@FuturePlan2 wrote:
I am almost afraid to purchase now. It's ridiculous already for individuals trying to get started in life as well as those established that took a huge hit in the previous housing bust and now it's getting even more restrictive. With student loans and a car payment, the new DTI ratio is making things a little more tight for me and I pay way more in rent. Im hoping to apply for my mortgage in Nov/Dec and wont close until spring bc it's new construction.
Can you do something with the car payment?
I have found that that is the single most common reason people have difficulty with their DTI. Student loans are also a very common reason but you can't normally get rid of student loans like you can get rid of a car payment.
Think strategically. If you make application and have no existing car payment, the bank doesn't assume you will eventually have one - they calculate your DTI based on your debt that exists at the time. So, think about selling the vehicle and getting rid of the car payment in order to afford the type of home you really want. Then after you close, go buy a vehicle with an affordable payment.
@FuturePlan2 wrote:
I am almost afraid to purchase now. It's ridiculous already for individuals trying to get started in life as well as those established that took a huge hit in the previous housing bust and now it's getting even more restrictive. With student loans and a car payment, the new DTI ratio is making things a little more tight for me and I pay way more in rent. Im hoping to apply for my mortgage in Nov/Dec and wont close until spring bc it's new construction.
I feel your pain. I feel like those of us who are trying to do the right things are the ones being pushed out of the market, while those who gamed the system are getting the breaks.
We are underwater on our home, but chose to do the right thing by not walking away.....and this one simple decision is the biggest PITA for us as we try get our ducks in a row to qualify for a 2nd home. Just when I think that I've gotten a handle on things, some new rule gets put in place and pushes us back.
Last night we made the decision to just do a pre-qualification sometime after 9/15 just to see where we are. I'm no longer excited about the process because I truly feel that we have been pushed out of our dreamhome range. I'm now just trying to get into a home within a good school district for my kids. All because we have a home that we cannot sell and there's no other legitimate recourse for us!
It's so sad.
@frugalQ wrote:
@FuturePlan2 wrote:
I am almost afraid to purchase now. It's ridiculous already for individuals trying to get started in life as well as those established that took a huge hit in the previous housing bust and now it's getting even more restrictive. With student loans and a car payment, the new DTI ratio is making things a little more tight for me and I pay way more in rent. Im hoping to apply for my mortgage in Nov/Dec and wont close until spring bc it's new construction.I feel your pain. I feel like those of us who are trying to do the right things are the ones being pushed out of the market, while those who gamed the system are getting the breaks.
We are underwater on our home, but chose to do the right thing by not walking away.....and this one simple decision is the biggest PITA for us as we try get our ducks in a row to qualify for a 2nd home. Just when I think that I've gotten a handle on things, some new rule gets put in place and pushes us back.
Last night we made the decision to just do a pre-qualification sometime after 9/15 just to see where we are. I'm no longer excited about the process because I truly feel that we have been pushed out of our dreamhome range. I'm now just trying to get into a home within a good school district for my kids. All because we have a home that we cannot sell and there's no other legitimate recourse for us!
It's so sad.
+1,000
I didn't buy at the height of the market when anyone could get a loan, because I knew I couldn't afford it. My state was hard hit by the housing crash, and I know of many people who walked away because they felt like it, or could no longer pay on a mortgage that they knew from day 1 they couldn't afford. It's infuriating to watch people like that qualify for another home 3 years after walking away, yet those of us who were responsible have one road block after another thrown at us.
Forgot to note I drive a Honda so I have a reasonable note. Only reason I purchased a new one is because my 11 yr old car went on to car heaven 
@FuturePlan2 wrote:I'm not selling my transportation just to purchase a home the bank assumes I may or may not can pay when I've been paying monthly rent that is more than the mortgage payment I want with no problem. I will just wait and purchase later if they are unwilling to lend. I think no more than 3 times your income is reasonable. I'm not asking for a $300k loan like they would give years ago at the drop of a dime. Good luck everyone!
And that is what is so sad. Our rent is much more than the mortgage, yet I am getting a hard time. Its utterly stupid. Its obvious I am going to keep a roof over my head.
Starting Score: 565
@frugalQ wrote:
@FuturePlan2 wrote:
I am almost afraid to purchase now. It's ridiculous already for individuals trying to get started in life as well as those established that took a huge hit in the previous housing bust and now it's getting even more restrictive. With student loans and a car payment, the new DTI ratio is making things a little more tight for me and I pay way more in rent. Im hoping to apply for my mortgage in Nov/Dec and wont close until spring bc it's new construction.I feel your pain. I feel like those of us who are trying to do the right things are the ones being pushed out of the market, while those who gamed the system are getting the breaks.
We are underwater on our home, but chose to do the right thing by not walking away.....and this one simple decision is the biggest PITA for us as we try get our ducks in a row to qualify for a 2nd home. Just when I think that I've gotten a handle on things, some new rule gets put in place and pushes us back.
Last night we made the decision to just do a pre-qualification sometime after 9/15 just to see where we are. I'm no longer excited about the process because I truly feel that we have been pushed out of our dreamhome range. I'm now just trying to get into a home within a good school district for my kids. All because we have a home that we cannot sell and there's no other legitimate recourse for us!
It's so sad.
This x1000. I ask myself often, "Where would I be if I had just given up and walked away?" I'll tell you exactly where I'd be: my dream house. Quitters never win except in the game of credit. I could afford my mortgage and my lifestyle, so the responsible and sensible thing to do would be to live honorably, right? NOPE!!! So now we're stuck in this tiny craphole, can't have anymore kids because there literally isn't room to put a crib or bed in, and my life has been on hold for 5 years.
<rant>It almost makes me want to walk away from the place now, rent some other craphole for a few months, then pay cash on our dream house. I want to refuse to play the credit game. The person with perfect credit should be the person that doesn't have to rely on credit at all. We shouldn't be bound by the restrictions imposed by a class of people who want to keep the cash all to themselves! WHO'S WITH ME IN THIS???</rant>
Obviously, my rant is a little extreme, but I really get fired up over the fact that if I just compromised my morals one time, I'd be living the high life right now.
Starting Score: 614
@cazz wrote:Ok thank you I have a collection from my college which isnt a student loan that reported once in 2009 for $4000 and they havent reported since and they said they will never report anymore ut they also wont remove it. So its no longer ffecting my credit and my lender told me not to worry about but that was back in June so i got nervous and went ahead and applied now for my mortgage instead of waiting until november like i originally planned so im hoping that i will be fine.
Sounds like you owe tuition and fees. I wouldn't be so nonchalant, that lender told you wrong. The Loan Officer is one thing, the Underwriter is a whole another ball game. Plus if I was in your shoes I would pay that off. I had a similiar situation, except it was a Perkins Loan. When you owe the school, they block you from everything. When I mean everything that includes Transcripts, verification of paperwork that they have on you, financial aid, being able to transfer in the future to another school. And when you transfer schools they request all college transcripts, and they do find out even if you omit info. Employers even ask for transcripts nowadays.