My credit score is around 629 Income is aprox. $6000/mo before taxes. How much house can we afford?
April 15, 2007 · Print This Article
aopabailey asked:
My wife has the mortgage with our current home. We have never been late for the last 4 yrs we have had the house. We want to sell the house so we can move to Kansas to be with family(She is preg). I know the banks our tighter with money now so I am worried. I have a better credit score than she does but she has the mortgage history. Please help.
Kansieo.com
My wife has the mortgage with our current home. We have never been late for the last 4 yrs we have had the house. We want to sell the house so we can move to Kansas to be with family(She is preg). I know the banks our tighter with money now so I am worried. I have a better credit score than she does but she has the mortgage history. Please help.
Kansieo.com
Josh Dunaway has been a certfied Realtor in the suburban Chicagoland area for over 20 years. Aside from starting his own real estate company, he also owns a mortgage company as well.
There are lot of mortgage calculators online, Just google them and you can get a better idea.
with income of 6000 a month, I would recommend a mortgage payment of NO MORE then 1500 a month. This works out to a loan of around 200000 + the down payment = the price of the home.
DO NOT BECOME HOUSE POOR. With a new kid, your expenses will increase and continue to increase. Plus wife may want to stay at home for a while.
You SHOULD be saving at least 10% of your income. WITHOUT FAIL.
It looks like you would qualify for a loan in the low to mid 6% interest rate. The ratio of debt to income needs to be less than about 43% of your gross income. So, that means that total ,monthly debt can not exceed about $2,500 per month.
If you want more help, fell free to email me.
I agree with the Real Estate Guy’s answer… also the housing bill was just passed and President Bush is expected to sign it this week, the bill has benefits for first time home buyers and others, this article details some of the benefits, you should read it,
In Kansas you can buy alot of House for 200,000. I would be concerned about paying down some of your debt. Your credit score is not great and would currently give you a higher Intrest rate than what it could be say if you had 30 more points on the credit.
You must be at or above credit limit on some credit cards or you have alot of store cards. Store cards are generally not credit report friendly because they report that what you owe is the limit so if you are at the limit on several cards this will drive the credit down. Here is a hint Sears is the worst for this type of reporting.
Close the store cards. You will take a ding for closing them but in 2 months a world of difference will show on your credit. Most stores take Visa Or Master better yet create a budget that you will only spend cash for everything. I can help if you contact me.
You’ll most likely have to go fha, 629 at a big bank most likely won’t cut it, I would not go over 200k. If your not on the note to the current home, you should be ok. Depending on where you are in the country your sale may be an issue. I would check your credit though, if 629 is your high score, you may take a hit, find out what your mid is and go from there, I wouldn’t get too greedy with a new home, especially if you don’t sell before you move, good luck
Average credit score in America is 720. Scores under 620 are subprime. You have not been good at paying your bills. Your wife has been worse. You will pay for this. You can get a loan. You can buy any house you want. Your interest rate will be 8.5% fixed. That sounds high when today’s rate is 6.75%. That’s the price you pay. Her mortgage history isn’t as important as it was 10 years ago.
You can buy up to $240,000 with no money down and the current house sold. Without selling the current house you can buy $160,000.