At a 50,000 high level view, appr 2% of your income. Add to that taxes and insurance and the total should not be more than 36% of your monthly income. That hugely vague number will represent about 80% of the price of the home you can buy.
Those numbers will let you know if you are in the ball park. There are 1,0000 reasons and 1,000 more that a big bank lender can and will create to guarantee you are left at the buyers alter 4 days before closing. Don't allow your shadow to cross the threshold of a big bank.
What you should do is pick up the phone and call a Freehold REALTOR to discuss your situation and real estate needs. Your REALTOR will be able to direct you to the lender with a proven record of delivering financing solutions for folks just like you, needing real estate just like yours, with goals mirroring yours....and hold the lender accountable for their actions.
In this market it will prove essential your lender is able to provide for you the resources allowing you to make an authoritative purchase offer. Such authority is not present in a pre-qualification or a pre-approval. Both have allowed lenders to abandon buyers at the alter. Have your lender, or my lender, provide you a 'CLEAR TO CLOSE' before you start shopping for a home, This means you have passed the lender underwriting FIRST and you can now, with the assurance you have the money, close in DAYS! Now that is a purchase offer with authority.
I have been trying to sell my home as a Short Sale for over 2 years. The bank either never responded to the offers or in the last instance......the bank set the asking price. A buyer came in at full asking price. He patiently waited for months only to be told when we thought a closing was imminent that they upped the asking price by $9,000. He walked away. If I was a buyer, I'd stay away from a Short Sale!
As the seller, within 24 hours, I submitted to my attorney every document the bank asked for. It was not me that held this Short Sale up, as the house has been vacant for over 2 years and I just want it sold and off my shoulders. There seems to be no control over what the bank does. I've called every agency I thought would be of help, including my Congressman to no avail. The last contract was signed the beginning of Feb for $1,000 over the banks asking price and a cash offer. Just wondering how the bank will screw this sale up.... more
You would pay a premium on your interest rate from FNMA or FHLMC. This would only apply if you don't have judgements and collection accounts all over the place. If your score is due to student loans or other high balance loans and you are paying them on time your score would be acceptable. You also need to prove that you can afford the payments.
senior mortgage officer