can i get a loan? what loan would suit me?

michaelit · Joined: 18 Apr 2007 Posts: 4

I'm looking into purchasing a single family home sometime in the near future in SoCal (Westside) and was hoping you could tell me if I could afford a place with my current financial situation.

Looking to Borrow: $400k
Gross Income: $75k/yr + $5k bonus
Debt: $30k. I spend about $650 paying this debt ($450 credit card + $200 car)
Credit Scores: TU - 670, EX - 675, EQ - 692
401k/IRA Totaling: $7500
Savings: $5000

jrhartman · Joined: 01 Apr 2007 Posts: 107 Location: Michigan

qualify you, probably? Whether or not you could afford it might be a different story.

michaelit · Joined: 18 Apr 2007 Posts: 4

alright can i afford it then? geez..

jrhartman · Joined: 01 Apr 2007 Posts: 107 Location: Michigan

michaelit wrote: alright can i afford it then? geez..

I have no idea what you can afford.... You are the only one that would know what an "affordable" monthly payment would be for you.

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

Well, assuming you've had your bonus for 2+ years, here's where things work out to:

$80,000 Annual income
$6,666 Monthly income

38% of $6,666 = $2533

So $2533 is what you should be looking for in total payments.

With the $650 you are currently paying in outgoing debt, that leaves you just under $1900.

Assuming an interest only, $400,000 @ 6% (which is an easy number to use) would be $2,000 and that's not including any potential PMI, or taxes, insurance, or homeowners association dues.

Net result of which could be $2500-$3000 depending on how much the taxes and PMI are.

You may potentially be able to qualify on some loan programs, but are you prepared to handle a payment of that much or more? Obviously a loan that includes principle would be even more costly.

michaelit · Joined: 18 Apr 2007 Posts: 4

Thanks Haplo.

Let me do some math and see what direction I should be headed in.

chow · Posted: Thu Apr 19, 2007 10:36 pm Post subject:

jrhartman wrote: michaelit wrote: alright can i afford it then? geez..

I have no idea what you can afford.... You are the only one that would know what an "affordable" monthly payment would be for you.

jrhartman,

Unless you can answer the question to the consumer, please be nice in your responses. Many people don't know how to figure out DTI, or what is SOP for our industry. I admit I can be the queen of insults, but I attempt to keep my patronizing responses contained to those- within the lending community.

michaelit · Joined: 18 Apr 2007 Posts: 4

lol thanks chow.

jrhartman, let's talk computers and network infrastructures and let's see what happens.

chow · Posted: Thu Apr 19, 2007 10:48 pm Post subject:

no problem, the guy who started the site started it for a reason, to figure out what the heck to do with his own home loan needs.

I just try to keep the spirit of why the board was created, alive.
:lol:

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

I try to keep my ire for advertisers ;)

jrhartman · Joined: 01 Apr 2007 Posts: 107 Location: Michigan

chow wrote:

jrhartman,

Unless you can answer the question to the consumer, please be nice in your responses. Many people don't know how to figure out DTI, or what is SOP for our industry. I admit I can be the queen of insults, but I attempt to keep my patronizing responses contained to those- within the lending community.

sorry if I offended anyone, but I did answer his question. He didn't ask what the payment would be or anything along those lines, he asked if he could afford it, which obviously I have no way of knowing his comfortable payment range. His question about qualifying I did answer and answered correctly.

My response about affordability has nothing to do with the ins/outs or SOP of this business, it is a PERSONAL range specific to him and him only. Even if some people qualify and would have below a 38% front end ratio, they still wouldn't be comfortable making the payment, therefore they couldn't "afford" it.

michaelit: what payment range are you trying to keep your total housing payment to? This answer will help us guage what price range that you should be looking in.

chow · Posted: Sat Apr 21, 2007 11:09 am Post subject:

Based on the response she gave you, I didn't think she knew that's where you were going.