Posted on: 12th Dec, 2011 12:32 am
I am a head of household (My wife, and daughter). I am the only working, we are first time –ever- buying house. Here is my financial status:
- Income: $52k a year, being on the same employer for 10 years
- Debit: $27k ..credit cards (2) - Min payment: $520, I try to pay more than min 600-800. One of the credit cards with the highest balance is at %95. But all over all debit to limit is %70.
- Credit Score: avg 725 across all credit bureau
-Car payment: $250
Trying to buy either of the following
Townhouse: $50k on this one I will be saving money compare to my rent now
Townhouse: $85k I will end up paying close to what I do in rent now
House: $130k I will be able to pay a little extra over the 2nd choice above.
Do you think I am ready for house? Would I be approved for any of the above 3 scenarios
Thank you very much in advance for your time and help!
- Income: $52k a year, being on the same employer for 10 years
- Debit: $27k ..credit cards (2) - Min payment: $520, I try to pay more than min 600-800. One of the credit cards with the highest balance is at %95. But all over all debit to limit is %70.
- Credit Score: avg 725 across all credit bureau
-Car payment: $250
Trying to buy either of the following
Townhouse: $50k on this one I will be saving money compare to my rent now
Townhouse: $85k I will end up paying close to what I do in rent now
House: $130k I will be able to pay a little extra over the 2nd choice above.
Do you think I am ready for house? Would I be approved for any of the above 3 scenarios
Thank you very much in advance for your time and help!
Generally to be eligible for a home loan you must be able to meet a few requirements, Good Credit, Ability to make down payment, seasoned funds in your banking account, steady employment with verifiable 2 year work history, provable income. Then the underwriter will use a debt to income ratio. Taking up to 50% max of your gross income. So if you make 52k year, then $4,333 is your monthly income and then 50% is $2,166, this number means your total debts including your mortgage, tax, insurance, car payments, credit cards, hoa dues etc must be less than this number. So if you have 600 in debt, then $2,166 - 600 = $1,566 left over for the mortgage, tax insurance, mortgage insurance, and any HOA dues. Typical loan at 100k is $520.00 a month. Including taxes, insurance, mortgage insurance and estimate for HOA, your total payment would be roughly $1,000, I think you would be safe in this price range. Good luck.
I see nothing so far that makes me think you shouldn't apply
