| How much or a loan can we qualify for? |
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gmbravo
New Member
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Joined: 11 Jan 2009
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| How much or a loan can we qualify for? |
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Hello, i am writing wondering if me and my wife can qualify for a first time buyer home loan? We are 27 years old, have been at our jobs for about 6 years each and in total we make about 75K/year. We have paid off all of our credit cards and have credit scores of 740. The only payment we make currently is for our car payment which should be paid off in about 2.5 years. We currently have saved up 20K. We are looking in the riverside area and homes rage about 230K. Can we qualify for this amount? What are some options so we dont use all of our savings twords a down payment? We were renting before and were payming a 1577 rent for 4 years. Thanks for the advice!
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Sat Jan 24, 2009 1:07 am |
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coaster
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Location: Wisconsin
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Is that Riverside, CA? The economy's really in the dumper out there, isn't it? You can probably find a really nice house for a really good deal these days. No one here can tell you whether or not you can qualify for a loan or the terms of the loan; that's all up to the individual lenders. In these days of tight credit, interest rates are really good, but lenders are generally requiring downpayments. And you don't want to use up all your savings, either -- you need a cash cushion when moving into a house for the inevitable repairs, remodeling, or at least new furniture. If you can find a lender to make a loan at five percent down, I'd suggest going for it. The only way you're going to find that out is by shopping around. I'd suggest avoiding the big banks and mortgage brokers and check out the smaller banks and credit unions. You sound like great credit risks to me; if I was a bank, I'd approve your application. 
~Tim~
Eye Candy : Why Whimsy
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Sat Jan 24, 2009 3:59 am |
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gmbravo
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Yes you are correct, riverside,CA. You can get a nice 4 bed room home that is newer for about 230K. That is why we are wanting to buy since our past rent was pushing $1600, and that was rent alone without any utilities!! Someone was telling me about an FHA loan, where i only have to put down 3-5%. What is this and how would it work?? Would I have to still have PMI insurance??
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Sat Jan 24, 2009 7:49 am |
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oldguy
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Location: arizona
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You would qualify for a 30-yr loan up to about $275,000 max. So a $230k home should be a good fit - maybe a $12,000 DP, some closing costs, and a $220k to $222k loan. That puts your payment at around $1650/m, not too different from your rent.
You would pay PMI for a few years until your equity reached 20% of the value of the home - that is usually best. Some people get 80/20 loans as a way of avoiuding PMI but the high interst and short term on the 20% note usually is more expensive than PMI - and PMI ends sooner.
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Sat Jan 24, 2009 8:54 pm |
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jamesbigger
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Also remember, your credit rating can adversely affect how much you can borrow (if you can borrow at all). It also will determine the interest rate you receive. I’m not sure if they do credit checks here but often times they will.
Kung Zhu
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Sat Nov 13, 2010 5:36 am |
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lorealharder
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With its strong credit card and reserves, that is certainly going to be able to overcome the traditional relations of 28/36. Fannie and Freddie, you would probably go to 50 or 55%, but the mortgage insurance companies likely to be limited to 40 or 45...
Real Estate Omaha
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Sat Nov 27, 2010 10:48 am |
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