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Wondering if we will get the loan.

My husband makes 110k a year. We have some debt about 8k in a month we will use my husband 7k after taxes from his bonus check to pay it down. I sent a payment for 1k today. My credit score is 698. I have not been late in 5 years on anything neither has my husband ans his score is 701. We have been paying 1900 a month in rent for the past 4 years never been late. Before that we owned a home and were never late on a payment. We are going in today to get preapproved for a house we found and really love. I am wondering if we will get the loan. We only have 10 percent to put down. We had 20 percent but the stock market really screwed us over. The home is 274k. Anyone who works in banking do you think we will get the loan?

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Anonymous

Asked by Anonymous at 11:06 AM on Apr. 6, 2009 in Money & Work

Answers (5)
  • I don't work in banking, but it sounds like you will get the loan. They go a lot by credit score and debt to income ratio.
    Anonymous

    Answer by Anonymous at 11:12 AM on Apr. 6, 2009

  • It totally depends on the bank and the loan officer. You can speak to two different loan officers and get two different answers. They might tell you to wait until the debt is paid down some more. I think the fact that he only makes 110K per year but wants to buy a house that is more than double what he makes in a year is going to hurt you. They might not think you can afford the payments. I do not work in banking but my best friend is a bank manager and my mother has been in real estate for 15 years. I was a real estate assistant as well. I think you might be looking to get in over your head on this house. Your payments, with taxes and insurance, will be A LOT more than what you are paying in rent now. You might want to look at a cheaper house and get the debt paid off or mostly paid off first.
    DDry

    Answer by DDry at 11:12 AM on Apr. 6, 2009

  • When we went to get our loan for a house. We need to have 3 years back tax returns to show them.Proof of income of course. We had to have all this proof and we had VA to back us up. Your credit score has a lot to do with it to..The one thing we found out is.Do not tell them how much you want to barrow.Ask them how much they are willing to lend you. Because one bank would only lend us how much my DH asked for ,,the other lent us way more, cause he ask,how much are you will to lend me.

    louise2

    Answer by louise2 at 11:23 AM on Apr. 6, 2009

  • Personally, I think you are buying too much house. If you get the loan, your rate will be a little higher than what others are getting. Good luck though.
    Anonymous

    Answer by Anonymous at 11:26 AM on Apr. 6, 2009

  • They will want your PITI to be less than 32% of your income.
    Principal, Interest, Taxes and Insurance, HOAs etc.
    Given that you have only 10% down they will probably want you to pay Mortgage Insurance. I think this is now tax deductible.
    They will take into account car payments etc. but to me you look like you should get it. A lot depends on what interest rate you get.
    If you can keep you PITI at around 1900 per month then you should be fine. A bank will in a lot of cases lend you more than you can handle. If you go a little over the 1900 you will want to factor in the tax breaks from owning a home to work out your comfort level.
    GOOD LUCK!
    AussieMum2

    Answer by AussieMum2 at 2:20 PM on Apr. 6, 2009

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