Home buying thread
- Thread starter Tuco
- Start date
Dunno, do you have 50 grand in credit card debt? Or student loans? Etc. If you"re reasonably debt free I don"t see why you wouldn"t be able to borrow up to the conforming loan limits in your area ($417,000 or so, higher in some parts of VA). Someone else earlier mentioned as a rule of thumb you shouldn"t borrow more than 3 times your annual income, but in my opinion that gets relaxed a little bit as you reach a higher annual income bracket (like yours).
I just threw it into the spreadsheet and if you borrowed $417,000 that"d be a monthly payment of $2367 before taxes and insurance on a 30 year mortgage at 5.5%. Drop it to an even $350000 borrowed and it"s a 2k/month payment.
I just threw it into the spreadsheet and if you borrowed $417,000 that"d be a monthly payment of $2367 before taxes and insurance on a 30 year mortgage at 5.5%. Drop it to an even $350000 borrowed and it"s a 2k/month payment.
Warrian
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We have zero credit card debt and no student loans to pay back. Our credit scores are in the 700"s as well. If it matters or not, we also own a couple of newer vehicles and have cash in the bank. I was just curious as to how much they would loan us. I live in PA now (near Scranton) so I guess I need to change that under my FoH profile.r3probate said:
I don"t know how the preapproval stuff works exactly lender to lender, but both of the numbers I quoted you above are well within the "safe" debt to income range for your mortgage. If you"re not going to borrow a large amount, look into a 15 year mortgage, they"ve got better rates (generally 1% better than a similar 30 year). Just walk into or call your local (whatever) branch and ask if they have a mortgage loan originator you can talk to for a preapproval. You"re basically an MLO"s wet dream unless there"s some whacky shit you"re hiding from the world.
Cutlery
Kill All the White People
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Meh, it"s quite fucking obvious that the lenders still don"t give 2 shits about anything. Like I said before, I"ve got a doctor"s bill in collections that I never saw and my insurance never paid, so my credit score isn"t what it should be, and between my wife"s student loans and my truck, we"re almost 6 figures in debt. We make ~100k a year or so and still got approved for 250k, 5.5% interest. Yeah, they wanted to see a lot of paperwork, but that was it, no hassles, no hangups.
Honestly, I"m a bit fucking surprised myself. I thought for sure there was zero way we were gonna get anything with my wife so far in debt. I don"t carry a debt load other than my truck, so I knew I was fine, but her being 80-90k in debt was disconcerting. Everything came off without a hitch, and we can afford the mortgage just fine, it"s just extremely odd to me that we got approved so easily.
Honestly, I"m a bit fucking surprised myself. I thought for sure there was zero way we were gonna get anything with my wife so far in debt. I don"t carry a debt load other than my truck, so I knew I was fine, but her being 80-90k in debt was disconcerting. Everything came off without a hitch, and we can afford the mortgage just fine, it"s just extremely odd to me that we got approved so easily.
Cutlery
Kill All the White People
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We put down 3.5%, standard FHA 30 year fixed mortgage. We were preapproved for 250k, house we bought was 245k. After all was said and done, the loan is for 240k. It was later appraised for $255, but in the week and a half we"ve been there, I"m sure we"ve kicked the value up another $10k.
P and I is 13xx a month or so, escrow and insurance and shit brings it up to right about 1800. No problem at all affording it, considering we bring home 7000 a month. I"m just a little confused as to why we managed to get a loan so good so easily with shitty credit and a ton of debt. I know everyone thinks they"re different, but the situation is easily managable for us, and both our jobs are extremely stable. We"ll both be employed for a long time, unless civilization completely collapses, in which case I don"t expect too many collection notices.
Mortgage guy said your credit rating doesn"t matter at all as long as it"s above 620. You get the same interest rate at 750 as you do at 620. And it"s quite obvious that your debt load isn"t considered, because we"re already roughly 1x our annual income in debt (Okay, my wife is, I"m not, but they still consider it "our" net worth).
We got a small scare the Wednesday before we closed, bank needed some updated bank account statements and wanted to see some documentation on my wife"s student loan payments, and they needed to see what an $1875 deposit came from. Bank statements were no problem, the documentation on my wife"s loans was a bit trickier since they are in deferment or had been recently sold and we had no idea who owned them. We only managed to get ahold of 2 of the 3 payment plans, and the deposit came from an emptying of my wife"s student balance for school, which we had papers for as well. After we gave them all that, the mortgage bank fell silent, and closing came and went with no problems at all.
It kinda pisses me off, actually. Everything you hear about getting a mortgage is nothing but gloom and doom, you"ve gotta have shitloads of documents pertaining to your income, all kinds of bank statements, you need every cent going into your accounts documented, your credit needs to be free and clear....it"s all shit that you need to stress over constantly until you"re approved. Except it"s 100% bullshit. We lost so much sleep in the month leading up to getting the house it was retarded. Couldn"t eat, couldn"t sleep, constantly nervous about whether we"d make it, and in the end, with 635 and 670 credit scores, and almost 100k in debt we were fucking handed a 240k mortgage at 5.5% interest. It"s a fucking joke. If I had known that going into it, I wouldn"t have lost a wink of sleep.
P and I is 13xx a month or so, escrow and insurance and shit brings it up to right about 1800. No problem at all affording it, considering we bring home 7000 a month. I"m just a little confused as to why we managed to get a loan so good so easily with shitty credit and a ton of debt. I know everyone thinks they"re different, but the situation is easily managable for us, and both our jobs are extremely stable. We"ll both be employed for a long time, unless civilization completely collapses, in which case I don"t expect too many collection notices.
Mortgage guy said your credit rating doesn"t matter at all as long as it"s above 620. You get the same interest rate at 750 as you do at 620. And it"s quite obvious that your debt load isn"t considered, because we"re already roughly 1x our annual income in debt (Okay, my wife is, I"m not, but they still consider it "our" net worth).
We got a small scare the Wednesday before we closed, bank needed some updated bank account statements and wanted to see some documentation on my wife"s student loan payments, and they needed to see what an $1875 deposit came from. Bank statements were no problem, the documentation on my wife"s loans was a bit trickier since they are in deferment or had been recently sold and we had no idea who owned them. We only managed to get ahold of 2 of the 3 payment plans, and the deposit came from an emptying of my wife"s student balance for school, which we had papers for as well. After we gave them all that, the mortgage bank fell silent, and closing came and went with no problems at all.
It kinda pisses me off, actually. Everything you hear about getting a mortgage is nothing but gloom and doom, you"ve gotta have shitloads of documents pertaining to your income, all kinds of bank statements, you need every cent going into your accounts documented, your credit needs to be free and clear....it"s all shit that you need to stress over constantly until you"re approved. Except it"s 100% bullshit. We lost so much sleep in the month leading up to getting the house it was retarded. Couldn"t eat, couldn"t sleep, constantly nervous about whether we"d make it, and in the end, with 635 and 670 credit scores, and almost 100k in debt we were fucking handed a 240k mortgage at 5.5% interest. It"s a fucking joke. If I had known that going into it, I wouldn"t have lost a wink of sleep.
The 620 score bit only applies to FHA loans. If you tried to get a fannie/freddie loan with a 620 you"d get laughed out the door and a 2% credit risk adjustment tacked on.
Cutlery
Kill All the White People
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Yeah, and get charged 2 and a quarter points for the loan origination fee.r3probate said:
So it"s pretty easy to say "Fuck Conventional" and not give 2 shits what they think. I"ll go about my day unconcerned, I definitely have no plans of worrying about that fucking extortion racket. And also, since most first time home buyers aren"t buying shit over $417k anyway, there"s zero reason not to do FHA. It"s a non issue for the vast majority of the populace.
No doubt. Conventionals are great if you"re borrowing less than 60% of the home"s value, but that"s almost never for first timers.
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How different is the process for jumbos? I"m look at ~900k places and probably want to put 300-350k down - the loan to value ratio should be excellent, 60% or less. I checked my credit score last month and it is 740, wife"s is 750. I"ve heard nothing but doom and gloom on getting approved for jumbos at this time.
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I wouldn"t be considering it if the school districts around here were worth a shit. Housing in TX is generally pretty cheap but I think it"s worth it to get into a small enclave school district here. Right now I"m paying for private school and that"s not too bad; but the wife wants a 3rd kid and 3 kids in private school at $22k/yr each = $3k/mo which you never get back.TheCutlery said:
Mortgage payments on a $600k mortgage = $3200 or so a month of which you can get back a significant portion barring another housing disaster (although I"m buying in a big housing slump, so that shouldn"t happen).
Basically its an adventure to get into a boutique school district where the educational quality is similar to private schools but long-term is much cheaper. We"ll see how it goes.
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700-767k buys you like a 1900 sq ft 1920"s 3 bedroom bungalow in this school district. The "decent" houses start at 900-1 mil. The median sales price is around 1.5 mil. I"m looking at foreclosures in less desireable parts of the neighborhood or along a higher-traffic road in order to get some smokin deals, and that"s the $900k figure.TheCutlery said:
My bank didn"t do a whole lot in the jumbo arena for fixed rate loans, but if you"re in a county where you"re eligible for a fannie high balance (jumbo) loan, the process is essentially the same as a normal fannie, with similar credit risk adjustments (at your ltv/scores, i.e. none). There"s always money to be lent to good borrowers who can meet all the documentation requirements. Now if you were trying to get a stated income, stated asset loan...
Hatorade
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So the one house we liked so far is in a very high risk flood plain, we were quoted at least 1,300.00 a year for flood insurance alone so that is out. Sucks because we really liked everything about it except the kitchen2218 Green Garden, Houston, TX 77084 - HAR.comLooking at 10 more homes tomorrow so got my fingers crossed we find something we like just as much or better.