Would a bank qualify us for a home loan?

Deal Score0

Thinking about buying a condo with my fiancé in Los Angeles…Do you think we will qualify and about how much?

His Score EX 750
Mine EX 710
No negatives

INCOME
Gross income combined is 51k
My fiancé makes another 4k a year but is not reported or taxed…I know this won’t help us.

EMPLOYMENT
I am done with school and I am currently working in the same field I studied. I have been working with my current employer for a year and 3 months. Prior to that I worked at another company in the same field for 1 year.
My fiancé has been at his employer for a year and 6 months. Before that he worked for a sporting goods store for 3 years.

DEBT
Together the only debt we have is a 239.00 monthly lease payment on my car.
No school loans.
We have plenty of Credit cards but all balances are very small and paid off every month if any.
I also contribute $ 100 a month to a IRA retirement account.

ASSETS
25000K in savings to spend on down payment AND closing cost.
My fiancé has a 2006 truck with 15k mileage –Paid off… (I don’t know if that counts)

I have been looking at those online mortgage calculators but I don’t know how true they are.

Let me know what you guys think… THANKS!

2 Comments
  1. Reply
    golferwhoworks
    February 1, 2011 at 8:08 am

    you will qualify for a loan on the reported income alone. Of course the debts owed monthly will count against you in your debt to income ratio
    I am a mortgage banker in TN & KY

  2. Reply
    Prosperity66
    February 1, 2011 at 8:50 am

    Firstly, you need to figure out how much money you will borrow – don’t make the mistake to borrow an amount that you are unsure to afford to pay.

    Once you determine the amount, you could consult a lender (a traditional one is better) and ask for an estimate for financing costs and the conditions you can expect in regards to your loan after the lender has reviewed your credit score.

    If the conditions offered do not meet your expectations, do not hesitate to find a better offer.

    The common rule of thumb is that when purchasing a house you want to look for one whose total annual repayment does not exceed a third of your annual wage.

    Remember that your home mortgage payments can be higher than you paid for rent but there are also additional things to pay when you become a homeowner: property taxes, homeowners insurance policy as well as higher charges for utilities.

    Hope this helps 🙂

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