So my wife and I are getting ready to start looking for new home, and we also just found out we are expecting our first child! Our plan going into the new home purchase was to budget on just my income, as we aren’t sure what my wife will want to do work-wise after the baby comes. We are looking at homes in $225-250k range, put down 10%, conventional loan, estimate payment to be around $1700/mo. We both have excellent credit (not sure on mortgage scores but my CC-provided FICOs are 815, hers are 790) and fairly low DTI currently. Here are some of the specifics:
Me — Income $90k, mortgage in my name only $1100/mo (owe $135k, valued $165-170k), no car payment, CCs are PIF each month, total min payments would be about $50, no additional outstanding debts.
Her — Income $35k, car lease in her name only $275/mo, student loans in her name only $275/mo (about $16k balance), CCs are PIF each month, total min payments would also be about $50, no additional outstanding debts.
If we apply only in my name, will they only use debts in my name to calculate DTI? Or the entire debts of the household? Here’s DTIs I have calculated using the estimated $1700/mo new mortgage (check my work?):
My income, my debts, $1750/$7500 = 23% DTI
My income, all debts, $2350/$7500 = 31% DTI
Both incomes, all debts, $2350/$10400 = 23% DTI
At these DTIs will it make any difference how we apply? I know if we include my wife’s income we would probably be approved for a bigger mortgage, but if we don’t plan on needing/using it is there any benefit? Any downsides to doing one way over the other?
Thanks in advance for any insight!
