Can anyone suggest a lender...

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

Ok I have posted on here a couple times, but I would like to look into getting pre-approved as my lease is up in December.

I live in Arizona. I would be trying to do the loan in my name only however my fiancé of 10 years would be a 2nd income (has a recent judgment so not putting her on the loan).

I have about 7 years history in my line of work.

My credit score is about 660+. No BK. No charge off. Income is 63k before taxes. But I do have about 400 - 500 monthly debt. 1 car payment, student loan debt and some CC debt that make up that 400+.

I have not owned a house in 2+ years so I am told I may be considered a first time buyer again.

I would like to finance 100% and I am looking at houses right around 300k.

If someone would like to take on this challenge or can recommend someone please let me know.

Thanks!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Glad to see your interest here, and that you trust us folks enough to say something to us :)

It sounds like you might be pushing it as far as ratios are concerned. With a monthly income at $5250 you're going to want your total payments at or below 1/3 of that amount if possible. There are definitely programs that allow for greater ratios, but you have to keep in mind how much that is going to cost you. A $300,000 loan is going to run you right around $2,000 (Off the top of my head) and that wouldn't be including taxes and insurance. While you may *have* that 2nd income, if she's not on the loan it wouldn't be something you could use to qualify for.

There are no ratio programs that wouldn't require that you document your income, but that is usually going to require money down and is going to be a slightly higher rate.

Is her judgement going to be paid?

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

Thanks for the reply. Yes I know my situation is not ideal :(and no the judgement will not be paid. The judge awarded a 17k judgement on a 5k CC debt that was 2 years past its SOL. She will claim BK here shortly.

I guess I am just trying to find out my options. I would really like to stop renting, and assumed I would have to pay a little higher rate based on my situation, however I didnt have any clue how much more or if I am so far off that no one would even take me on.

So my plan was to find out. If I can't afford it at this time I would continue to rent and save up more money and to try to get a better down payment. I should have about 7 - 8k saved by December, but I assume most of that will go to closing. And isnt anywhere near 10% anyway. Bummer! I hate renting!

Of the top of my head 1/3 would be about 1700-1800 which would be what about 250k???

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

PhxGuy520 wrote: Thanks for the reply. Yes I know my situation is not ideal :(and no the judgement will not be paid. The judge awarded a 17k judgement on a 5k CC debt that was 2 years past its SOL. She will claim BK here shortly.

I guess I am just trying to find out my options. I would really like to stop renting, and assumed I would have to pay a little higher rate based on my situation, however I didnt have any clue how much more or if I am so far off that no one would even take me on.

So my plan was to find out. If I can't afford it at this time I would continue to rent and save up more money and to try to get a better down payment. I should have about 7 - 8k saved by December, but I assume most of that will go to closing. And isnt anywhere near 10% anyway. Bummer! I hate renting!

Of the top of my head 1/3 would be about 1700-1800 which would be what about 250k???

The reason I ask that last question is because 300k was the upper limit. I have found houses in the school district I want for around 285k asking price. My goal was to get my kids established in the school district I like and purchase a little less house, and then sell in a 5 years or so and upgrade. I would be willing to give up on a couple options if all it took was to come down somewhat in the price range of the house I was looking for to qualify (if that makes sense).

DallasLoanGuy · Joined: 26 Sep 2006 Posts: 169 Location: Dallas, TX

make sure ytou are dealing with a loan officer skilled in automated underwriting. i have seen some pretty high debt ratios going thru lately

100% no ratio is available at 660 fico. but it vcarries a hefty cost in rate

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

DallasLoanGuy wrote: make sure ytou are dealing with a loan officer skilled in automated underwriting. i have seen some pretty high debt ratios going thru lately

100% no ratio is available at 660 fico. but it vcarries a hefty cost in rate

Could you give me an example of hefty?

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

PhxGuy520 wrote: DallasLoanGuy wrote: make sure ytou are dealing with a loan officer skilled in automated underwriting. i have seen some pretty high debt ratios going thru lately

100% no ratio is available at 660 fico. but it vcarries a hefty cost in rate

Could you give me an example of hefty? Also how would I know where to find one of these?

DallasLoanGuy · Joined: 26 Sep 2006 Posts: 169 Location: Dallas, TX

PhxGuy520 wrote: DallasLoanGuy wrote: make sure ytou are dealing with a loan officer skilled in automated underwriting. i have seen some pretty high debt ratios going thru lately

100% no ratio is available at 660 fico. but it vcarries a hefty cost in rate

Could you give me an example of hefty?

not too bad on the first lien. but the 2nd will be over 10% (assuming 80/20)

seconds are different in texas. and we cant do heloc 2nds.... so you need to ask someone who knows your state's loan programs.

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

Yeah I would like to do a 80/20 to avoid MI.

DallasLoanGuy · Joined: 26 Sep 2006 Posts: 169 Location: Dallas, TX

what is your debt ratio?
did the lender tell you
?

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

DallasLoanGuy wrote: what is your debt ratio?
did the lender tell you
?

Well my co-worker went through and friend of of his a couple months ago and I was really impressed with the way he treated my co-worker as well as the very low closing cost so I went through him. I sent him my info about 2 weeks ago and I have not heard anything back, so just yeterday I started to think about going with someone else.

I can list my monthly debt:

108 (I am a joint on my mothers CC. They sent her documents to remove my name. I dont even remember doing it??? Should be out of my name next month.)

134 - Honda Finance(ATV)
258 - Car (I am gonna see about my fiance getting a loan to get this into her name since its really her car, so this may go away too)
180 - CC
168 - Financial Aid

Again my income is 63k and my fiances is 45k. Not sure if assets matter or if this would be considered one for these purposes but I own my truck 2001 F150 4x4 ~9k value. And I should have about 8 - 9k in reserves by December. I could pay off the ATV and still have about 3-4k in reserves.

DallasLoanGuy · Joined: 26 Sep 2006 Posts: 169 Location: Dallas, TX

the reason i ask:

if your debt ratio is below 60% and you have been on the job a long time with some assets to show or i... 401K
then you might be surprised at what is offered thru automated underwriting.

PhxGuy520 · Joined: 08 Aug 2006 Posts: 38

DallasLoanGuy wrote: the reason i ask:

if your debt ratio is below 60% and you have been on the job a long time with some assets to show or i... 401K
then you might be surprised at what is offered thru automated underwriting.

Well I have a 401k but not much to speak of maybe a couple grand. My only real asset is my paid off truck besides normal household electronics, computers, etc...

I have about a year at this place but in the same field for about 7 years.

I guess I am not sure how I go about the automated underwritting process. Do I just ask lenders?

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Well, the automated underwriting is simply a computer that weighs the pros and cons of your loan. It looks at things like the assets (reserves, i.e. if you suddenly stopped having any income, how long could you sustain your mortgage payment) as well as your DTI, your down payment, job / address history, etc. and makes a decision. If it's approve, it doesn't matter what those numbers state, as long as they are accurate.

So far my highest was a 78% DTI and it was auto approved.

chow · Posted: Wed Sep 27, 2006 12:26 am Post subject:

Haplo wrote: Well, the automated underwriting is simply a computer that weighs the pros and cons of your loan. It looks at things like the assets (reserves, i.e. if you suddenly stopped having any income, how long could you sustain your mortgage payment) as well as your DTI, your down payment, job / address history, etc. and makes a decision. If it's approve, it doesn't matter what those numbers state, as long as they are accurate.

So far my highest was a 78% DTI and it was auto approved.

Or whatever your parents will give you..... :roll:

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