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

Can I buy a house with my credit score and income?

I want to make sure I have all my bases covered before I go see a lender. I'd like to buy a house now while the market is in my favor I am just not sure a bank will give me a loan. My credit score is 630-650 based on what report I pull. I have a good job working in IT and I just graduated college last saturday so My c chances of getting promoted are good. Currently I make about 43000/yr and I have 13,000 in my savings account. Ive been good with all my credit cards. I have 5 and all but one are sitting at a 0 balance and the one that has a balance on it I plan on paying down it's at about 40% max right now. what should I be doing to get ready to buy and do I even make enough money? what would be your guess as to how much I could get approved for. also my accounts are in both mine and my fiance's name but we don't want her on the loan because she is a owns her own business and her income is obviously not stable and she hasn't been doing that for more than 3 years so her income wouldn't count anyways we've been told. should we change the accounts to just my name? Thanks for you help. Also we already know we want an FHA loan. so the 20% down doesn't apply thanks!

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  • ?
    Lv 6
    1 decade ago
    Best Answer

    you could probably get up to $160k,

    but it depends on how much other debt you have, car loans, and how much is on your credit card. they won't take into account your chances of promotion. you should try to pay off your credit card before you apply for a loan, but you should go in for a pre approval to get a better idea. They won't pull your credit score to do this.

  • Anonymous
    5 years ago

    I'm confident that you might find all financial clarification at= loanfocus.info-

    RE Can I buy a house with my credit score and income?

    I want to make sure I have all my bases covered before I go see a lender. I'd like to buy a house now while the market is in my favor I am just not sure a bank will give me a loan. My credit score is 630-650 based on what report I pull. I have a good job working in IT and I just graduated college last saturday so My c chances of getting promoted are good. Currently I make about 43000/yr and I have 13,000 in my savings account. Ive been good with all my credit cards. I have 5 and all but one are sitting at a 0 balance and the one that has a balance on it I plan on paying down it's at about 40% max right now. what should I be doing to get ready to buy and do I even make enough money? what would be your guess as to how much I could get approved for. also my accounts are in both mine and my fiance's name but we don't want her on the loan because she is a owns her own business and her income is obviously not stable and she hasn't been doing that for more than 3 years so her income wouldn't count anyways we've been told. should we change the accounts to just my name? Thanks for you help. Also we already know we want an FHA loan. so the 20% down doesn't apply thanks!

  • kja63
    Lv 7
    1 decade ago

    1. Close most of your credit cards. You have too much open credit that you could run up and get yourself in trouble. Open credit counts against you, so even if you have zero balances, the lender will still count the available credit on all of those cards against you.

    2. Your mortgage, taxes and insurance can be no more than $1,000 a month. That's not a lot to work with. Depending on the area of country you live in, that means a home for around $75,000.

  • You are good for an FHA loan, the minimum credit score is 620.

    If I were you, I would go ahead and make application with a lender and see what they come back with. Worst case scenario, they are going to pull your credit which may bring your score down. Other than that, there is no risk in applying.

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  • 1 decade ago

    It looks good for you up to about $130,000 (three times your salary). Expect to pay about .5 to .75% higher than the rate you see on bankrate (those rates are scores of 720 and above and conventional). Closing plus down payment will run you about $9K (3.5% for down payment and about 4% for closing - try to talk the seller into paying some of the closing if you can).

    If you want to save money up front, close towards the end of the month (the tax/insurance prepays are lower because of fewer days left in the month). Technically, in the long run it works out the same, but the money you postpone paying by closing at the end of the month gets paid back with cheaper dollars (a dollar spent or saved now is worth more than a dollar spent or saved 5 years from now).

  • 1 decade ago

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

    Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some use to you, good luck

    "FIGHT ON"

  • Anonymous
    1 decade ago

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  • 1 decade ago

    you will probably get a loan but your interest rate wont be the greatest since your credit is just barely average, but it depends on the lender so do some research

  • 1 decade ago

    Well your fiance's income will count if you wish as 24 month average is used. But yes with your scores and 3.5% down you can buy a home.

  • Anonymous
    1 decade ago

    Expect to put all of your liquid assets into a down payment and still have a fairly high APR. I would wait just a little while, bring your score up to 700 and also have about 10% of the cost to put down.

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