Home Buying in Glassboro>Question Details

Vincent DiCa…, Home Buyer in Blackwood, NJ

Can we afford this home? Will we get approved?

Asked by Vincent DiCastelnuovo, Blackwood, NJ Sun Oct 13, 2013

My fiancé and I have decided to look into purchasing our first home. By the end of the month we will finish paying off all of our credit card and other debt (other than student loans still in deferment). Our credit scores are 630 and 650 right now. We make about $52,000 a year combined right now (which about triple upon our graduations next year). We found an awesome new construction home for $200,000 and would love to purchase it but are not sure if we can afford it or if we will be approved for any loan.

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8
52K after taxes is a little better. It all depends on your level of comfort with a monthly payment for the next 30 years. I try to help educate first-time buyers of the realities of homeownership....past the white picket fence.

Principal and interest will be around $1000/m. Make sure you include PMI, property taxes, and homeowners insurance. What are the annual taxes and annual homeowners insurance amounts?

Try this calculator: http://www.anytimeestimate.com/FHA/fha-mortgage-insurance-ca…
1 vote Thank Flag Link Mon Oct 14, 2013
You've gotten good advice below but here's what you're going to want to do next. First, I recommend you speak with a lender to apply for a loan and prequalify. When you apply for a loan, lenders like myself will need to look at several different things if you are trying to prequalify for a loan. 1) Proof of income for each person that will be on the mortgage which can be demonstrated through: one month of pay stubs, previous year's W-2 forms and tax returns, official documentation to demonstrate other forms of income (alimony, child support, etc.), and two year's tax returns if self-employed (all schedules, all pages) 2) Credit Report which they will pull 3) Employment History or Business Tax Returns if you're Self Employed 4) Personal assets such as: Recent balances and statements for bank accounts, most recent account statement demonstrating market value of any investments (stocks, bonds or certificates of deposit), documentation showing interest in retirement funds, face amount and cash value of life insurance policies, value of significant pieces of personal property, debt information, the balances and account numbers of your current loans and debts, including car loans, credit card balances and any other loans you may have. These are just a few things you should have ready when you begin your buying process. If you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps! Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887 brian.nguyen@nafinc.com
0 votes Thank Flag Link Fri Feb 14, 2014
I would be happy to have my lender give you a call to go over all your options and get you pre qualified for a loan. If this is something you would be interested in give me a call and I will pass along your information to him.


Thanks
Samuel Rifkin
609-315-9119
Web Reference: http://www.SamSellsNJ.com
0 votes Thank Flag Link Fri Oct 18, 2013
I'm also not sure if this matters, but $52,000 is after taxes and we currently rent for 1200/ mo. I'm not sure how accurate they are, but quotes we have been given for monthly payments range from $650-900/mo for the homes we have been looking at.
0 votes Thank Flag Link Mon Oct 14, 2013
I agree with Paul below.... a 200K purchase price would leave you with a pretty stiff monthly payment (if you were able to get approved).

Check out these two articles:
Are You Ready? - http://homebuyernation.com/2013/09/23/are-you-really-ready-t…
Getting Your Finances in Order - http://homebuyernation.com/2013/09/24/lets-get-your-finances…

Hopefully these are useful for you.
0 votes Thank Flag Link Mon Oct 14, 2013
Hello Ms.t,
Thanks for your question.
a loan officer will be the best person to answer your question after he has reviewed you and your fiance's whole picture, meaning income, assests and credit scores. He/She will also give you hints on how to improve it to get the best possible rates.
There are great loan programs for first time home buyers.
Call a bank you do business with or call me if you need a couple names of loan officers. I will be happy to assist you.
Best Regards,
Ines De La Cruz, Realtor, ABR, CRS
RE/MAX Connection
609-313-8518
inesdelacruz@remax.net
To view all the homes in SJ visit http://www.inesdelacruz.com
0 votes Thank Flag Link Mon Oct 14, 2013
1. you can't afford it
2. you are not likely to be approved for the amount you need to make a 200k purchase.

Taxes plus mortgage payment would result in a payment of around 1700/mo. (That is a VERY rough guess)

But even if you were approved - you should wait. Your credit scores are only fair. Work on that.

I understand you are excited about your future and would love a home together. That's great. You will be happy for a lot longer though if you move more slowly. You need a plan and someone to help you implement it.

I could give more detailed advice if we talked but if not me find 'somebody' that will advise you and not try to sell you something till you are ready. I can also suggest a lender for you to talk to that will not pressure you. Good Luck
0 votes Thank Flag Link Mon Oct 14, 2013
The only way to determine if you can afford the home is to speak to a reputable mortgage representative and have them look at your credit history , debt to income ratio, and income and provide you with a detailed report to help you determine what you may be able to afford.
Remember you will also need some sort of down payment and verifiable employment.
0 votes Thank Flag Link Sun Oct 13, 2013
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