Possible First Timer

[jnydc]

I plan to move.  I have been verbally offered a job in my same career in a new state, but am waiting for the official offer letter.  How does that work with regard to preappovals and stuff.  Do they look for your current income or your new income based on an offer letter...or both?

I currently make about 72k, and will probably make about 82K where I am going.  In terms of monthly expenses I have abour 450 in student loans, what else is considered in my DTI?  I have currently 130 car insurance, (No Note).  And credit cards that I pay...but that is variable.  I tend toward no large outstanding balance, but of my $3000 of extended credit, about 500 reports every month.

I don't have anything much liquid to put down.  I do though have 36k in a TDA that I am trying to decide if I need to divest and put into a 401k...or should I withdraw alot of it to put down?  That being said.  What do they look for in reserves for a person to have?

Please help...I can offer other info as needed.

[ShanetheMortgageMan]

You'll either need a non-revocable employment contract (not just an offer letter) or a paystub showing 30 days of pay before you can use the new employment and it's income to qualify.

Any monthly debt obligations you have are included in your debt ratio - student loans, car loans, credit card minimum payments, personal loans, child support, alimony, IRS repayment plans, etc.  Utilities and similar expenses, such as cell phone, insurances, gym membership (unless reported on the credit report), child care (only a factor for VA loans) aren't considered.

If you are buying in an eligible rural'ish area, then USDA financing might be a possibility if your income fits within the limits, and that does 100% financing.  VA loans also do 100% financing.  FHA loans require a 3.5% down payment.  Conventional requires 3-20% down depending on the full situation.

For a primary residence it's good to have at least 2 times the proposed housing payment in reseves after closing, it's a requirement on some programs and on others it can make qualifying easier.  60% of the tax deferred annuity can qualify, likewise if you put it into a 401k then 60% of the vested portion can quailfy.

[jnydc]

Oh Shane... I have always dreamed of gettign a reply from you ( you think I am kidding...).

I definitely have to do FHA as I am looking in the DC area.  I run about 800 a month in expenses including Student Loans.  Do I have a shot?

Oh, and Shane...keep that winning smile!

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@ShanetheMortgageMan wrote:

You'll either need a non-revocable employment contract (not just an offer letter) or a paystub showing 30 days of pay before you can use the new employment and it's income to qualify.

Any monthly debt obligations you have are included in your debt ratio - student loans, car loans, credit card minimum payments, personal loans, child support, alimony, IRS repayment plans, etc.  Utilities and similar expenses, such as cell phone, insurances, gym membership (unless reported on the credit report), child care (only a factor for VA loans) aren't considered.

If you are buying in an eligible rural'ish area, then USDA financing might be a possibility if your income fits within the limits, and that does 100% financing.  VA loans also do 100% financing.  FHA loans require a 3.5% down payment.  Conventional requires 3-20% down depending on the full situation.

For a primary residence it's good to have at least 2 times the proposed housing payment in reseves after closing, it's a requirement on some programs and on others it can make qualifying easier.  60% of the tax deferred annuity can qualify, likewise if you put it into a 401k then 60% of the vested portion can quailfy.

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[PixieQueen80]

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@jnydc wrote:

Oh Shane... I have always dreamed of gettign a reply from you ( you think I am kidding...).

I definitely have to do FHA as I am looking in the DC area.  I run about 800 a month in expenses including Student Loans.  Do I have a shot?

Oh, and Shane...keep that winning smile!

---

@ShanetheMortgageMan wrote:

You'll either need a non-revocable employment contract (not just an offer letter) or a paystub showing 30 days of pay before you can use the new employment and it's income to qualify.

Any monthly debt obligations you have are included in your debt ratio - student loans, car loans, credit card minimum payments, personal loans, child support, alimony, IRS repayment plans, etc.  Utilities and similar expenses, such as cell phone, insurances, gym membership (unless reported on the credit report), child care (only a factor for VA loans) aren't considered.

If you are buying in an eligible rural'ish area, then USDA financing might be a possibility if your income fits within the limits, and that does 100% financing.  VA loans also do 100% financing.  FHA loans require a 3.5% down payment.  Conventional requires 3-20% down depending on the full situation.

For a primary residence it's good to have at least 2 times the proposed housing payment in reseves after closing, it's a requirement on some programs and on others it can make qualifying easier.  60% of the tax deferred annuity can qualify, likewise if you put it into a 401k then 60% of the vested portion can quailfy.

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jnydc - Depending on how many people are in your household maybe you can qualify for the HPAP (Home Purchase Assistance Program) for DC.  You can get imformation for the program at www.gwul.org .  Also from the sounds of things if you are not married you would qualify for their IDA program that gives $10.00 for each dollar you save.

Good luck in your search from a fellow Washingtonian!

[PixieQueen80]

jnydc - Forgot to mention that both programs are design to be used as down payment and closing cost monies.  Almost every lender in the area is aware of the programs so you shouldn't have too much trouble in getting one that would tell you how they would work with FHA or even a conventional loan depending on how much you would receive from HPAP if you qualify for it.

[ShanetheMortgageMan]

jnydc - it depends on what sales price range you'd be looking in.