I would like to purchase property (first time buyer) in the first quarter of 2016. I am wondering if this is realistic and what can I expect:
Income: full time employment, roughly 88000 gross a year, in same field for several years and with same employer for 2.7 years
Downpayment (current savings): 40500 and growing every month
Roth IRA (possibly use towards downpayment/closing costs): 3500
Other assets: IRA and 401(k): 22000-23000
Debt:
3 federal student loans on income-contingent repayment plan: 23700 total (5000 in one subsidized and two unsubsidized covering the rest)
6 credit cards with total credit limit about 45000, with reported minimal rotating balance (usually a couple of hundred on one card)
Credit scores: 800+ (all three) so I assume that my mortgage scores will be 750+
Questions:
1) How large of a mortgage can I expect to get approved for? I live in Northern Virginia and property prices are rather high here. My current rent is low, 1360 but I was paying 1600 on a lower salary 2 years ago. I may need to opt for either a condo or a townhome, so I will probably have to pay either HOA or condo fees (around 200-300) a month.
2) Other than paying off student loans, what can I do to minimize their impact on the size of the mortgage? Is it better to make a smaller downpayment and pay one off? Consolidate the two unsubsidized to bring the monthy payment for them to about 140 per month? All the loans are currently on income contingent repayment plan. The payment is about 250 for all three but I don't think I will qualify for ICR next year so a standard payment, if not consolidated, would be around 420. Should I even do anything before I talk to a loan officer?
3) Are there any banks that you would recommend that I reach out to? Ideally, I would like to move in or shortly before May (when my current lease expires). When should I start talking to someone or looking at properties?
Thank you for any advice that you can offer!!!
*****Edited to correct a typo.
