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Answers (7)
- Adam Andrus
- Contributions:54
-An approval for 400k would not be a problem for you based on your income. How long have you been at your current place of employment?
-It is a good idea to get a pre approval just before you begin searching for a home.
-Have you met with a financial advisor or a tax professional regarding your upcoming purchase? If not, I would highly recommend discussing your financial situation with one. They are the best resource for formulating a solid tax strategy. The reason I ask is because depending on your tax situation, you may want to have a higher loan amount so that your write off is bigger, etc.
-In terms of when to buy...now is the time. Historically low interest rates and median home prices that have fallen by almost 50% in some areas= an incredible time to purchase.
-Hope this is helpful. Call me if you would like to discuss anything further. I can recommend a good tax consultant if you do not have one.
Warm Regards,
Adam Andrus
[Contact info deleted by moderator]
American Dream Realty
-It is a good idea to get a pre approval just before you begin searching for a home.
-Have you met with a financial advisor or a tax professional regarding your upcoming purchase? If not, I would highly recommend discussing your financial situation with one. They are the best resource for formulating a solid tax strategy. The reason I ask is because depending on your tax situation, you may want to have a higher loan amount so that your write off is bigger, etc.
-In terms of when to buy...now is the time. Historically low interest rates and median home prices that have fallen by almost 50% in some areas= an incredible time to purchase.
-Hope this is helpful. Call me if you would like to discuss anything further. I can recommend a good tax consultant if you do not have one.
Warm Regards,
Adam Andrus
[Contact info deleted by moderator]
American Dream Realty
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
With your income there is no excuse not to come in with at least 20% down, and you'll save a lot of money in the long run.
You'll easily qualify for a 15 year $400k loan. Don't bother getting pre-approved until you are ready to buy.
Happy funding, Rudi
You'll easily qualify for a 15 year $400k loan. Don't bother getting pre-approved until you are ready to buy.
Happy funding, Rudi
- Nikki Edwards, "RETARMYINTL"
- Contributions:4
[Deleted for spam]
- Greg Cowart, "Roseville Loan Guy"
- Contributions:448
Chris has some great advice there. "Common knowledge" is often misleading or just plain wrong, especially the one-size-fits all idea that putting down as much as you can and getting a shorter term loan is the best way to go. The same goes for prepaying your mortgage. As Chris said "it depends" and for you that plan may very well be a poor plan.
I know almost no one wants a mortgage, they see it as a huge debt they want to get out of as soon as possible. But in reality our goal should be real financial security more than being debt free. Building real wealth and financial security, that is the goal we should be working towards, and when we look at our mortgage as a tool to help us get there, rather than a debt to get out from under, we end up reaching that goal MUCH faster.
"Run the numbers". Have a good financial planner or a qualified mortgage planner do a detailed analysis of your current situation and help create a plan to help guide you to the right decision on your mortgage. Putting 20% down may not be the worst idea for your but I can tell you that you won't find many competent financial planners that would advise you to go after a 15 year mortgage or prepay an extra $1-2k per month. That is counterproductive towards building wealth and attaining true financial security.
Sincerely,
Greg
- Chris Richter, "ChicagoMortgageLoan"
- Contributions:101
Nice overview, in order:
--More than reasonable
--If you are buying in 2011, we'd probably use that income in prequalification for planning purposes anyway. There's no real reason to wait.
--That 20% down myth is lazy advice. It's often good, but any financial planner would say "it depends." I have no idea what you'd forgo to put more money down. For instance, I've seen people with sweetheart deals on employee stock that should not have been passed up. There are mortgage insurance single premium options that can be useful financial tools.
Can I offer my editorial? You're in the ~97th percentile for income. Your issue isn't how to get approved. It is for some people.
Your issue seems to be how get a 97th percentile quality loan option that fits some goals for now/tomorrow. I don't know what those are yet, but I know that some options are tens of thousands of dollars better than others.
Find someone who will clear their desk for a few minutes to fully understand what you're trying to do and run the numbers before making suggestions. That one-size-fits-all "you need 20% and a 30 Year Fixed" is fine, but you probably have better options.
There are a ton of smart direct lenders on these boards. You can look at a lenders history and get a pretty solid idea of how they think.
My $.02,
--More than reasonable
--If you are buying in 2011, we'd probably use that income in prequalification for planning purposes anyway. There's no real reason to wait.
--That 20% down myth is lazy advice. It's often good, but any financial planner would say "it depends." I have no idea what you'd forgo to put more money down. For instance, I've seen people with sweetheart deals on employee stock that should not have been passed up. There are mortgage insurance single premium options that can be useful financial tools.
Can I offer my editorial? You're in the ~97th percentile for income. Your issue isn't how to get approved. It is for some people.
Your issue seems to be how get a 97th percentile quality loan option that fits some goals for now/tomorrow. I don't know what those are yet, but I know that some options are tens of thousands of dollars better than others.
Find someone who will clear their desk for a few minutes to fully understand what you're trying to do and run the numbers before making suggestions. That one-size-fits-all "you need 20% and a 30 Year Fixed" is fine, but you probably have better options.
There are a ton of smart direct lenders on these boards. You can look at a lenders history and get a pretty solid idea of how they think.
My $.02,
- wayne lancaster, "funds2"
- Contributions:1174
Curt gave good advice......... with your high income it would be wise to explore several options i.e. second lien or lender/borrower paid mortgage insurance. Unlike most, you are likely to be able to pay down your mortgage(s) sooner and that needs to be taken into consideration when comparing options. You need all of the tax deductions you can get! You are well qualified and starting the pre approval process now would be prudent. If rates should fall back (not likely) you would be in a postion to take advantage of that factor over the next 60 days, or go forward before rates go even higher.
- Curt Abramson, "Curt Abramson"
- Contributions:120
You should have no problem qualifying for the amount you've defined, assuming the car payment isn't for a Bentley.... There isn't much to gain by waiting until next year to get pre-approved unless you want to qualify for a much higher payment. Waiting until you have 20% down will eliminate the extra cost of mortgage insurance that lenders will require, but that may be offset by the higher interest rates most are predicting will be coming our way.
The best advice I can give you regarding the process of getting loan approval is to meet some loan professionals and see which one you are most comfortable working with, then having them work up a couple of scenarios. The right one will be glad to work with you at your pace, and help you get the info you need to make a decision about buying. If you'd like some references of honest local loan experts I've worked with and trust, feel free to call me or e-mail me. Good luck to you - it's a great time to buy a home!
The best advice I can give you regarding the process of getting loan approval is to meet some loan professionals and see which one you are most comfortable working with, then having them work up a couple of scenarios. The right one will be glad to work with you at your pace, and help you get the info you need to make a decision about buying. If you'd like some references of honest local loan experts I've worked with and trust, feel free to call me or e-mail me. Good luck to you - it's a great time to buy a home!
Amount I can expect to borrow
I'm a first time buyer with a large salary (currently 220k/yr going to ~260k/yr in 2011), I have little debt (only a car payment), and my credit score is ~730. I currently can do about 45k for a down payment.
Questions:
* how much could I expect to get approved for? Is ~400k for 15 years reasonable?
* I was considering getting pre-approved before new year, is it better to wait until I have a couple of pay stubs at my higher salary?
* I understand that a down payment of 20% is better... I can save pretty quickly, but would it be better to buy soon and put an extra 1-2k/mo into mortgage pre-payment?
Thanks All!
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