Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 3 years ago

What do you think my chances are of getting approved for a mortgage?

I turn 21 in June. My boyfriend is also 21, we are not married yet but are to be. We both have had the same jobs for over 2 years. In the Summer I will be graduating with an associates degree, & he will be graduating from a tech center to be a certified electrician. With these degrees & having consistent jobs, what are our chances of getting accepted for a mortgage?

We have rented an apartment together for about 2 years as well & are never late on utilities/rent.

We don t have too much credit, we don t mess with credit related things. This doesn t mean we have bad credit, just not really any.

Tired of renting terrible apartments & throwing away money on a dump that could be spent on a payment to eventually own something, & a lot nicer of a something.

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  • Lori
    Lv 4
    3 years ago

    you don't have a 20% down payment, you don't have two year's tax returns to show a consistent source of income, and you probably have no credit score of any note

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  • Anonymous
    3 years ago

    if you will definitely not continue to work in the same fields once you graduate, the bank may be concerned about that............and you aren't engaged yet.........a good bank would be concerned about that...

    you need to 'mess with' the credit related things.........you need to establish good credit......having a credit card, using it once per month for groceries you would normally buy and then paying it off as soon as you get the bill helps to establish good credit... have you checked your credit score? use credit karma...

    you fail to mention your incomes, how much you have saved for a down payment and how much a house shall cost...

    typically you can borrow 3x -3...5x your income if you meet the other qualifications...

    realize a house is more expensive with heat and repairs, etc

    if there's any student debt, that shall be considered

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  • 3 years ago

    One problem i see is the amount of time on the jobs. Only 2 years in the eyes of the Mortgage companies is not long enough. And not having a long period of time with credit. So if you want to do this you will need to get married first. Mortgage companies will loan to unmarried couples but they have longer times on the job. And they have a lot longer with their credit lines. So best of luck

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  • 3 years ago

    Go to your bank and ask them this question.

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  • Melvin
    Lv 6
    3 years ago

    i know you didn't ask, but i feel i must say it anyway... i think even if you get approved for a mortgage, you shouldn't do it... first, you are not throwing money away when you pay rent... i used to think that too, when i was young, until i owned my house and realized how much i need to spend on maintenance and taxes... part of what you are paying in rent is freedom... you are so young, the mortgage shall be the ball and chain... your boss mistreats you, your boyfriend changes, you fall ill, but you cannot walk 'cause you'll lose the house... when you are young, you should explore and experience life, not live day to day as a slave to service a mortgage... the bank is making money off of you, and you go into debt...

    being debt free and child free, is something you should enjoy while you still can... enjoy that for a few more years, 'cause you will definitely not get another chance at that for another 30 years...

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  • 3 years ago

    With the information you provided, no one is able to make a determination as to your changes of being approved for a mortgage loan.

    You mentioned the fact that the both of you has been employed in the same job for 2 years. This is one of the requirements, 2 years of employment in the same job career.

    You did not mention your

    #1. Income, combined for the two of you

    #2. The debts are you are currently required to pay each month and are listed on your credit report.

    #3. The credit scores of both of you.

    Your credit score will determine your interest rate. the higher your score the lower your interest rate. How you have handle your credit and paid your debts would determine your credit score. How you paid your debts would also give the mortgage lender and idea of how you might pay this mortgage debt.

    It is best to have established credit by using credit cards and car loan.

    #4. Down payment and closing cost.

    You would need these cost in a financial institution and able to prove with bank statements that these funds have been in this account for 90 days or more.

    Buying a house is a step by step process, this is the first step you should take in order to purchase a house is to be pre-approved for a mortgage loan, by contacting a local mortgage lender. The rest of the steps will fall in place, no matter the type of property you are purchasing.

    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 lender, you can find one in your local telephone book.

    Make sure this mortgage lender or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.

    He will fill assist you in the filing out of the mortgage loan 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 your monthly income earned would be used in a formula to determine what is called a debt ratio. This debt ratio would determine the amount a mortgage lender would allow you to borrow to purchase a house. This debt ration should normally not exceed 39%.

    When you speak with the mortgage loan officer 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.

    Make sure, before you get your pre-approval letter, you and your mortgage broker go over all your options, as to all the mortgage programs you qualify for, the interest rate, monthly payments. This will allow you to make an intelligent decision.

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

    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 situation 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.

    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.

    You would be required to use a local title company that would make sure there are no additional liens on the property take care of all the legal recording at the county recorder's office. You should be sent a title deed in approximately 14 business days, by the title company used to close your sale transaction.

    The down payment of a house would depend on the mortgage loan program you are approved for.

    There are many and varied programs available to you than just the conventional mortgage loan, as well as the down payment required of each mortgage program.

    #1. Conventional mortgage loan

    Normally 5%-10% down payment.

    A. 20% down If you want to avoid Private Mortgage Insurance (PMI)

    #2.FHA mortgage loan

    Normally 3.5% down payment

    There is a monthly fee akin to PMI that you would be required to pay for the life of the mortgage loan or until you refinance the mortgage loan to a conventional mortgage loan.

    #3. VA mortgage loan

    There is no down payment

    You must have been in the United States military active duty, veteran, or retired.

    There is a monthly fee akin to PMI that you would be required to pay for the life of the mortgage loan or until you refinance the mortgage loan to a conventional mortgage loan.

    #4. USDA mortgage

    There is no down payment required

    Normally to be approved for this mortgage loan the property you are purchasing must be a farm or rural property.

    There is a monthly fee akin to PMI that you would be required to pay for the life of the mortgage loan or until you refinance the mortgage loan to a conventional mortgage loan.

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

    "FIGHT ON"

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  • 3 years ago

    How is your credit score

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  • 3 years ago

    Monthly income of 3 times the amount of the monthly mortgage payment is

    required. Being marrried will better your chances. Down payment and sufficient

    closing costs, legal fees, inspection,insurance and utilities deposits must have

    been saved and in your bank account when you apply.

    Source(s): Knowledge.
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  • 3 years ago

    It all depends on combined income, what you want to buy and where you want to buy, how much you want to mortgage. Plan on having a 20% down payment and another roughly $5,000 for closing costs. My advice to first time buyers is to purchase the cheapest house you are willing to live in. And take a short term mortgage, 15 years or less. You will build equity much faster and will have assets if you choose to move up.

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  • 3 years ago

    Talk to your bank or a mortgage broker and ask for a mortgage pre qualification letter. That will answer your question and if you qualify, it will show the maximum mortgage.

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