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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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purchasing home question...
ok, so....if you have excellent FICO score, like 780 (highest is 850) and a lot in savings...and you take home a little over 7000 a month...no student loans, absolutely no credit card debt...
....butttttt you have car payments....and owe 7,000 on one car, and 16,000 on another...
...you're still kinda screwed, right? lol
did anyone pay off one car before even finding out how much you qualify for?
ive played around with those mortage calculators, and it says you'd qualify for a house in the 280k range...
any advice?
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Posted 11/5/09 9:14 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
rkoenke
my little piggys
Member since 3/08 4315 total posts
Name:
rachel
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Re: purchasing home question...
with those i numbers, i can't see a problem at all. you may have more issues with having no credit cards during this economic standing...
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| Posted 11/5/09 9:24 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: purchasing home question...
Redo the numbers using your gross salary. That is what the lenders go by. They look at gross salary, not take home.
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| Posted 11/5/09 9:31 PM |
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HotAir
LIF Toddler
Member since 8/09 391 total posts
Name:
Lisa
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Re: purchasing home question...
I think you will be fine. Your debt to income ratio is probably lower than you realize since you don't have credit card debt and student loans.
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| Posted 11/5/09 9:31 PM |
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SummerMom
Now a mom of 2!
Member since 6/07 4970 total posts
Name:
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Re: purchasing home question...
I agree, you'll be fine. You said "take home salary" but banks look at your gross salary. So if your take-home salary is 7000, your gross has to be over $10,000. Let's use $10,000 as a conservative example. With a good credit score, the bank will lend you enough so that your PITI (Principal, Interest, Taxes, and Insurance) plus all other debts total 40% (or even a little more) of your gross. That's $4000 a month. Conservatively.
Don't worry about how much your car costs - how much are your car payments per month? Let's say it's $400. If so, the banks will lend you enough so that it works out to $3600 per month (that plus the car payment = $4000). That means a mortgage of WAY over $280,000 - probably 100K more. So that, plus your down payment, puts you very comfortably in the $350,000+ range.
Play with those calculators again, and make sure to use your gross salary. You'll see.
Message edited 11/5/2009 9:53:02 PM.
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| Posted 11/5/09 9:46 PM |
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rileysmama
needing a vacation..!
Member since 10/09 2162 total posts
Name:
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Re: purchasing home question...
thanks!!
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| Posted 11/5/09 11:39 PM |
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