any similar circumstances to emulate? finding mortgages in G

godfreycollman · Joined: 17 Apr 2008 Posts: 2 1.61 Dollars($)

any advice for someone with fair credit making 47k with 1200 monthly debt to purchase a house in GA? relocating from NY?
also with 8k down looking at home valued to 175k?

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi godfreycollman,

Welcome to the forum.

If you have good credit and good employment history then you may approve for a mortgage. BTW are looking to stay here for a longer period of time? If so then you can think for ARM. Otherwise you should better go for FRM.

I think you should shop a bit for lenders to get better rates and terms.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Guest

thanks....looking to stay in GA...what about ARM and FRM?

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi godfrey,

Welcome back.

FRM is fixed rate mortgage and ARM is adjustable rate mortgages. If you want to know the difference between ARM and FRM check out this article at http://www.mortgagefit.com/fixed-adjustable.html

Feel free to ask if you have any further questions.

Best of luck,
Larry

jeffselan · Posted: Fri Apr 18, 2008 1:23 pm Post subject: High DTI

Godfrey:

I think you are looking for too much house for your debt and income.

With a 6% rate and a 167,000 loan amount, your debt to income ratio is a shade over 61.5% on a 30 year fixed.

Speak to a lender that can find out your local taxes and home owners insurance averages. I used $200 a month.

You also need to sit down and talk about your credit to see what constitutes "fair"

Hope this helps

Samantha · Posted: Sat Apr 19, 2008 3:29 am Post subject: RE:

Hi Jeff,

Very aptly said...one has to find out what's fair credit - what's the score and if there are negative items on the credit report. Moreover, one needs to determine the debt to income ratio.

Godfrey, i did calculate your debt to income though with the little information that you provided here. If I consider your monthly debt payment as $1200 and your annual income as $47000, the debt to income ratio comes out to 31%. I suggest you do the calculations again with the acuurate figures using the Debt-to-Income Ratio Calculator . That's within the 36% ratio required for any conventional loan. So, hopefully you may qualify for a mortgage. But off-course you'd have to check out with other factors such as your credit score, any negative items on your credit, your liabilities etc.

Now, just in case you're not sure of which mortgage to go for, go for a free consultation on the right loan from our community lenders.

Hope this helps...

God bless you.

Samantha

godfreycollman · Joined: 17 Apr 2008 Posts: 2 1.61 Dollars($)

..for the knowledgeable replies people..i will continue to monitor for more useable information. Thanks again...

gmakerley · Posted: Sat Apr 19, 2008 6:26 am Post subject:

godfrey, if we read you correctly, the $1200 is in existence before taking into account a new mortgage. that being the case, i agree with jeff's analysis of your situation.

honestly, you might qualify for a mortgage in the price range you've mentioned if you can eliminate and/or pay down - in large part - that $1200 of monthly obligations.

Guest

thanks George, but that debt is support for my two kids...whom are the reason why i'm looking to buy and relocate...i can't pay down on it..

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