Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 decade ago

Will we get pre-approved for a home mortgage?

My husband and I have a combined income of 40,000. He works part-time and is in grad school and I work full-time. We want to purchase a home in Hampton Roads Virginia for no more than 170,000. Our debts a month is one 370 car payment and 421 for my consolidated student loans. His car is payed off already. My question is how hard would it be for us to get pre-approved. Our credit cards will have $1000 combined once we go for approval in December. The one thing I am concerned is I have undergrad student loans in my name but my parents are paying off my undergrad loans. How will this affect pre-approval and is there something i could do to show the lender that the loans are being paid for by my parents. I'm worried about the debt-to-income ratio aspect of pre-approval. We also will have $7000 in savings by December when we go for pre-approval.

Update:

Both our credit scores are in the 700s.

Update 2:

Also, we are using a VA loan. Husband is in the Reserves, we already have certificate of eligibility

Update 3:

Thanks for all your advice. I wanted to clarify that I wasn't particularly going for 170,000 I wanted to stay in the 140s or 150s but was told that you try to get approve for a higher amount that what you really want to buy.

7 Answers

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  • 1 decade ago
    Favorite Answer

    Use this mortgage calculator and play with the numbers. The key is to get enough downpayment to afford the house you want.

    http://www.smartmoney.com/home/buying/index.cfm?st...

    Keep increasing the down payment until you get everything to work out based on your income and the price of the house.

  • Anonymous
    1 decade ago

    I'm sorry to say but there's no way you'd qualify for that loan amount. Your debt to income ratio needs to be under 41% that means that all of your liabilities plus mortgage, taxes, insurance, and PMI needs to total less than $1366 a month. Take out your car payment and that leaves under $1000 and student loans (there's no way to not count the loans toward this even if your parents pay them, the lender has no way to determine how long your parents wll continue to do so and since they're on your credit they will count against you) leaves on $545 toward the mortgage, etc. The payment on $170,000 would be total with ins, etc around $1500 a month. And one added thing in order for part time income to count it will need to be at the same company for over 2 years. I'm sorry, your credit is great pay down some debt and try in a few years when your out of school.

    Source(s): mortgage broker
  • 1 decade ago

    Your parents must be paying on those loans for 12 months & you would have to provide a lender 12 months cancelled checks from your parents to the loans.n Usually, a lender will not consider using part time income unless the job has lasted at least 2 years. You really don't have a lot of income for that price range. You are looking @ $1100.00 house payment + taxes & insurance on $170,000.00 home. Your debt ratio is way too high!

  • 1 decade ago

    I'm sure you will get approved, but maybe not for as much as you are wanting. Certain lenders will have certain standards as far as showing proof that you are not actually paying your student loans. I would go ahead and get the proof of your parents payments for those, so that you can give it to them up front.

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  • 4 years ago

    The final work will come once the loan underwriter receives your credit reports, analyzes then, and then also analyzed your 'debt to income ratio'. Your score is too low, and your husband's score is marginal. As well, do not forget that you must have 3.5% of the purchase price in ready cash as a required downpayment, plus loan origination and closing costs.

  • 1 decade ago

    Hi,

    I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It's legitimate. I came across this company on NBC News Special Edition.Check it out here:

    http://starturl.com/tyjxb

  • 1 decade ago

    You have to take your income and multiply it by 3...that is what the bank will say you can afford.

    GOOD LUCK!!

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