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Replies (5)
- Dave Skow, "daveskow"
- Contributions:1106
assuming all what you say is verifable and that jobs are realted , and that your credit scores are OK and that you have the down payment and reserves , I would say yes
- FRANK STADLER, "25 Yrs Mtg Lending"
- Contributions:76
Would need to find out a little more about the scenario as you the numbers that you are providing are showing a debt ratio of 44/50.9
On a 4400 per month payment lets assume that 800 per month is for taxes on the house. It looks like you are looking to get a mortgage approved in the neighborhood of around 650 to 670k. Your file doesn't appear to be a walk in the park. Things that the underwriter is going to review beside the debts ratio's are as follows:
1. Payment shock how much higher is your new mortgage payment going to be vs. your existing payment
2. With the recent job changes how much of your income is base salary and how much is commission or bonus? Do you have a 2 year history of stable income? 2 yr history of commission, bonus or overtime?
3. How much money do you have saved for down payment and closing costs? How much do you have left over for reserves?
It will depend on your overall picture. Has the lender that gave you the GFE ran the loan scneario thru desktop underwriting yet?
On a 4400 per month payment lets assume that 800 per month is for taxes on the house. It looks like you are looking to get a mortgage approved in the neighborhood of around 650 to 670k. Your file doesn't appear to be a walk in the park. Things that the underwriter is going to review beside the debts ratio's are as follows:
1. Payment shock how much higher is your new mortgage payment going to be vs. your existing payment
2. With the recent job changes how much of your income is base salary and how much is commission or bonus? Do you have a 2 year history of stable income? 2 yr history of commission, bonus or overtime?
3. How much money do you have saved for down payment and closing costs? How much do you have left over for reserves?
It will depend on your overall picture. Has the lender that gave you the GFE ran the loan scneario thru desktop underwriting yet?
- Mike Bjork, "MortgagePlannerMike"
- Contributions:346
From you what you describe, and assuming credit and down payment is there, then it seems like you should be able to qualify. You'll just need to be sure you're able to document everything.
- kokorico
- Contributions:3
@ Frank Stadler Your assumption on the purchase price is correct, so let me address some of your concerns and let's see if that changes your outlook:
1. All of my salary is base salary, no commissions or bonus.
2. I do have stable income lasting for much longer than two years.
3. When I close in about a year from now (new construction development), I will have put down 5% in earnest money and will have saved an additional $50,000, which leaves me with about 4-6 months of reserves on the back-end scenario.
My lender is working on a commitment letter now, so I guess they are using FHA's electronic approval process.
Thanks everyone for the responses so far!
1. All of my salary is base salary, no commissions or bonus.
2. I do have stable income lasting for much longer than two years.
3. When I close in about a year from now (new construction development), I will have put down 5% in earnest money and will have saved an additional $50,000, which leaves me with about 4-6 months of reserves on the back-end scenario.
My lender is working on a commitment letter now, so I guess they are using FHA's electronic approval process.
Thanks everyone for the responses so far!
- FRANK STADLER, "25 Yrs Mtg Lending"
- Contributions:76
Find out what interest rate that your lender has you pre approved up to. None of of us has that Crystal ball that can tell you what rates will be in a year when you close. If he gets you preapproved at a 5% rate and rates climb to 6 next year you may have an issue. Speak with your lender about extended locks and what thier float down policy is if you are going to consider an extended lock period. The FHA ARM product is a good loan as the caps are 5/1 meaning rate at the end of 5 years can't go up higher than 1% at the end of 5 years and 1% annualy with a lifetime cap of 5%.
Please keep in mind that the lender will pull a new credit report prior to closing. So you won't want to take on any additional new debts prior to closing. One mistake some buyers make when buying new construction is that they go out and buy all this new furniture prior to closing, not realizing that lenders are repulling credit prior to closing. People see the big sale with zero percent interest and then they buy is prior to closing and now the debt ratio is a mess.
Please keep in mind that the lender will pull a new credit report prior to closing. So you won't want to take on any additional new debts prior to closing. One mistake some buyers make when buying new construction is that they go out and buy all this new furniture prior to closing, not realizing that lenders are repulling credit prior to closing. People see the big sale with zero percent interest and then they buy is prior to closing and now the debt ratio is a mess.
Would it be possible for me to get FHA approval?
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