Posted on: 20th May, 2009 07:34 pm
Hi,
My wife and I are currently considering to buy our first home. We both have pretty good credit (730-740) and our combined income is $140,000.
I'm a bit concerned because one, my wife was in school last year so there was no income. (She started working again September 2008)
I was working, but made a lot less than I do now. (2007 - 2008 income of 55,000 vs current income of 75,000)
The houses in our area are on the high end (near NYC) so we're looking at roughly a $500,000 house. (could be a bit higher or lower)
We are planning a 10% down on the house (have about $70,000 saved, but want to keep a bit for emergency)
So.. Now that I have spilled out my full background, i'm curious as to how easily will we be able to get a mortage? And if so, what are the rates going to be roughly, and what kind of documentation should we prepare for? We're going to actively look at houses starting next week, and hopefully close by september (our rent ends in october)
Any help will be very helpful! Thanks!
My wife and I are currently considering to buy our first home. We both have pretty good credit (730-740) and our combined income is $140,000.
I'm a bit concerned because one, my wife was in school last year so there was no income. (She started working again September 2008)
I was working, but made a lot less than I do now. (2007 - 2008 income of 55,000 vs current income of 75,000)
The houses in our area are on the high end (near NYC) so we're looking at roughly a $500,000 house. (could be a bit higher or lower)
We are planning a 10% down on the house (have about $70,000 saved, but want to keep a bit for emergency)
So.. Now that I have spilled out my full background, i'm curious as to how easily will we be able to get a mortage? And if so, what are the rates going to be roughly, and what kind of documentation should we prepare for? We're going to actively look at houses starting next week, and hopefully close by september (our rent ends in october)
Any help will be very helpful! Thanks!
Hi kimminjae,
Your credit score and income look quite good and sufficient to qualify for a loan. A downpayment of 10% is also quite good. I think you have a good chance of qualifying for a loan. If you want to have an FHA loan you can go for it. However, you can also go for a conventional loan. You should be able to qualify for any of these loans.
A fixed mortgage would be an attractive option for you as its current rates are lower than before. The rate for a 30-year fixed mortgage has reduced from 5.03% to 4.99%, while the same for a 15 year mortgage is now 4.63% as compared to 4.80% last week. You wll need various documents to apply for the loan like your complete address for the last 2 years, ssn, copies of previous two years W-2 forms and most recent year-to-date pay stub, most recent statements for deposit account. stocks etc.
If you want to consult this with the lenders, you can seek a no obligation free consultation with the community lenders. They will assess your financial situation, credit score and other factors and will suggest you the right kind of mortgage that will suit your requirements.
Your credit score and income look quite good and sufficient to qualify for a loan. A downpayment of 10% is also quite good. I think you have a good chance of qualifying for a loan. If you want to have an FHA loan you can go for it. However, you can also go for a conventional loan. You should be able to qualify for any of these loans.
A fixed mortgage would be an attractive option for you as its current rates are lower than before. The rate for a 30-year fixed mortgage has reduced from 5.03% to 4.99%, while the same for a 15 year mortgage is now 4.63% as compared to 4.80% last week. You wll need various documents to apply for the loan like your complete address for the last 2 years, ssn, copies of previous two years W-2 forms and most recent year-to-date pay stub, most recent statements for deposit account. stocks etc.
If you want to consult this with the lenders, you can seek a no obligation free consultation with the community lenders. They will assess your financial situation, credit score and other factors and will suggest you the right kind of mortgage that will suit your requirements.
Hi,
As i stated above, my income was much lower last year, and my wife had no income. Will that affect us in any way? if they require our previous tax returns, it'll show that i had an income of 55k, and my wife had no income due to her student status.
and i've been to FHA website... what confuses me is the amount of loan i can get...... we live in nj, beregen county... the three different blocks confuses me...
As i stated above, my income was much lower last year, and my wife had no income. Will that affect us in any way? if they require our previous tax returns, it'll show that i had an income of 55k, and my wife had no income due to her student status.
and i've been to FHA website... what confuses me is the amount of loan i can get...... we live in nj, beregen county... the three different blocks confuses me...
It will come down to what the underwriter uses as the qualifying income after reviewing the difference between now and a year ago. Before you begin shopping for homes contact a lender within our community to see what you qualify for based on your scenario. FHA is make-sense underwriting, you just have to find the right lender/underwriter willing to work with you. I hope this helps...
I'm just curious... Reading the forums, it sounds like qualifying for the FHA loan requires 2 full years of income...
Would they overlook this that my wife was in school (got her MBA in accounting) which she works in now, and my income changed (same area of finance)?
Would they overlook this that my wife was in school (got her MBA in accounting) which she works in now, and my income changed (same area of finance)?