@Anonymous wrote:Hello, I will be a first time homebuyer and looking to purchase a home in CA within the price range of $450,000-$500,000. We are looking at new constructions in Riverside/San Berndardino County. I will be buying with my spouse, and could use some advice.
Here is a little background of our financial and credit situation:
My current income: $45,000
My spouse's current income: $80,000-$90,000 (could go up to 90,000 with bonus)
Current combined income: 125,000-130,000
Last year our combined income was 96,000
My middle mortgage score is 728 and my husband's is over 770, so mine will be the one that gets used
No credit card debt (we have 2 credit cards (25,000 limit total with a balance of 0))
Two student loans (monthly payment for mine is 133 and his is 160)
We also had two car loans that have been paid off and closed with exceptional payment history
We have 70,000 saved (and will have closer to 90,000 by the end of the year) and plan to down 10%, and keep the rest for reserves
Owning a home has been a dream of mine for the longest and I feel like we are heading in the right direction to purchase our first home, however, there are a few things weighing heavily on our mind. Many, many years ago, I was financial irresponsible, and had a series of late payments on 4 credit accounts. All 4 accounts are closed and reflect paid as agreed. The earliest series of late payment started in Nov 2013 and ended in early 2017. I have learned from my mistakes, and my payment history on my current accounts have been exceptional the past 3 years.
I have never applied for a mortgage loan and was wondering if these series of late payments will cause me to be denied? And if we just put the loan under my husband's name (his credit is good), will his income alone qualify us for a home in the 450000-500000 range? Also, should we save up more money before even trying for a pre-approval?
All thoughts and suggestions would be so appreciated.
https://www.nerdwallet.com/mortgages/how-much-house-can-i-afford
I used this website above and plugged in all your info with a gross income of 135K you could comfortably afford 700K with 50K down. You can try it and play arounnd with the numbers. Try and goodwill your lates.
