Posted on: 12th Mar, 2013 12:37 am
I want to buy a home with a mortgage for 30 years. I want to go for the "fixed rate" option. I think. I have $25,000 available as a down and make around $65,000 annually. Do I have a shot at being approved for a mortgage?
You have mentioned as to what type of credit scores you have. It will be better if you could get in touch with the local lenders and apply for a mortgage. They will look into your financial and credit situation and let you know whether or not you will qualify for a loan.
Rule of thumb for financing, lenders will want your Debt to Income, DTI, to be under 45%, so if you make 65k, thats $5,416.67 per month, take 45% of that which is $2,437.50. That is the maximum your TOTAL debts can be, including the mortgage principal and interest, taxes, insurance, any HOA dues and any debt that is on your credit report, such as car payment and credit cards. So if you have a $1,000 in monthly debt, then your max mortgage payment with tax, insurance and HOA is $1,437.50. A loan officer will go over all this with you and pull your credit and take a look at your tax returns to see what you really qualify for. Good luck
