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Hi all,
First time posting on here and here’s my story—
My Fiancé and I just submitted an application for an FHA loan.
We are first time home buyers—house cost is $239000. 3.5% down payment- $8365- ( will be coming from my roth ira- $5400 and $3235 with $2K in closing costs coming from savings). Fico scores are as follows—mine is 724 his is 770. Our front end DTI is 24% back end DTI is right at 44%. He has a car loan that will be paid off in 6 months and then the DTI will reduce to under 41%.
Here are my questions.. Our loan officer sent us the application for signatures and review of any corrections. On mine she put I had 40K in my checking account but did not list my 401k or my Roth ira as assets. I corrected it by stating I have $6700 in my savings and $7100 in Roth and $23K in my 401k.
I am not sure why she posted 40K the way she did.. any ideas?
Another question is do we have a good chance of being approved to close?
Also, my fiancée just received a promotion effective 04/15/13 with a raise in income.
Currently our monthly gross is $7360 currently. With the new income on his end it will rise $7760.
The monthly mortgage will be $1802. ( includes PMI, HOA , taxes everything).
Debts are for me $605 – for him $795 a month.
What are our chances of getting approved for the loan?
Wouldn’t I be able to note on the loan application that my Roth IRA and 401k is a liquid assets as well as my savings and checking is?
Let me know your thoughts thanks! J
I would say easily a Yes. With high scores and reserves 44% will not be a problem. Lenders will fight for your loan. Dont accept anything below 3.25%.
95% the people on here wish they were in as good a position as you are. Stop teasing.
fdiggy,
Thank you for your response
I actually was not teasing at all, I was wanting to get some type of idea if we would or not. Never purchased a home before so its all new to us.
Thank you
You have no worries.
With only 6 payments left he could pay off the car. That would look even better.
Theres something about having scores over 640 and DTI underr 43% i think makes it an auto approval pretty much.
I think scores over 720 with 5% down can also go conventional. I may be wrong.
I would look into paying off that car and looking into a 15 year loan. Get a rate near 2.6% and PMI is only 0.25% of the loan with 10% down.
The money you save on PMI makes it not much more monthly to own in half the time.
You are good to go. Congrats!
Your fine. I'd also run the number on a conventional as well. Most lender will accept two check stubs and count the higher income.