want to get a house by December 1, 2009 because our lease is up Nov. 31, 2009 and we can also use the $8K tax credit to pay some debt and save. Currently we are leasing to own a house but we decided we are not going to buy because of some major issues which came to be known after we moved in.

I'm curious on how they calculate everything and know we could easily afford $1000 mortgage (PITI) combined, as we pay $700 + all utils now. I am trying to get my $300 per month personal loan paid off this summer. Thus I want to wait before even trying to get a preapproval and taking a hit yet. I guess I'm curious at how much we may get approved for if anything and how the calculations are made. Also when we should start looking hard. Currently we are "poking around" the areas we like. All the calculations online seem to return different results.

We live in Pittsburgh where the prices are relatively low ($80 - $150 K for decent housing and neighborhood)

Any advice and helpful comments welcome. Sorry for the long post and thanks much in advance!

[DallasLoanGuy]

I don't see any reason why $1000 per month mortgage would be a problem.

 If you apply joint, then both of your incomes are used and both of your debts figured.

Advice? Apply early.

We also have ways to simulate things like the loan bing paid off it that matters, so knowing NOW may set your mind at ease.

[Anonymous]

Thanks for your reply, and quickly DallasLoanGuy. I always hear you have 60 or 90 days. Is this from the time you receive a preapproval to an offer or close? Our lease is up end of Nov. 2009 so I want to time it right. We are looking though to get a feel for the market and what's out there. I am also trying to liquidate some assets this spring/summer if possible that winter isn't favorable to up north here (summer camp and boat). I want to be able to push for up to $1200 mortgage, or rather up to $150K list (so maybe $130 - 140 K final) if needed. Coldwell Banker told me they can do a preapproval within minutes usually. Is this normally the case?

Thanks again!

[DallasLoanGuy]

preapproval takes no time.

loan ap, pull credit, run thru automated underwriting, then review income/asset documentation.

i aprove people at my desk off the efax.

easy peasy

get a second opinion from coldwell banker..... or bring the gfe here for review.