closing. I have a high 700 or low 800 credit score. My income is 84000/yr. Total monthly debt is 800. Given the current mortage crisis, will I be able to qualify for a loan?
Anonymous
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You will easily qualify. This is a buyers market right now. Houses are going for far less than they are worth, and im sure as long as you go with the right lender, you wont have any issues getting into this house. With that yearly income, you could qualify for a much higher loan. Dont sweat it.
Anonymous
Houses do not have price tags. The selling price is whatever the buyer and seller agree upon, and should always be negotiated! This protects you as a consumer in many ways.
Just doing some rough calculation I see no issues with you qualifying comfortabtly for about $1500/mo in PITI (Principle, interest, tax, insurance (using 33% of your monthly income minus the $800 monthly debt). You may very well qualify for more but this is what has gotten many a homeowner into trouble in the past.
Regarding the downpayment, it is only about .05 percent of that selling price is is probably going to go towards fees anyway so you're looking at at least 100% financing, where your good score helps you greatly. Good job, and good luck!
Patrick G
You can go to a mortgage broker and he will get you a loan. There are lenders that will still do 100% financing and let the seller pay up to 6% of your closing costs. You will qualify for a 30 year fixed and they are in the low to mid 6's. You should have him tell you about the 80/20 or the loans with PMI. Sometimes it is cheaper to pay the PMI since you can write it off now days.
Good Luck
Anonymous
that's pretty high monthly debt - the seller is usually not allowed to pay ALL closing costs - there are some the buyer is required to pay - you may need a few 1000 more in cash
Anonymous
I recommend that you prequalify with a lender - they will let you know what the maximum loan is that you can afford. With less than 10% down, they may require you to carry PMI.