topic Re: Will we qualify for mortgage loan? in Mortgage Loans

Will we qualify for mortgage loan?

izliv — Tue, 28 Apr 2009 17:44:52 GMT

Background: We have owned two homes in the past. We are currently renting (since Aug 08). We moved for personal reasons before selling our home. I changed jobs when we moved but my husband was unable to find full time employment. He now works part-time at nights and on weekends and is a stay-at-home dad by day. We have both held steady jobs up until we moved in August. Our FICO scores are great (me-790's and his is typically 10 points higher). We are moving again to be closer to family and there will be more job opportunities for him. Our only debt is an auto loan and the monthly payment is $275/month. We have approx. $50K in the bank we can use toward a downpayment.

My concern is that without him having full-time employment and with us moving again for the second time in a year, we will not be approved for a loan. He will have part-time employment until he finds a full time job. I have secured a full-time position. My income will be approx. 50K/year.

We would LOVE to buy a home from the start. We know the area well and it is a great time to find some great deals. We have two small children and I can't stand the thought of moving into a rental and then having to move again later.

Thanks for your help/advice!

Stephanie

Re: Will we qualify for mortgage loan?

Anonymous — Tue, 28 Apr 2009 18:18:25 GMT

How much does a home you want cost? If you've had steady employment you can get a mortgage, and if his employment is in his field at all, you can use his income as well. If you have good scores, decent reserves and 3.5% downpayment, you can get a mortgage. The question is not whether, it's how much you can afford and whether that amount will get you a house you really want to buy. If you lived in my city, you'd be fine. NYC or Boston, not as likely.

Re: Will we qualify for mortgage loan?

izliv — Tue, 28 Apr 2009 18:29:41 GMT

We would like to stay between 200-250K. We will be buying in Mississippi so we aren't even close to NY and Boston prices, lol!

Re: Will we qualify for mortgage loan?

Anonymous — Wed, 29 Apr 2009 03:18:27 GMT

The big question is your income. You posted your debt but to calculate DTI you'd need to post your income as well. I'm quite sure you'll get approved for a loan but it may not be enough to buy in the range you'd like even with a huge downpayment.

It's also generally expected that you can show stable income. How long have you both been at your present jobs?

Re: Will we qualify for mortgage loan?

Anonymous — Wed, 29 Apr 2009 03:32:53 GMT

If he has been workign the same part time job for 2 years and could possible transfer to the same company elsewhere or same field they might count his income. If he has hopped from job to job or does not have work lined up then no they will not count it.

At 50K income for your job, you may be able to squeeze in around the 200K mark depending upon your taxes and insurance rates over there.

How much funds do you have for down payment and do you have any reserves.

with high scores and good reserves, you could probably get approved for 225K or so as they will allow you to go higher DTI with those as compensating factors (along with your husbands income if itis not counted for qualifying..)

If Mississippi is not a community property state, you could consider doing a refi on your car loan into just your hubby's name. That would free up DTI.

Re: Will we qualify for mortgage loan?

Anonymous — Wed, 29 Apr 2009 04:52:09 GMT

Unless i'm mistaken, mickie, don't LOs use previous income versus future income?

I didn't see where she stated her current income, only her expected income on a just she just acquired. I don't know how that works but i recall reading here something about not including expected income changes.

Re: Will we qualify for mortgage loan?

izliv — Wed, 29 Apr 2009 22:31:24 GMT

Sorry, my current income is $45,000...before moving from Florida it was just under 60K. I haven't changed job type...I work as a counselor in the public schools. I have been steadily employed for the past 14 years in the same position.

My husband does have the possibility of staying with the same company and in the same line of work.

Does that help?