12-27-2012 10:25 AM
My goals for the coming year include purchasing a home and returning to school and I am wondering if both are possible. Here are the details.
Marital Status: Single
Scores: 670 and 653
Gross Income: $39,000
Savings: $1200 and slowly increasing
Employment: 3yrs same company will be starting part-time position in Jan 2013 to suppliment my income.
Price Range: 90,000 - 130,000
I would be starting school in March and will be applying for a student loan. I plan to purchase the home towards the last third of the year. My utilization is high so I am working on paying off my cc to bring it lower. I have no negatives on my credit report (all done away with) but I don't have a long credit history.
My question is, is this doable given my income, savings, scores? Will applying for a student loan first affect the mortgage application later in the year?
12-27-2012 07:29 PM
Yes, I intend to work full time during the day and the new job is three nights a week plus a weekend day.
How are you going to work this schedule and attend school full time?
12-27-2012 07:44 PM
Wow...you have a great deal more energy that I have! I think you have good goals.
The only issue I see with buying a home is your DTI and the sales price of your proposed purchase. I don't know what your taxes and insurance will be, you will need to get that information to see if you qualify. You won't be able to use the new part time job income because it is a new job. So, bank as much as you can in savings from your existing full time job and use the money from the part time job to live off of. The underwriter won't let you use loan proceeds from school as your down payment funds so you might consider keeping those funds and refunds in a separate account so you can show that you aren't using school loan funds for your down payment or closing costs.
You will need a min of 3.5% of your own money (or gift funds from a relative) for your down payment. You can save a substantial amount of MI by putting down 5% rather than 3.5% As to closing costs and pre-paid expenses, you can generally negotiate some of those costs to be paid by the seller. However, the markets are tightening up right now and sellers are less inclined to contribute to your closing costs. You can get numbers from a loan officer, but you might want to figure in an additional 4% for closing on top of the 3.5%. Is that doable for you?
12-27-2012 07:58 PM
The way I see it, this is the best time. No BF, no husband, no kids and a lot of time that I could be doing something with to improve my income.
Thanks for info about managing the income from both jobs. That was something I didnt know about. I will do some calculations and see if things will work out the way I'd like them to.
12-28-2012 02:15 PM
the part time income cannot be used.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.