bigdonls1 Posted September 22, 2004 Report Share Posted September 22, 2004 I am 24 years old and have good credit. My Ex is 694 and I make 46k a year but have a large car note ($645 month w/$27600 balance). I also have a sig. loan for $195 month ($5400 balance) and three credit cards for $200 a month ($6800 balance). My wife also has good credit, two cards with zero balance, and makes about 16k to 18k a year? Is there any chance of getting a loan for 115k or will I have to wait to pay these things off. Thanks for any info. Donald Link to comment Share on other sites More sharing options...
morrow Posted September 22, 2004 Report Share Posted September 22, 2004 Do you have any collections? Charge offs? Things of that nature? Link to comment Share on other sites More sharing options...
bigdonls1 Posted September 22, 2004 Author Report Share Posted September 22, 2004 I'm new to all of this so I don't exactly know what that means. If it means what I think I have never been behind or missed a payment on anything.Thanks...Donald Link to comment Share on other sites More sharing options...
breathing_easier Posted September 22, 2004 Report Share Posted September 22, 2004 bigdonls1: There are some members who are in the mortgage business who will probably post soon. However, I think they may ask the ratio of your balance on the credit cards and signature loan to the amount of available credit. For instance, for the credit cards, what is your total credit line? If your balance in proportion to your available credit is high, you may need to pay down your balances in order to get the best mortgage interest rates. Your car note also seems a little high. However, it sounds as if even though you're young you've been taking good care of your credit. While I don't wish to be any age but the age I'm at right now, I do sometimes wish I could go back and undo some of the credit mistakes I've made. You're way ahead of the game...good for you! Link to comment Share on other sites More sharing options...
firstsource Posted September 22, 2004 Report Share Posted September 22, 2004 First of all, you can get a loan for a home up to 150K easily.Here are some of the "wierd terms" us mortgage people use:DTI: Percentage of your pre-tax income vs your minimum monthly outlay, includes your future house payment (PITI), and min credit card payments and car payments. To qualify, you will need to be in the 36-39 for Prime rate lenders and up to 50% for Alt-A and Sub-prime lenders. PITI: Principal, Interest, Taxes, Insurance LTV: Loan To Value: Percentage of the value or price (whichever is lower) that you are borrowing. ie, 115,000 you can get all of this in a loan, but lets say that you wanted to put 5% down, then your LTV would be 95%. MI: (Wrongly called PMI) this is an insurance policy that prime lenders arrange for you, when your LTV goes over 80%. There are a lot of options, and most of the time you will end up with a dual loan, ie 80% plus another loan for the balance, lots of times 20%. There are some others, but this is the key group. Charles Link to comment Share on other sites More sharing options...
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