You need to talk to a mortgage lender and get pre-approved. Don't settle for a phone conversation and pre-qualification. Here's a couple articles on what a good mortgage pre-approvasl do and don't look like:
Call me to start the pre-approval process.
Senior Loan Originator
NMLS #: 222407
Have you spoken with a mortgage lending expert about your qualifications yet?
If not, that's the best place to start!
If you have a real estate agent representing you, he or she should be able to provide you with some referrals.
If not, we are more than happy to discuss and recommend a broker to get you pre-approved for a loan!
Give us a call at 312.242.1000!
Americorp Real Estate
Brokers Associate, e-PRO
It's great that you are looking at your finances before you begin your search! Understanding your buying power will help you to target your search within an obtainable range. One of the best things you can do to prepare yourself to purchase a property is to find a reputable Mortgage Consultant at a Bank or Mortgage Company. You will want to complete an application and request a "Pre-Approval" ( or at minimum a "pre-qualification"). The pre-approval will arm you with the knowledge and confidence of what is affordable for you. Next find a great Realtor and start your search !!!
Good Luck to you !!!
Really great question. With a credit score of 640, you have just met the minimum threshold to purchase using an FHA loan. All the answers below are correct. If you are looking at raw numbers, based on an income of $2000, FHA guidelines say your housing ration shouldn't exceed 31% of your gross income. With that being said, you would be looking at paying no more than $620 per month for a mortgage. Your down payment and other monthly recurring debts will be the final determining factor regarding your total qualifying amount. If you'd like to get more information, please feel free to give me a call. Just one last tidbit of information, before you being shopping for your new home, you will want to speak with a lender. If you have pulled your score from an online source, at times they are not as accurate to what lenders will pull, just an FYI. Thanks again for your question, it's a very important one.
Based on a 640 fico score, you would best qualify for an FHA loan. Do you make $2000/month gross income or net income?
Please contact me directly if you would help with getting pre-qualified for a mortgage.