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DTI

Posted on: 08th Nov, 2006 03:04 pm
I am writing to ask for some help....
I am now living in Calif, do not own a home, have worked at Sears for 27 years, and as of right now my credit score is at 614.
My wife is from Canada and this month will get her SS card and start working...
I have a chance to transfer to Sears in Medford this coming month.
The sole reason to move to Oregon is to be able to afford to buy property and a manufactured home.
Now my concern is the DTI ratio to buy a home, as my salary will go down working at the Sears there and I am not ready just yet to buy.
Would it be better to wait a year till I can buy and use my income statements from Calif as it will show more income than it will in Oregon, or would I be able to use my income here to buy?
Also in a years time I will be able to get my score into the 700\'s.
If I stay here with my wife working we should be able to show a income in around 70k instead of what may be in the 50k if we moved up there at this time...
any advice
Thanks in advance
From the information you have provided I feel that you stay at CA to improve your score and then shift.

You can look for a lease purchase option if available in Oregon, and shift right now. This way you would be able to avail a time period to improve your score and then approach lenders for the purchase of the house.
Posted on: 08th Nov, 2006 03:17 pm
" Would it be better to wait a year till I can buy and use my income statements from Calif as it will show more income than it will in Oregon, or would I be able to use my income here to buy? "
Lenders normally check the income for the last two years. So your CA income status will also be taken into consideration by the lenders while judging your eligibility for the loan approval.

But I would also suggest that you do stay over in CA for some more time and improve your income status and score before shifting over to Oregon.

Thanks
Posted on: 08th Nov, 2006 04:04 pm
Hi,

Currently your credit score seems to be average as far as getting a loan for home purchase is concerned. Generally, a value of 620-650 is considered as a fair score for qualifying for a home loan. And, anything above that surely helps one to secure interest rates at which he can afford making payments. So, I feel that you should give yourself some time and improve your score.

"Would it be better to wait a year till I can buy and use my income statements from Calif as it will show more income than it will in Oregon, or would I be able to use my income here to buy? "
You can reside in California for a year, earn good amount of income and save a part of it for the down payment on your new home. While staying in California, you can contact a lender having business in Oregon and qualify for a loan at the current market rate. You can then use the loan and buy a house in Oregon. After a year, you can shift to Oregon and use the home their as your principal residence.

Thanks
Posted on: 08th Nov, 2006 10:22 pm
Hi Guest,

"Now my concern is the DTI ratio to buy a home, as my salary will go down working at the Sears there and I am not ready just yet to buy.
Would it be better to wait a year till I can buy and use my income statements from Calif "
Your income may be reduced in Oregon, but that cannot affect your debt to income ratio provided your existing debt remains unchanged. But your creditors (if any in California) may not allow you to shift until and unless you repay the existing debt.

You can shift to Oregon after a few months within which you can build up good credit. Then you can apply for a loan there. The lender there will consider your income in Medford, as you will not be staying in California at that time.

However, if you stay in California and apply for a loan in Oregon, you may get a higher loan amount compared to what you can borrow if you work in Oregon and apply for the loan there itself. This is because your income in Oregon will be reduced.

Thanks,

Caron.
Posted on: 08th Nov, 2006 11:04 pm
Thanks everyone for your help..
It seems that staying in Ca for another year is the best bet!!
Again..
Thanks so very much for the input!
Jack
Posted on: 10th Nov, 2006 10:13 am
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