Posted on: 20th Feb, 2010 05:32 pm
We want to sell our current home and buy another. We have a DTI score of 39%. Can we prequalify while we try to sell our home before buying a new one?
Yes, you can get a mortgage approval with a 39% DTI. Should not be a problem as long as you do not have all kinds of other "credit skeletons" in your closet.
You are welcome to prequalify anytime.
The credit score needs to be 620 or higher. You already know your debt ratio is 39%?? How do you know the debt ratio? Do you already know the amount of your next mortgage?? The mortgage payment is part of the debt ratio calculation. If you already know it and your credit score is over 620, no need to prequalify. You are qualified.
If you do NOT know your next mortgage amount, and, you want to prequalify to determine what mortgage amount you can get so you then add your down payment and have your next purchase price, then prequalify.
The credit score needs to be 620 or higher. You already know your debt ratio is 39%?? How do you know the debt ratio? Do you already know the amount of your next mortgage?? The mortgage payment is part of the debt ratio calculation. If you already know it and your credit score is over 620, no need to prequalify. You are qualified.
If you do NOT know your next mortgage amount, and, you want to prequalify to determine what mortgage amount you can get so you then add your down payment and have your next purchase price, then prequalify.
well said, john. for someone to know the debt ratio before moving forward on a purchase of a new home, it would seem they'd have had to have been prequalified already.
if that 39% ratio applies to the existing indebtedness, then it won't have anything to do with the future indebtedness, since the existing mortgage payment will be gone, replaced with the new.
sometimes of course we just get these posts pulling our chains.
if that 39% ratio applies to the existing indebtedness, then it won't have anything to do with the future indebtedness, since the existing mortgage payment will be gone, replaced with the new.
sometimes of course we just get these posts pulling our chains.
