First time home buyer- Preapproved but have a question.

[Anonymous]

We are about right in the same income level. We were preapproved up to $312,000 but we are buying a house for $212,000. The number of bedrooms you can have is dependent on your household size from what I was told. It has to be "modest". We have a family of 5 and are buying a 5 bedroom. They were including TV's and a pool table in the sale, but they had to remove that from the contract because it made the sale excessive. We get them anyway though. I was told no inground pools also.

[Anonymous]

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@Anonymous wrote:
We are about right in the same income level. We were preapproved up to $312,000 but we are buying a house for $212,000. The number of bedrooms you can have is dependent on your household size from what I was told. It has to be "modest". We have a family of 5 and are buying a 5 bedroom. They were including TV's and a pool table in the sale, but they had to remove that from the contract because it made the sale excessive. We get them anyway though. I was told no inground pools also.

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really!? I didn't know the rooms etc mattered. Where was your DTI if you dont mind me asking? 

I am working now to pay down my credit cards completely to knock out some of the DTI. Was the process pretty smooth? 

[Anonymous]

I don't mind at all. Our DTI is sitting at 40.5% with the new mortgage included for that approval, but we just sold our current home today and we paid off $37,000 in debt today at closing from our proceeds. Yes, the amount of rooms did matter. I didnt know that either. We could have up to 5 bedroom with our family size of 5, but I think smaller families couldn't have that many if I remember correctly. The house had to be under 2000 sqft on the main living floor. Luckily this house has a finished basement so total livable sqft is 3200 with it included. We are lucky to have an awesome LO that pushed our USDA loan through in 30 days. He said normally its 45. We busted butt to get everything done. The appraiser is the one that held things up a few days. Just make sure to have any paperwork they ask for turned in same day, or next morning. Our LO said USDA asks for more stuff than conventional or FHA. You will have no secrets after them lol.

[Anonymous]

Do you mind sharing your experience with usda and the process i am preparing now just paying off debt so i only have 2 credit cards left with a total dti of 28% i am single right now getting married in few months should i even put fiance in application she has bad credit and doesnt make enough on paper as she gets alot of cash.

[Anonymous]

The reason for the high interest rate is because your downpayment is going to be low. The credit score limit for a FHA loan is usually around 600. You seem to be fine with a 702. If you could i would trying putting down a bigger downpayment. This would hopefully bring your interest rate down a bit.