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I was approved! Now I have another question


cacata
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Hey guys,

i haven't posted about the status of my house hunt. I did receive a mortage approval (with a great rate) and I had a few contingencies to meet. I will have them all met by Oct 15th. How long after this will actually be able to close?

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If you meet all of them by 10/15 then you should expect your final documents to be drawn in 24-48 hours from that date, and as soon as everyone is available you should be able to close. Each person's mortgage process is slightly different, so to get your exact details I'd call your loan officer.

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No problem. My lowest score was equifax at 569 then Experian was 609 and TU 625. I have crazy student loans, like 170, 000, so my debt to income ratio is very high. I had paid every single collection on my account 2 years ago (before I found this site) and have maybe 4,000 in CC debt. My preapproval was for 150, 000 and the home I closed on was 133, 000. I did 1% down at M&T Bank and they did 100% financing and covered my closing cost with a personal loan. I paid at closing 475 dollars. Today, I had been moving all day and plan on making another trip tonight after I feed my kids.

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No problem. My lowest score was equifax at 569 then Experian was 609 and TU 625. I have crazy student loans, like 170, 000, so my debt to income ratio is very high. I had paid every single collection on my account 2 years ago (before I found this site) and have maybe 4,000 in CC debt. My preapproval was for 150, 000 and the home I closed on was 133, 000. I did 1% down at M&T Bank and they did 100% financing and covered my closing cost with a personal loan. I paid at closing 475 dollars. Today, I had been moving all day and plan on making another trip tonight after I feed my kids.

Mind sharing your income? If not, I understand. I ask because Countrywide Mortgage and CTX Mortgage (I deliver mail to both) told me I'd qual for 100% fi' for a $225K home once I clean up a few things. I make about $60K/yr. I'm just wondering if that's really true. I certainly don't want to qual for $150. That would buy me an 800-sq ft 1-bd condo around here.. lol.

Denver is so funny. $150K+ for a small condo. An extra $75K will buy an 8000-sq ft yard, finished basement, 2-car garage, 3 more bedrooms, 2 more baths, and another 1500-sq ft space. (I have been looking at property newer than 5 yrs.)

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  • 2 weeks later...

You could spend a max of around $2300 on your monthly note (that includes taxes, insurance, principal, interest, association fees, etc), assuming you had zero debt.

Deduct your monthly student loan payments and all other monthly debt (car note, other credit card debt) from that number. You don't need to deduct things like car insurance, utilities (phone, cable, gas, electric), car gas, food, etc.

I got that by dividing your annual gross income by 12 and multiplying by .42. That's the max your house & other credit bills should cost.

Depending on loan programs, that may be kinda on the high side. Some lenders will let you go that high. Few, if any, will let you go above 42% of gross income.

How much house you can afford will depend on what kind of rate you get, how high your taxes are, how high your association fees are, etc.

That's the worst thing about texas. Homes are cheap, but almost 1/3 of my mortgage payment is going towards taxes. I doubt I'd get a better house if taxes were lower, but I'd save a ton of money!

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Speaking from experience -- what the bank says you can afford, and what you can realisticaly afford are 2 different things. The bank does not account for life changing events, such as having children, getting ill, job changes, etc... The bank also does not account for things like the lawn mower breaking, the fridge dying, the heat going out on the coldest night of the year. Nor does the bank account for the value of the home going up and your taxes rising, as well as the insurance to cover that increased cost (my house payment had risen $380 a month due to this).

Just make sure you leave a cushion for these types of things. You need to be able to put money into savings every month for emergencies.

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