topic Re: Would I qualify for a max 105K loan? in Mortgage Loans

Would I qualify for a max 105K loan?

Anonymous — Wed, 13 Feb 2013 15:02:32 GMT

I make approx. $31,500 a year. Have had my job for 5 yrs. now.

I live in Georgia and will be applying for the GA Dream Homeownership Program and will also apply for their $5,000 down payment assistance program. This will be with FHA requirements. With this program, I would get a fixed interest rate of 3.000%. Also, I would only need to have $1000 to contribute to the loan transaction, whether it's for appraisal or whatever the case may be......

I have 4 Accounts:

'QVC' Limit: $700 - $592 balance - $25 min. payment

'CareCredit' Limit $2000 - $1400 balance - $105 min. payment

'B of A Credit Card' Limit $1100 - $650 balance - $25 min payment

'Sallie Mae School Loan' - min. payment $100.00

Oh, I have one small bill in Colections for $85. Will pay that off.

What are my chances of getting approved for a 100k loan?

Re: Would I qualify for a max 105K loan?

Anonymous — Wed, 13 Feb 2013 15:05:17 GMT

I think you may have an issue with your DTI.

The home purchase price isnt to bad, but your balances owed may cause you issues. You may want to start by paying off the debt owed.

Re: Would I qualify for a max 105K loan?

Anonymous — Wed, 13 Feb 2013 15:09:20 GMT

I can definitely pay off the QVC, CareCredit, B of A Credit Card, and the small collections. If I do that, would I have a better chance?

Re: Would I qualify for a max 105K loan?

Anonymous — Wed, 13 Feb 2013 15:11:36 GMT

Yes as far as your DTI is concerned.

You still have to qualify with scores, etc etc..

I would pay off all you can and leave a balance of $10 on just one CC. You will see a boost in your scores from this also.

Re: Would I qualify for a max 105K loan?

Anonymous — Wed, 13 Feb 2013 15:13:49 GMT

Oh, my credit scores are over 640, if that helps.

Re: Would I qualify for a max 105K loan?

Anonymous — Wed, 13 Feb 2013 15:28:47 GMT

Your credit is approvable, so bringing down your DTI is your goal, since your income is on the lower side. You will be thankful your debt is paid off once you start making home payments, and buying new things for the home.

Bringing down your DTI will also help with improving your credit also.

You should have no issues once your DTI is down.