Mortgage Loans

[JWatson0405]

Hey all, its been a while since I've posted, last time with any regularity was while I was deployed.  Everyone has been such a help, I came back seeking more guidance!  Below is my information from the post by Shane regarding info needed for assistance, so if anyone can provide insight it would be greatly appreciated.  I am happy to answer any additional questions that help provide insight to my situation.  I'm basically torn between applying for a pre-approval now, or waiting to pay down my CCs.  If I could be approved for a mortgage in the range I'm considering as I stand, I would go ahead and move forward.

• Credit - ~700 across the three, I have one late payment on a car loan from 4/11 - I have since refinanced this car loan, but don't think that matters.  No other negatives, aside from currently in high CC utilization.
• Income - Salaried income of $60,000, additional $10,000 annually from service as a national guardsmen, officer.
• Source of income.  Salaried employment, the additional income is based on days, but it averages to $10,000/yr.
• Monthly debt payments - $500/month personal loan, $400/month auto loan.  This is where my biggest questions lie.  My high cc utilization currently sits at around 70% on one card $4200/$6000, and about 35% across all my revolving CL $4200/$12000.   (My latest credit scores were pulled when my single card utilization was even a bit higher.)  The cc utilization is what worries me most - can I qualify with this debt, or do I need to pay it off first?
• Employment (for those who are employed) - W-2'd, full-time employee.  I've been on the job for 6 months, started here immediately following a return from overseas military deployment.  I graduated from university just prior to the deployment, so believe I fall into the category of working within my educational industry.
• Assets/Reserves - Used what I made on deployment to pay off some old debt, so assets/reserves are pretty much non-existant at this time.  I qualify for a VA loan, and intend to go that route.
• Location.  Minnesota, Sherburne country.
• Property.  Single family house, homes we are interested in will all be in working condition, move-in ready, suburban.
• Value.  I've seen homes I like between 200k and 230k.  The reason I'm putting this inquiry in now vs. waiting to pay down the rest of my cc is because of a home for sale asking 226k that I would love to get.  I just don't know if the price range is realistic for my income, if I could be approved for that amount (with or without the cc debt).  The personal loan will be paid in 2 years, which obviously frees up a great deal of income.  I'm also just starting out in my career, and so feel more comfortable stretching a bit as my income will be increasing.
• Occupancy.  Primary residence.
• Transaction Type.  It is a purchase.

[Blackhawks_girl30]

When I spoke with a few loan officers they had all given me pretty much the same amount for pre-approval.  I make roughly $55k/year salary, $450/month car payment and $9 in debt on credit cards.  I was pre-approved for $190k since my debt to income ratio was so low.  You could speak to a loan officer and give him or her all of your numbers.  They should easily be able to tell you if you would qualify and for how much without running your credit. 

Also, I know VA loans are different than FHA but I have had to have extra money for things I did not even factor when initially looking (attorney/inspection/etc).  Not sure if VA requires these, but figured I would throw that out there

If you can wait,I would say pay debt down first, save up reserves and then find your dream home.

Good luck to you!!

[mwmiller82]

This is good to know, you can also use a home mortgage calculator, there's plenty of them online.

Im actually in the same boat, I will be ready to apply in the next month and a half from now, only thing is 3 of the lenders that I've talked to told me that they can't give me an estimate, that I would have to apply first, which is BS.

Question to you blackhawk, I used your income and debts on a mortgage calculator, and it was almost on the money as far as what you was approved for, the only fields I didn't know wasknow much was the property taxes, downpayment and homeowners insurance of the home. 

I used http://cgi.money.cnn.com/tools/houseafford/houseafford.html  so if you can use the same calculator and get back to me that'll be great, I'm just trying to see how close I am to your numbers.

Thanks.