Home Buying in Chestnut Hill>Question Details

Raindancergem, Home Buyer in Philadelphia County,...

My partner and I have OK credit and combined we earn over 120K. Would we be able to qualify for a mortgage?

Asked by Raindancergem, Philadelphia County, PA Mon Aug 24, 2009

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One of the requirements of the home loaning process is to show 3 months of current bank statements.  In order to increase your chances of getting approved for a home loan, you must have enough money for your down payment, closing cost and 3 months worth of mortgage loan payments in your bank account for 3 consecutive months. The money must not decrease within those 3 current month period. This is the best possible way to show the bank that you’re a great candidate for the loan. Depending on your credit score, a mortgage loan officer will find you the best loan option available to you according to your specific situation. For a conventional loan, you must give a minimum of 20% down. For a FHA loan, you can give as little as 3% down but not all houses or condos qualify for FHA approval. A simple math formula to determine how much is your down payment is: loan amount (house value) x .20 = your down payment for a conventional loan. For an FHA loan, the formula is: loan amount (house value) x .03 = your down payment for FHA loan. But don’t forget that you must also have more than the minimum down payment in your bank account, to show the banks that you’re a good credit risk. This will increase your chances of getting your loan approved. Remember, you’re only risking 3 to 20 percent of the value of the property and the banks are risking 80 to 97% worth of the home loan value.
0 votes Thank Flag Link Sun May 27, 2012
Speak with a lender ASAP to determine what your OK credit and income actually qualifies you for mortgage wise. This should only take about 20 min if you have all the info available. Feel free to contact me if you need a referral, have any questions or are ready to hire a buyers agent.
0 votes Thank Flag Link Tue Feb 7, 2012
So, when would you like to discuss your Real Estate needs and requirements? I can be contacted at f.foldki@cbhearthside.com or check out my website at:
0 votes Thank Flag Link Mon Aug 31, 2009
You have many great anwsers below and I would be more then happy to pre qual you both. Please feel free to give me a call or e mail, I just got back from my Philly Office so I am in Florida for the next few days.

Melissa Antenucci
Ameritrust Mortgage
0 votes Thank Flag Link Thu Aug 27, 2009
My advice is to find a buyers agent. They will take you through the steps to purchasing a home. Once you find an agent you will need a mortgage broker or banker. If you dont have one the agent can assist you in finding one. The lender will let you know if you qualify for a loan and how much. Once that is reached you start the process of searching for a home. When it comes to you and your partner the lender will need to run a credit check on both of you and look at your debt to earnings ratio's. That will determine how much you qualify for. This will help your agent determine what price range you may want to consider.

Hope this helps and if you need further assistance please call or visit my web page.

Joseph Vogel
Keller Williams Realty
0 votes Thank Flag Link Thu Aug 27, 2009
My best advice would be for you is to do two things. Engage in the services of a buyer's agent to represent you in your search for a home. Your agent will assist you every step of the way! Second, contact a mortgage loan officer/lender to discuss your individual circumstances regarding your qualifications for a mortgage. Your buyer's agent can also recommend a multiple lenders if necessary. Please feel free to contact me if you have any questions or would like to discuss buyer agent representation with me. I would be more than happy to assist you!

Frank Dolski
Associate Broker
Coldwell Banker Hearthside Realtors
215-794-1070 x103
Web Reference: http://www.Frankdolski.com
0 votes Thank Flag Link Thu Aug 27, 2009
The question cant be answered just with that information... for example, $120k income coupled with expenses that are close to half of that per month would make the loan difficult to get approved. The credit is actually more flexible. We for example have programs that go down to a 500 credit score. Whats more important is the income and expense balance out (called ratios - not to get technical). But that has to be weighted against the properly and against the tradelines on your credit profile, your down payment, the property, on top of a few more items.

Think of it as scales on top of scales and they all have to be balanced.... and there is your approved/eligible.
0 votes Thank Flag Link Wed Aug 26, 2009
No professional can render an opinion UNLESS it's a mortgage broker who will review your entire financial file. 2 years employment, credit scores, debt ratio, 3.5% or more as a downpayment. all determine what a person/ family can or can't purchase.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Mon Aug 24, 2009
This may depend upon what is meant by "OK credit." An income of 120k with a 500 credit score is unlikely to get you approved. There are many factors that enter the equasion for credit approval.

Our recommendation is to contact several lenders for their recommendations.

Good luck
0 votes Thank Flag Link Mon Aug 24, 2009
Hello Raindancergem

My professional advice would be to first hire a buyer agent who will represent you and work in your best interest. Make sure that you hire a buyer agent who is an expert negotiator. Then if you do not know a reputable lender, your buyer agent can provide you with a few names of reputable lenders their clients have used in the past. Give the lender a call and have them qualify you.

There are new mortgage rules in place now so it can be difficult getting approved. Best to leave that to the actual lenders and not Realtors.

I am a bit concerned about you saying that you have "ok" credit. There is a lot to factor in.

Those are the first two steps in the process.

If you do not know a good buyer agent, you can certainly find one here on Trulia by reading the answers to your question and then viewing profiles. Feel free to read my blog. I think you will find it extremely helpful. http://www.reneeporsia.com

I would love to talk with you and your partner about your goals. Feel free to email me or give me a call at 215-669-0589. I can go into much more detail about the entire process and what I will do for you and your partner.

Renee Porsia
Associate Broker
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
0 votes Thank Flag Link Mon Aug 24, 2009
What do you define as "OK" credit? Typically you will need a minimum of 620 in order to qualify for a FHA mortgage however there have been some exceptions to this general rule.

Sean Dawes
0 votes Thank Flag Link Mon Aug 24, 2009
Your ability to be approved is based on a combination of factors, most importantly credit score, amount of debt compared to income, and down payment.

You should speak with a local, reputable lender who can give you an idea of what types of programs you qualify for and for how much.

Best of luck!
0 votes Thank Flag Link Mon Aug 24, 2009
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