Do I qualify?

[Anonymous]

Planning to get a home in the next 6-12 months and appreciate any input here. 

1. Mortgage Credit Scores:  

• ~800

2. Credit Negatives: None

3. Gross Income.  ~240k

4. Source of income.  FTE salary

5. Monthly debt payments. 

• 6000; 1600 is current rent, 1600 is refinanced student loan payment. 

6. Employment : Salaried, ~3 years

7. Assets/Reserves: ~40k

8. Location:  

9. Property Description: Single family home

10. Property Value: 300-400k

11. Occupancy:

• Primary residence

12. Transaction Type.  Purchase

[Anonymous]

Planning to get a home in the next 6-12 months and appreciate any input here. 

[Anonymous]

1. Mortgage Credit Scores:  

• ~800

2. Credit Negatives: None

[Anonymous]

3. Gross Income.  ~240k

[Anonymous]

4. Source of income.  FTE salary

[Anonymous]

5. Monthly debt payments. 

• 6000; 1600 is current rent, 1600 is refinanced student loan payment. 

6. Employment : Salaried, ~3 years

[Anonymous]

7. Assets/Reserves: ~40k

[Anonymous]

8. Location:  

[Anonymous]

9. Property Description: Single family home

[Anonymous]

10. Property Value: 300-400k

[Anonymous]

11. Occupancy:

[Anonymous]

• Primary residence

[Anonymous]

12. Transaction Type.  Purchase

[Anonymous]

You won't have any issue getting a prime mortgage rate and are a great candidate to pay off a 30 year loan in 15 years and save a TON in interest.

[Anonymous]

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@Anonymous wrote:

You won't have any issue getting a prime mortgage rate and are a great candidate to pay off a 30 year loan in 15 years and save a TON in interest.

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Even with the high DTI? My total debt is what worries me. Is current rent included in that calculation? I plan to transition from my rental place into the house I eventually purchase. 

[Anonymous]

Unless you plan to keep renting after youve closed (like having two homes I guess?), then no, rent is not part of DTI calculations.

Your presumptive mortgage payment WILL be, however. 

Looking back up at your original post though, your new Mortgage + Taxes + Insurance shouldnt be anywhere NEAR as much as youre renting for, at the price range quoted.  At 400k it gets close, but it drops significantly the closer to 300k you get

300k at 3 percent, 30 year - 1265

400k at 3 percent 30 year - 1605

Bigger down payment could even get you under 1000/month if you get the financed amount down to 275k or less.  And yeah I used a mortgage calculator just now.  >_>

[Anonymous]

I didn't include your rent under the assumption you'd end your lease when you buy.

Your DTI is fine, even with a smaller down payment I can see no reason you'd be denied.  You're an excellent candidate and buying a home for LESS than 2.5X income is a stellar plan.

[trusty]

Here's a DTI calculator that I've found to be quite useful:

https://www.realtor.com/mortgage/tools/affordability-calculator#summary

[Anonymous]

Thanks for the replies