1) Add up your monthly debt (student loans, auto loans, revolving credit) and know what your minimum monthly payment is.
2) Calculate your monthly gross income.
3) Figure out where your down payment is coming from.
Once you add your monthly home payment to your monthly recurring debt and divide it by your gross income, you will have a Debt to Income ration (DTI). Remember the monthly housing payment consists of:
1) Loan Principle and Interest
2) Real Estate Taxes
3) Hazard (homeowner's) insurance - or in the case of a condo, monthly homeowner associations fees
If your DTI exceeds 45%, you most likely need to stay in your current living situation for at least one year.
If I can be of further assistance, my contact info is in my Trulia proflile, and I am happy to answer any further questions you may have.
Yes, you can get approved and you'll need a few things to provide an Underwriter:
Copies of your transcripts listing the date you completed your education.
If there is a gap of more than a few weeks between graduation and your first date of employment you'll need an explanation letter.
If you are borrowing the down payment (i.e.- gift of equity from parents) make sure you have clear documentation history of the transfers of funds.
If the position is full-time that it a plus, and hopefully you've been there at least a month or two to provide paystubs.
*Note: there may be more items required depending on the lender, but these are the basics.
Also, make sure that you are not spreading your credit inquiries around. Don't shop for a car and open new credit cards the same month you're looking for a mortgage, that can have an impact on your credit scores over time.
Are you considering a Conventional or FHA mortgage? The guidelines and down-payment requirements are different. Now's a great time to buy a house, congrats and good luck!
E Mortgage Management
800.793.9633 ext. 156