Finally found a house...need help with numbers..

[silly34]

Found the house we are looking for. Seller is asking $155,000 firm. We have a $10,000 down payment ready. Looking at around 6% interest on loan 30 year fixed.

My credit score via fico from October were: TU-631 , EQ-622, EX-652. We also had a ton more debt at that time but have paid nearly everything off. We talked to our bank briefly then as well and they qualified us for $140k with $10k down (wife can't remember for sure if it was $150 or $140 and I wasn't there)

Here is our debt (monthly)..

Car Payment: $425
Combined Credit Cards: $115
Rent: $435
Student Loan: $40

Here is our income (monthly)..
Mine: $2948.33
Wifes: $1440.00
Total: $4388.33

Have about a 23% debt ratio if I figured right.

So what do you think?

[Anonymous]

you are looking at 1300-1500 payment..  this is a big jump from the 435 but you have the income to pay it.  Just do your homework and now more than ever look at the house as an investment and determine if you are getting the right return.

I am still of the opinion that buying in most markets today is not a good idea and is much like catching a falling knife.  Good luck.

[ShanetheMortgageMan]

Did you try to become pre-qualified for $155k?  Your debt ratio could certainly support it.  I think the total PITI payment would be closer to $1,150/mo unless you live in an area which has real high property taxes (I'm assuming $1,550/year).

[silly34]

We are going to our bank Friday to look at getting financed, not just a pre-approval. Back in October my wife contacted the bank and laid out our current information that we had at the time and were approved for around $140K with $10k down. We are in much better condition now and suspect we will be approved for a little more. I don't believe the property tax is very high, under $1k a year. The house isn't in the city limits so that's a plus. If we were able to put down a little more than $10k how much of a difference would it make for a monthly payment? The $1300-1500 is on the high side for us to really be comfortable but the figure you provided of $1,150 is more what we were looking for.

B.

[ShanetheMortgageMan]

You could knock off $45/mo of my estimated payment figure because I was estimating property taxes $550 more per year than you are estimating.  How much more than $10k down would you be considering?  Sure your payment would be less if you put more down, but without an exact amount of how much more you'd put down it's hard for me to say.

[silly34]

Maybe $12k to $15k range more for down payment.

Thanks!

B.

[ShanetheMortgageMan]

By putting $15k more down you'd drop the payment by about $90/mo.