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Frequent Contributor
fuzzybean
Posts: 309
Registered: ‎04-04-2012
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I'm not enjoying this ride..

I know what I'm comfortable paying each month and I really don't want to change our 401k contribution or our IRA contribution, but it's being shoved down our throat.  We bring in 11k gross each month and everyone is pushing 45%.  I'm sorry, but that's just insane.  The loan officer it telling us to take $ from our 401k which we're NOT willing to do.  We have plenty in savings for a conventional mortgage which is what WE want.  Why the heck is everyone so damn pushy?  I can't stand it.  Only an idiot would agree to pay 45% of their gross for a mortgage.  We made it very clear up front that we had no intrest in spending all our $ each month yet it's being shoved down our throat.  As much as I despise this hell hole of a money pit I live it, it's looking really good right now.  *sigh*

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: I'm not enjoying this ride..

[ Edited ]

fuzzybean wrote:

I know what I'm comfortable paying each month and I really don't want to change our 401k contribution or our IRA contribution, but it's being shoved down our throat.  We bring in 11k gross each month and everyone is pushing 45%.  I'm sorry, but that's just insane.  The loan officer it telling us to take $ from our 401k which we're NOT willing to do.  We have plenty in savings for a conventional mortgage which is what WE want.  Why the heck is everyone so damn pushy?  I can't stand it.  Only an idiot would agree to pay 45% of their gross for a mortgage.  We made it very clear up front that we had no intrest in spending all our $ each month yet it's being shoved down our throat.  As much as I despise this hell hole of a money pit I live it, it's looking really good right now.  *sigh*


Our DTI for our new mortgage was 17%....  DO NOT get more house than you're comfortable with... just because you're "pre-approved" for that much...

Keep in mind that LOs, and realtors work off of commission, that's why they keep pushing you to the 45%

 

Might be time to ditch your lender.... rofl


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fuzzybean
Posts: 309
Registered: ‎04-04-2012
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Re: I'm not enjoying this ride..

[ Edited ]

webhopper wrote:

fuzzybean wrote:

I know what I'm comfortable paying each month and I really don't want to change our 401k contribution or our IRA contribution, but it's being shoved down our throat.  We bring in 11k gross each month and everyone is pushing 45%.  I'm sorry, but that's just insane.  The loan officer it telling us to take $ from our 401k which we're NOT willing to do.  We have plenty in savings for a conventional mortgage which is what WE want.  Why the heck is everyone so damn pushy?  I can't stand it.  Only an idiot would agree to pay 45% of their gross for a mortgage.  We made it very clear up front that we had no intrest in spending all our $ each month yet it's being shoved down our throat.  As much as I despise this hell hole of a money pit I live it, it's looking really good right now.  *sigh*


Our DTI for our new mortgage was 17%....  DO NOT get more house than you're comfortable with... just because you're "pre-approved" for that much...

Keep in mind that LOs, and realtors work off of commission, that's why they keep pushing you to the 45%

 

Might be time to ditch your lender.... rofl


Our DTI is less than 1%.  I guess I don't want to give up what we have...which really isn't much...just the occasional road trip on a whim and not worrying about it or having to charge anything.  We were approved for buying a house that would cost us over 5k a month...ummm I don't think so!  We've been through a lot the past 5 years and have done everything perfectly.  I'm not giving that up.  Why do lenders want to send us down that horrid path again?

 

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: I'm not enjoying this ride..

Lenders don't care about you... all they fare about is their bottom line. They see a high income person and they automatically start seeing dollar signs. People even here on this forum try to stretch their DTI to the Max to get "more house"

I never saw the point in that... but then my family size is small; there are only 3 of us.
Also; my husband and I would be happy living under a rock. We picked up a house for 163k. We used just my income for the loan. Lenders "pre-approved" me for up to around 250k.

Way more than we needed :smileywink: I talked myself out of a home that I liked that was listed for 215k. I didn't care for the kitchen and I decided it was too expensive.

The freedom of having extra money is awesome. Not something I would want to give up either. Stick to your guns!

With employer match; my.contributions to 401k are 17% of my gross salary. I'm 31 and my husband is 34. Its nice to know we will be well off down the road.

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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: I'm not enjoying this ride..

Remind me why you are sticking with this lender if he doesn't want to see things your way?

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fuzzybean
Posts: 309
Registered: ‎04-04-2012
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Re: I'm not enjoying this ride..


FrugalRican wrote:

Remind me why you are sticking with this lender if he doesn't want to see things your way?


We just started this a couple days ago.  I had to give him a chance, but I'm fed up already.  We pretty much decided we were done with him last night after he suggested we take whatever we can out of the 401k to help pay for the house.  We are not touching the 401k.  We have saved for years for this and have plenty in savings to cover a down payment and closing costs.

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Repo-ed
Posts: 2,954
Registered: ‎02-09-2012
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Re: I'm not enjoying this ride..

His chance, at least with me, would have come up right in the middle of the first meeting.  Glad you two finally came around to your senses.

Frequent Contributor
fuzzybean
Posts: 309
Registered: ‎04-04-2012
0

Re: I'm not enjoying this ride..


webhopper wrote:
Lenders don't care about you... all they fare about is their bottom line. They see a high income person and they automatically start seeing dollar signs. People even here on this forum try to stretch their DTI to the Max to get "more house"

I never saw the point in that... but then my family size is small; there are only 3 of us.
Also; my husband and I would be happy living under a rock. We picked up a house for 163k. We used just my income for the loan. Lenders "pre-approved" me for up to around 250k.

Way more than we needed :smileywink: I talked myself out of a home that I liked that was listed for 215k. I didn't care for the kitchen and I decided it was too expensive.

The freedom of having extra money is awesome. Not something I would want to give up either. Stick to your guns!

With employer match; my.contributions to 401k are 17% of my gross salary. I'm 31 and my husband is 34. Its nice to know we will be well off down the road.

I don't want more house.  I just want what we need.  I'm not even into new neighborhoods (I was when I was younger). 

 

I agree, the extra money is awesome!  Hubby maxes out what he can put in his 401k and the company he works for puts in 10% of his salary in every year!  And, I have a Roth IRA that I put 5k in a year (the max I can since I don't work).  2k out of hubby's paycheck goes straight into savings.  Also, his work expenses and FSA payments get deposited into savings so we treat those as our regular bills...just gives us a little more into our savings each month.  And, anything left in checking at the end of each month gets transferred to savings.  I like it that way and would like to keep it that way.  We don't have credit card debt.  I only use them to keep them.  I'm double paying our car loan so it'll be paid off next year.  And, we do have a new car loan but it's 0% for 60 months.  Sorry for the rant...too much coffee this morning, I guess!  I guess at the end of the day, I don't even want a mortgage, but we need to buy a house.

 

Frequent Contributor
fuzzybean
Posts: 309
Registered: ‎04-04-2012
0

Re: I'm not enjoying this ride..


Repo-ed wrote:

His chance, at least with me, would have come up right in the middle of the first meeting.  Glad you two finally came around to your senses.


That was rude. 

 

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
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Re: I'm not enjoying this ride..

If you are grossing 11k a month, then even with 45 percent backend ratio you should still have lots of left over cash.


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