topic Re: Could I get approved for a mortgage? in Mortgage Loans

Could I get approved for a mortgage?

Twix — Sun, 07 Sep 2008 06:23:16 GMT

Hello all,

I am wondering (before I walk in to a bank and potentially embarass my self) if I could be approved for a mortgage potentially? I keep reading they are being very strict on approvals right now.

Basically I have never owned a home. I have always rented, and I am tired of it. So I would like to own a home.

I have been in my current job as a department manager at a major retailer for three years, however I only make 25K/year. (I am in a somewhat rural area in the south, so cost of living is not that horrible)

I have no negative information on my credit reports. I have 18 positive tradelines with zero balances. My FICO scores are all around 750. I have 6K debt on an unsecured personal loan. That is my only debt.

I am looking at a 75K condo. I am wondering, if I was to put down 10-20% of that amount, could I possibly get approved for a mortgage?

Message Edited by Twix on 09-06-2008 11:23 PM

Re: Could I get approved for a mortgage?

Anonymous — Sun, 07 Sep 2008 07:06:16 GMT

What is the loan payment per month.

With high scores and no other installment debt you couldbe in the ballpark for what you are looking at. Go for 20% down so you can avoid PMI and it will be alot easier. Wtih 750 and 20% down I would think you would be in pretty good shape assuming that the personal loan payment is not too high. If it is, then maybe pay it off and do 10% conventional loan and get the PMI dropped when you get it paid down some.

Re: Could I get approved for a mortgage?

Twix — Sun, 07 Sep 2008 16:56:31 GMT

The personal loan I pay $140/month on.

Re: Could I get approved for a mortgage?

Anonymous — Sun, 07 Sep 2008 17:03:57 GMT

It is possible depending upon the specifics of the deal. One thing that woudl concern me in staying under DTI is that condo's often have very large HOA fees and these will get counted into the DTI. So, say you basicly have 900 per month to pay for all debt. That leaves 760 for mortgage debt after the loan is paid.

S0....

75000 minus 20% down leaves 60000

60K at 30 year fixed at 6.75% = 400 per month

400 per month + insurance and taxes +hoa needs to end up under 760. Which seems likely, but if you put less than the 20% down not only does the payment go up, but then PMI kicks in.

The kicker would be knowing the tax rate for the area as well as the HOA fees involved. I have seen inexpensive condos with 220 perm onth HOA's.

Re: Could I get approved for a mortgage?

DallasLoanGuy — Mon, 08 Sep 2008 02:35:42 GMT

Twix wrote:
Hello all,

I am wondering (before I walk in to a bank and potentially embarass my self) if I could be approved for a mortgage potentially? I keep reading they are being very strict on approvals right now. <= absolutely 100% false. It is as easy to get a loan today as it was a few years ago if you can verify income.

Basically I have never owned a home. I have always rented, and I am tired of it. So I would like to own a home.

I have been in my current job as a department manager at a major retailer for three years, however I only make 25K/year. (I am in a somewhat rural area in the south, so cost of living is not that horrible)

I have no negative information on my credit reports. I have 18 positive tradelines with zero balances. My FICO scores are all around 750. I have 6K debt on an unsecured personal loan. That is my only debt.

I am looking at a 75K condo. I am wondering, if I was to put down 10-20% of that amount, could I possibly get approved for a mortgage?

Message Edited by Twix on 09-06-2008 11:23 PM

apply!!

Re: Could I get approved for a mortgage?

Anonymous — Mon, 08 Sep 2008 03:35:36 GMT

Twix wrote:
Hello all,

I am wondering (before I walk in to a bank and potentially embarass my self) if I could be approved for a mortgage potentially? I keep reading they are being very strict on approvals right now.

Basically I have never owned a home. I have always rented, and I am tired of it. So I would like to own a home.

I have been in my current job as a department manager at a major retailer for three years, however I only make 25K/year. (I am in a somewhat rural area in the south, so cost of living is not that horrible)

I have no negative information on my credit reports. I have 18 positive tradelines with zero balances. My FICO scores are all around 750. I have 6K debt on an unsecured personal loan. That is my only debt.

I am looking at a 75K condo. I am wondering, if I was to put down 10-20% of that amount, could I possibly get approved for a mortgage?

Message Edited by Twix on 09-06-2008 11:23 PM

Contact your local hud housing coordinator as you might be able to get downpayment assistance and first time home buying mortgage rates with your salary.