topic Re: first time buyer in Mortgage Loans

first time buyer

preci0uz — Wed, 18 Jun 2008 20:50:13 GMT

I'm thinking of purchasing a house in San Diego (CA) within 2 years from now on.

Here is my info

- 22 years old

- Single

- Worked for 2 years for the same company

- Base salary is 75k yearly

- Credit debt $1,500

- FICO TU-615 EX 526 EQ 640

- Credit history is very young. Most of my credit cards are like 6 months old and 1 credit card over two years.

- 1 collectionon Experian but they're going to delete it since it's not mine.

I want to purchase a house anywhere from 200k-250k and probably get 75k additional for repairs and upgrades.

I've gone online and searched on what I qualify for a morgage but it's not 300k!! .

I just don't understand. I've heard of people with less income and that they are approved for higher mortgage.

Also, fico has this chart and I'm not sure that it's correct but it seems a little expensive to be making all those monthly payments.

FICO® score APR [?] Monthly payment * 300k mortgage

760-850 6.172% $1,832 700-759 6.394% $1,875 660-699 6.678% $1,931 620-659 7.488% $2,095 580-619 9.215% $2,460 500-579 9.509% $2,525

From your experience how accurate are those estimates.

I was hoping to pay like $1200 for monthly mortgage.

Any suggestions?

Also, how would I iniciate the process to find out if I'm approved for a mortgage.

Re: first time buyer

Anonymous — Wed, 18 Jun 2008 21:13:18 GMT

A $300,000 Mortgage is like $2,000 a month depending on Property Taxes and Insurance.

The affordability calculators you find online give very conservative estimates. Your mortgage shouldn't be more than 31% of your monthly gross income.....Of course people have qualified for more.

You really can't use those interest rates because who knows what they will be in 2 years. Also there is no way of knowing what lending will look like for mortgages that far in advance. Who knows what will happend between now and 2 years from now.

Re: first time buyer

Mythic850 — Thu, 19 Jun 2008 04:34:15 GMT

@Anonymous wrote:
Also there is no way of knowing what lending will look like for mortgages that far in advance. Who knows what will happen between now and 2 years from now.

No one even knows what they'll look like two weeks from now...

Re: first time buyer

DallasLoanGuy — Fri, 20 Jun 2008 01:49:28 GMT

@Mythic850 wrote:
@Anonymous wrote:
Also there is no way of knowing what lending will look like for mortgages that far in advance. Who knows what will happen between now and 2 years from now.

No one even knows what they'll look like two weeks from now...

well, we know that people who make $75k will most likely not be qualifying or $300k

maybe. but doubtful.

to the op, sorry. but debt ratios are watched a little more closely now. a lot of 'those people' are in foreclosure or very near it.

Re: first time buyer

Anonymous — Fri, 20 Jun 2008 13:27:32 GMT

Here's some basic math to keep in mind.

At 6% interest, every $100,000 is a $600/month payment. That's just the mortgage. Taxes and insurance are on top of that.