Posted on: 16th Feb, 2011 04:23 am
Hi,
My wife and I are currently considering to buy our first home. We both have pretty good credit (730-740) and our combined income is $140,000.
I'm a bit concerned because one, my wife was in school last year so there was no income. (She started working again September 2008)
I was working, but made a lot less than I do now. (2007 - 2008 income of 55,000 vs current income of 75,000)
The houses in our area are on the high end (near NYC) so we're looking at roughly a $500,000 house. (could be a bit higher or lower)
We are planning a 10% down on the house (have about $70,000 saved, but want to keep a bit for emergency)
So.. Now that I have spilled out my full background, i'm curious as to how easily will we be able to get a mortage? And if so, what are the rates going to be roughly, and what kind of documentation should we prepare for? We're going to actively look at houses starting next week, and hopefully close by september (our rent ends in october)
Any help will be very helpful! Thanks!
My wife and I are currently considering to buy our first home. We both have pretty good credit (730-740) and our combined income is $140,000.
I'm a bit concerned because one, my wife was in school last year so there was no income. (She started working again September 2008)
I was working, but made a lot less than I do now. (2007 - 2008 income of 55,000 vs current income of 75,000)
The houses in our area are on the high end (near NYC) so we're looking at roughly a $500,000 house. (could be a bit higher or lower)
We are planning a 10% down on the house (have about $70,000 saved, but want to keep a bit for emergency)
So.. Now that I have spilled out my full background, i'm curious as to how easily will we be able to get a mortage? And if so, what are the rates going to be roughly, and what kind of documentation should we prepare for? We're going to actively look at houses starting next week, and hopefully close by september (our rent ends in october)
Any help will be very helpful! Thanks!
If one is in school before going to work or back to work, that is ok to use present income. Part of the documentation process is getting copy of diploma or transcripts to verify one was in school.
Your current income is ok to use as long as a W2 job (as opposed to being self employed) Base salary is fine. If you are talking commissions, bonuses, ect, we would have to discuss further.
10% down would be and FHA mortgage or conventional mortgage with Private Mortgage Insurance.
You ask about rates. No one knows what rates will be tomorrow or next week or next month and you are talking about seven months from now.
If you purchase around $500,000 and put 10% down, that would be a mortgage amount of about $450,000. That is over $417,000 which makes the mortgage rate a little higher than it would be if your mortgage was $417,000 or lower. Rates to day range from 4.75% to 5.25% and zero points.
Your current income is ok to use as long as a W2 job (as opposed to being self employed) Base salary is fine. If you are talking commissions, bonuses, ect, we would have to discuss further.
10% down would be and FHA mortgage or conventional mortgage with Private Mortgage Insurance.
You ask about rates. No one knows what rates will be tomorrow or next week or next month and you are talking about seven months from now.
If you purchase around $500,000 and put 10% down, that would be a mortgage amount of about $450,000. That is over $417,000 which makes the mortgage rate a little higher than it would be if your mortgage was $417,000 or lower. Rates to day range from 4.75% to 5.25% and zero points.
With your good credit you should be able to get financing, however, lenders are much tighter with qualifying for a mortgage. The important thing is how much can you afford and still live comfortably and still save for emergencies. In away it may be good to try to get qualified just off of your income. Question is what type of work was your wife doing before school and is it the same line of work now. If not they may just use your income and not her's. Usually lenders like a two year work history. You may have to look at houses that are not so expensive or continue to save for a larger down payment. 10% is good but most lenders will want 20% if not 30%. There are some major changes coming for the mortgage industry and how lenders finance. You also may want to look at short sales, bank owned properties. IF you look hard enough you should be able to find a good deal.
