First Time Home Buyer....

[forgetmenot10371]

Hello!  My fiance and I are looking to purchase a home within the next 3 or 4 months.  We've never owned a home before.  I'm concerned with the way the home market is now, we may not be approved.  Our info is as follows:

Gross Income: 57k

Both our credit scores are around the 720 - 730 mark

I have a car that I still owe 10k on = $315 per month ( In my name only)

My Fiance owns his truck

Total, we both have 22k @ 4.5% in credit card debt ( It is all on one card that is in my name, but we have other cards with no balance)

No late payments, collections, etc.

I will have been at my job for 2 years in March

My fiance has been at his job for 4 years

I know the credit card balance is high and that's not good. I'm afraid that will hold us back from being approved.

What do you guys think?

Message Edited by forgetmenot10371 on 11-28-2008 06:22 PM

[BrianB_The_Loan_Professor]

Balances have nothing to do with approval it is payment and debt to income

What is the payment on the card and hoe much do you expect to have to pay for a home?

Brian

[forgetmenot10371]

The minimum is usually around 130 - 150. We usually pay anywhere from 250-300 on it a month. I would like to find something ranging 90k-110k. I'm hoping to not spend more than $118,000.00.

[BrianB_The_Loan_Professor]

You should be fine for an FHA loan

You will need 3.5% for a down payment but can ask the seller to pay closing costs when you offer

Your payment will be in the $750-$800 range and your debt to income will be fine

Brian