Will I qualify for a mortgage loan?

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I need an $ 89,000 loan and I make 1300 a mo and that would basically be my only bill

  1. Reply
    Common Sense
    February 19, 2011 at 12:54 pm

    No it wouldn’t. Eventually you’ll need a car and insurance…utilities etc. No way is 1300 a month enough income. You’ll need to triple that.

  2. Reply
    Lauren F
    February 19, 2011 at 1:02 pm

    If you borrowed $ 89,000 at 6% for 30 years, the monthly payment for principal and interest would be $ 533 a month, plus you would also have to pay for property insurance and real estate taxes, so figure your total bill would be around $ 750 a month.

    Banks will only approve you if your total bill is approximately 1 week’s gross pay. So, it sounds like you are too low right now. If your $ 1,300 is your gross pay, the most a bank will likely approve is about $ 45,000 – $ 50,000 loan, and even that would be a stretch.

    Do yourself a favor. Pretend you have this loan, and put $ 750 a month into a savings account for a year. If you find you can handle this amount, then start shopping for a house. You will be used to the payment, and your savings account will have $ 9,000 in it to use for a downpayment and closing costs.

  3. Reply
    Nash P
    February 19, 2011 at 1:32 pm

    Not a chance, I agree with the above poster though. Try putting away $ 750/month for a year and see if you have to dip into that $ $ any.

  4. Reply
    Beverly S
    February 19, 2011 at 2:27 pm

    No you need more income – also know that the mortgage company looks at disposable income- we have to leave you with enough to pay regular household expenses- food, lights, water etc.

  5. Reply
    February 19, 2011 at 2:54 pm

    Is that $ 1300 gross or net? My mortgage is for $ 56k, and around 4.75% with a payment around $ 300. My income is quite a lot higher than that, and I wouldn’t like a $ 520 payment. I was paying almost twice what I am now, and I didn’t like it.

    Besides the mortgage payment, you have to consider the cost of taxes and insurance, and if your down payment is less than 20% of the purchase price, you have mortgage insurance too. The cost of that is based on the mortgage amount and your credit. There will also be utilities — I frequently get electric bills in the summer that are over $ 200 — and maybe gas, water, sewer (you don’t usually pay for those in an apartment so you may not be thinking of them), phone, maybe cable and/or internet, transportation, medical care, clothes, food, and whatever else you buy.

    The biggest thing with a house to me is the maintenance. You never think of how much it will cost to get a lawn mower to cut the grass, or what if the hot water heater conks out? What if your furnace quits on you and it’s 10 degrees outside? You have to be able to handle these kinds of things if and when they come up. $ 15,600 isn’t enough income for that.

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