Can my wife and I qualify for a house in the $300,000 range given the credit scores and incomes that we have?
My wife and I are trying to get preapproved for a house by a loan officer.
Her credit score is 700 and something and her income is $16,000
My credit score is 622 and my income is $70,000.
The loan officer is making it seem like we won’t qualify for a house in the $300,000 range with the incomes and credit scores that we have.
Is this actually true?
- garryLv 54 weeks ago
not enough can you afford $3,000 a month for house payments plus taxes , up keep of the house (new stove and carpet ) insurance, water and electricity rates , council rates for the year and food , car and car insurance .plus spending money to live on ..your need am income of $120,000 a year after tax has been taken out . and thats for the next 25 years .
- Raymond L.Lv 54 weeks ago
HEre's the deal??? Do you have a 20% down Payment? If yes then you should be approved.
If you have 3% down then No you probably will not be approved.
What other debts do you have??
How much more money do you have on saving or investments.
There are so many factors.
To be straigh up a 622 score kinda sucks, a 700 score is Ok. Good but not great.
- SlickterpLv 74 weeks ago
You can borrow about 3x what you make, or around $250K
- Christin KLv 74 weeks ago
It's probably true enough, yes. Your score is really low, especially for one who makes $70K. Either you're over-extended on debt already, and have a lot of late payments, non-payments or other negatives, or you've had a bankruptcy or collection somewhere recently. The credit score and the income are only two factors which make up a good risk for a mortgage lender: other things they consider are your location, payment history and your employment history. Debt-to-income ratio is also really important. If you can't pay your bills NOW, you aren't going to have an easy time paying a $300K mortgage. And you haven't even mentioned how much down payment you have.
Your wife's score is okay--but just. It's actually at the low end of the spectrum where a lender would consider a mortgage that large. And her income is REALLY low.
I wouldn't think you'd qualify for that large a mortgage.
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- curtisports2Lv 74 weeks ago
Very true. Based on that income, your maximum allowable mortgage payment is about $2,000. If you have $30,000 to put down ($270k mortgage), your payments for principal, interest and Private Mortgage Insurance (because you are putting down less than 20%) are going to be almost $1,700 at a 4% interest rate. That leaves you only $300 to cover yearly property taxes and homeowner's insurance on a monthly basis. My home is valued at half that price and my taxes are $500 a month.
Even if you find something with taxes low enough to get total payment down to what you qualify for, you are borderline at best. Your credit is barely at the minimum for a conventional mortgage loan and it doesn't matter that your wife's is higher - the chain is only as strong as its weakest link, and that's you.
Do you even have $30k for a down payment plus at least another $10k to cover all of the closing costs, first year's taxes and insurance? Even if you had the 20% down payment to avoid PMI, you would still be borderline. We have no idea of what your debt load is and that could be what has this loan officer saying what they are.
- EvaLv 74 weeks ago
Your credit score is too low and your combined income is too low to handle a mortgage payment on a 300k house without a significant down payment.
- MaxiLv 74 weeks ago
Yu need to be earning a minimum of one third what you wish to loan and you don't so the bank will not loan a mortgage to you more than what you can afford to pay
- Anonymous4 weeks ago
How would we know if you would qualify to buy a 300k house? You said nothing about how much cash you have for down payment.
Your credit score is crap. Her income is crap.
Sure, you could buy a 300k house, but you'll need a large down payment. Do you have one?
If you can afford to make mortgage payments, why is your credit score so bad? Are you just irresponsible or what?
- Anonymous4 weeks ago
Your total combined annual income is $86,000.
Typically, the price of your home would be ABOUT 3 x your annual income. That would mean that you should be looking at homes in about the $250,000 price range.
Your other debts would also be considered - so if you owe money for vehicles or credit cards, that debt is REDUCING the amount of your income that is available to be considered for a home loan.
The amount of money you can come up with for a down-payment might also help with the value of home you can afford.
Your credit scores will also make it hard to qualify for a mortgage that is at the highest limit of what your income qualifies for.
I would think you may have better luck trying for homes in the $200,000 to $250,000 range. The loan officer is doing his job trying to give you advice on what you are more likely to qualify for AND what you are ACTUALLY able to afford.
You could also consider waiting one more year to build up your credit scores and to build up more savings for the down payment. This might make the difference between getting that $300,000 home or settling for something less. (paying off any debts you currently have would help too.)
- JudyLv 74 weeks ago
You'd need 50-60K down payment.