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How much house can I afford

Posted on: 05th Aug, 2010 06:10 pm
Hi!
My income is 42000 /year base pay. I was told that my overtime would not count toward my qualifications for a loan (overtime makes my yearly income 63000). Is that true?

I am looking at a beautiful move in ready foreclosed property listed for 174,900 (background: was listed for 185,000 bank owned; power was shut off, therefore sump pump not working and the crawl space developed mold, totally remediated, with a warranty for the mold issue only)
Can I afford this house? How low of an offer do banks accept on a house that is fixed up, new appliances, but with a known remediated mold issue

Thanks
Hi ashmaemac,

As far as my knowledge is concerned, your overtime income should be considered as a part of your income while the lender considers you for a loan. If your present lender is not ready to consider your overtime income, I would suggest you to speak to some other lenders and check out their opinion in this matter.

In order to know whether or not you can afford the house, you can check out the given calculator:
http://www.mortgagefit.com/calculators/howmuch-afford.html

This will help you know the monthly mortgage payment and the required monthly income.

Thanks
Posted on: 05th Aug, 2010 08:48 pm
Posted on: 05th Aug, 2010 09:04 pm
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