Looking to buy in the future.. thoughts on my situation?

Guest 0.10 Dollars($)

I have a lease that I am sharing with my mother and will be ending in the near future.

My FICO mid last time I checked was 665; though I have paid off two loans since then, and decreased debt notably; the score should have increased a bit.

My salary at the moment is $42,000 (~$3200/mo gross), which I expect to increase to $45,000 prior to looking to buy.

My monthly debts amount to a total of approx $300. This entails two installment loans only (car and motorcycle). No revolving debt.

I will have approx $5,000 available for closing costs, and around here most sellers are offering closing cost assistance.

I am looking to purchase in the $170,000 range. (Northern VA, expensive area).

Any thoughts on making this happen? This is the ideal time for me to purchase as the market is soft, my income is steady, I have limited my debts, and I imagine I will be in this area for a good while. Is it doable? Am I in over my head and need to stick with a lease?

Thanks!

Guest 0.10 Dollars($)

Also worth mentioning that the montly gross mentioned above does not factor in additional weeks in the month. Annual salary / 12 = $3,500/mo.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

With the information you have provided, there should not be problem with going ahead with the purchase plans. At 665 your credit score is good. If you income is documentable then you are in with good chance to qualify for good rates.

But how much down payment you would be able to make? Are you looking for 100% ltv or something lower than that? Your debt to income ratio will also be one important factor. If it is also not very high then start contacting mortgage companies to know what rates they are offering.

Guest 0.10 Dollars($)

It would likely need to be 100% LTV depending upon what closing costs are offered by the seller, and my annual bonus this fall.

The income is documentable, and can be documented for the past two years, however I have only been with my current employer for about 8 months at this point.

Any problems that arise from that? I forsee the biggest issue is my DTI ratio, but with a raise, and if I can keep the rate down, it should not be too bad.

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.40 Dollars($)

Guest 0.10 Dollars($)

Depending on insurance / tax and the actual value, I'm looking at pretty reasonable numbers. About $1450/month for all my debts total.

Been in the same field since I graduated high school Smile

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Yarr,

You can find out your debt-to-income ratio by using this calculator http://www.mortgagefit.com/calculators/diratio.html

Guest 0.10 Dollars($)

Hmm. 41% DTI assuming a $1150/mo mortgage payment (right around what I've been coming up with).

Any further thoughts based on that?

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.17 Dollars($)

With 41% dti, 665 credit score and the documentable income you have, expect to get mortgage offers with good rates.

Have you started contacting mortgage companies?

What kind of offers are they giving?

As you are staying for sometime now, look at frm if possible, in the long run they are better prospect than arms.

0.10 Dollars($)

FRM is the plan if I can make it happen. I am not contacting anyone thus far; I am thoroughly researching what I'm getting into mortgage-wise before I fill out any applications or paperwork. Smile

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.17 Dollars($)

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