My boyfriend and I are considering buying our first house. Can someone assess our situation and let me know our odds of qualifiy for a mortgage?

Asked by Justlooking, Tulsa, OK Wed Dec 29, 2010

My boyfriend and I (not married) are looking at buying our first house. We have not attempted to get preapproved for a loan. I'm hoping someone can assess our situation.

*Combined Gross Income: $52,0000 (Aproximately $4,400 Monthly)
*Monthly expenses: Approx $1,400.
*We work for the same company. I've been here 3 years. He has been here 4 years, however he briefly left this job to work for a different company for 7 or 8 months until he was laid off, at which time he came back to this employer.
*He has a credit score in the mid 700s and no negative info on his credit report.
*My credit score is in the low 700s. I had a car repo-ed 4 years ago, which is still on my report.
*He has over $1,000.00 in his savings and several $100s in his checking.
*My checking is usually in the lower $100s at any given time. I have a few thousand in savings and a $5,000 CD
*We have a shared savings with $1,000

What are our odds of qualifying for a mortgage loan given the above information?

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Answers

37
Mark Mckee, Agent, Norman, OK
Wed Dec 29, 2010
To Just looking:
My suggestion to you is to talk with a lender that you and/or your boyfriend have used before that has done business with you. I would then also get another lender and have them both provide you with a GFE, (Good Faith Estimate) showing you the fees associated with their loan. They could also let you know the amount they would be willing to lend to you based on your financial situation.
I would then highly recommend seeking an experienced Realtor that cares about protecting your interest as a Single Party Broker, working for you as mentioned by another Realtor. Mr. Russell Benson is one Realtor I would personally recommend to you.

Best of luck and Happy House Hunting!

Mark McKee, KW Commercial Real Estate
405-820-8065
1 vote
Carl Henker, , 95928
Wed Dec 29, 2010
Your odds are good for obtaining a loan, based on the information you have supplied. Your first step is to sit down with a local loan officer and get pre approved. During this process you can discuss any concerns regarding the financing. After you loan officer gives you the go ahead then get together with a Realtor and begin your home shopping. Your loan officer should have some good referral for a Realtor.
1 vote
Larry Oats,…, , Broken Arrow, OK
Wed Dec 29, 2010
Based on the information above you should be fine at 75K. An FHA loan is probably you best bet with the lowest downpayment. Give me a shout and I can give you a complete breakdown.
Larry
1 vote
Spirit Messi…, Agent, Tucson, AZ
Mon Feb 21, 2011
Yes, a lender can do that for you at no charge. You can meet with them, a lot of the time go over information on the phone and get pre-approved. If you dont, they can even help you on what to work on so you can in the future. That way, while you are saving for the downpayment you can also be working on your credit score.

If you dont know any local lenders, several answered on here for you to chose from OR start with your local bank as you already have a professional relationship with them.
Best of luck
Spirit
0 votes
allan erps,A…, Agent, Pearl River, NY
Mon Feb 21, 2011
Hello, not trying to be negative here, but not seeing alot of money for down payment or closing costs. Would venture to guess that if property is inexpensive enough in your area an FHA loan seems to be the best available option. Best of Luck!
0 votes
Robert Lee, Agent, Arlington Heights, IL
Mon Feb 21, 2011
Your looking Great! Hurry up intrest rates are on the rise. FInd an experienced recommended local real estate agent and best of luck to you!
0 votes
Jennifer Bla…, Agent, Owasso, OK
Fri Jan 14, 2011
I cannot see how or why, given this information, you would be denied. Speak to a knowledgable, reputable lender and get approved now while rates are still down and prices are great! If you need information on lenders, I'd be happy to help you.

Good Luck!

Jennifer Henning
Realtor l Green Certified
0 votes
Sharyn Willa…, Agent, Blanchard, OK
Mon Jan 10, 2011
congratulations on this first step. Like others have said, GET PREAPPROVED first. I am here in the Tulsa Area and would love to give you some referrals on some great lenders. Make sure you work with a real estate agent who loves working with first time homebuyers because this process is time consuming and creates alot of stress (if you allow it). Don't let this process ruin your relationship because unfortunately it does! Since this is your home, don't spend more than you feel comfortable spending

One suggestion when you begin looking is look in areas where you don't have to pay downpayment. I know in areas such as BA, Glenpool, Sapulpa, Owasso, etc you can get homes in some of these areas for 0 down.

If you have any further questions, I would love to assist you along the process. Enjoy the Journey...Make Memories...Thi
0 votes
Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Thu Jan 6, 2011
Hi, Justlooking

Based on what you've shared, you should be more than fine. Get with a local lender to review all your information to be certain and to get preapproved. And instead of a major bank like B of A, I would also speak to local mortgage bank. If you do, you should fine that the entire process and experience will be faster and more beneficial, professional, and rewarding.
0 votes
Voices Member, , Red Wing, MN
Wed Jan 5, 2011
Well your odds are probably pretty good.
When you say your Monthly expenses are 1400 does that include the rent for the place you are at now or is that all of your other debt that shows up on your credit report?
What type of property are you looking at? Condo or single family home?
What price range are you looking?
0 votes
Russell Bens…, Agent, Oklahoma City, OK
Wed Jan 5, 2011
It looks like you have received many responses, most of which offer some really good advice. I'm going to inject something that is my personal opinion but shared by many others.

You should consider getting qualified with a good LOCAL lender. Someone with whom you can shake their hand or go into their office if you need to. I would never make a loan application online unless the lender you are dealing with has that option and only if that site is secure. You should never, ever give your social security number to anyone other than someone you know and trust and if you do it online, make 100% sure the site is secure.

I wish you both the best of luck. Owning a home is one of the best things we will ever do in our lives

Russell Benson, Realtor®
Prudential Alliance Realty
0 votes
Jim Pendleton…, , New York
Wed Jan 5, 2011
You appear to be qualified, but go to http://www.prequalfree.com to be sure. It's free and easy. Also, consider researching local grant programs available at your local town community offices. Many towns wqant you to settle down in thier area, so they offer assistance that requires you to stay in your home for a specific lenght of time, otherwise you have to pay back what they gave you.

Hope this helps.

Jim Pendleton – Mr Mortgage , (google me) having been blogging and answering hundreds of questions, as well as helping thousands of clients like you. Jim Pendleton is a person of personal integrity and someone you can trust. Being an affiliated with a Federal Chartered Bank, operating in all 50 states, doing FHA, VA USDA, construction loans, residential and commercial lending. We cover all scenarios and can help you accomplish your goals and desires.
Thanks,
Jim Pendleton
Mr. MortgageTM direct lender -All 50 States
631-451-7400
0 votes
John McVoy, Agent, Murfreesboro, TN
Wed Jan 5, 2011
also if you need a Lease Purchase go to http://www.HunleyHomes.com and see what they have... we do lease purchase homes as well
thank you
John McVoy
615 300-5326

http://www.HomeSalesMidTN.com
Web Reference:  http://www.hunleyhomes.com
0 votes
John McVoy, Agent, Murfreesboro, TN
Wed Jan 5, 2011
simply apply for a loan with a lender.. they should be able to tell you if you qualify and for what loan product. don't just stop at one.. get the input of a few. i have people that can help you if you still need help.. thank you
John McVoy
615 300-5326

http://www.HomeSalesMidTN.com
0 votes
Leslie Corco…, , Lees Summit, MO
Wed Jan 5, 2011
There have already been some great answers posted addressing your question, but I would like to offer another idea for you two consider. Buying as an unmarried couple does have some unique complications. I would suggest that you get pre-qualified, then search for lease-with-option-to-buy homes. Although not as easy to come by, lease with option is becoming more popular in this market. The advantage is, you and your boyfriend, depending on the length of the lease portion of the agreement, will have a chance to see if this really works for you. It will buy you time. If you go your separate ways for some reason, or employment status changes, at the end of the lease it is YOUR option whether or not to go through with the purchase.
0 votes
Kathy Mccoy, , New Bloomfield, MO
Wed Jan 5, 2011
I think your odds are very good. I would suggest you contact a lender and see what they say. It is always better to have your financing in order before you start looking at houses.
0 votes
Dan Tabit, Agent, Issaquah, WA
Mon Jan 3, 2011
Justlooking,
The issue of your marital status is not an issue we as agents or lenders can consider. The issue it presents to you will be how you hold ownership of the home. You should do some research regarding Joint Tenants with Rights of Survivorship and Tenants in Common as well as other "vesting" options which may be available to you in OK.
The question of what happens if... can be answered in advance and if your situation changes, adjusted to the occasion.
0 votes
Myra Gouger, Agent, Las Vegas, NV
Mon Jan 3, 2011
Speak with a bank or mortgage professional in your area. There are too many factors involved in getting a mortgage. Without seeing someone's credit report and mortgage application, it is difficult to say if you qualify for anything, let alone how much.
0 votes
Don Tepper, Agent, Burke, VA
Mon Jan 3, 2011
I defer to the many answers below that suggest that you would qualify. And that's fine.

However, Dan Chase raises an excellent point. There can be a variety of legal complications in two unmarried persons purchasing real estate together. You two should have some up-front agreement specifying what'll happen to the property if one of you wants out--of either the relationship or ownership.

For instance, from what you've provided it looks as if you'd probably be putting up most of the downpayment (probably from your CD). And while you provide a number for your combined gross income, does one of you earn significantly more than the other, and thus would be expected to pay more on a monthly basis for the mortgage? How would that be reflected in any possible sale of the property?

Also, while the lenders who've answered are far more knowledgeable than I am, it doesn't look like you two really have sufficient savings for a downpayment plus a reserve fund. You have a few thousand in savings and a $5,000 CD. He has $1,000 in savings, and you two jointly have $1,000 in savings. That comes to a grand total of about $9,000. You don't mention any debt (credit cards, car payments, etc.). You suggest--and others seem to agree--that $75,000 is a reasonable purchase price. Even then, you'd need $2,600 as a downpayment plus closing costs (which a seller might be willing to help pay.) So, best case scenario, you'd have maybe $6,000 in savings after the purchase.

That is a very thin margin.

There's a difference between what you COULD qualify for and what you SHOULD spend. Please keep that difference in mind.

In any case, though, please look into some sort of formal agreement on the disposition of the property before you buy it.

Hope that helps.
0 votes
Nikki A, Edw…, , Woodbridge, VA
Sun Jan 2, 2011
We do this everyday and we are also Credit experts. We can help you out for sure and we are from the Yukon, OK area. My husband used to work for the Oklahoma County Sheriffs Dept. Give us a call and we will help you, god bless. 405-494-4984 Nikki
0 votes
Stephen Toker, , 30707
Fri Dec 31, 2010
1. If you get married and can't get along, you will end up needing to dispose of the property some way anyhow.
2. Marital status may not be used in determining a loan.
3. This is an excellent time to buy a home: do the opposite of what the sheep are doing - if you wait until the market rebounds, you may not get the great interest rates available today and sellers start to think that THEIR home is uber valuable.
4. Your best bet is to talk to a mortgage banker. Do it early, then go look for a home.
5. The advice of many of the agents so far is valid> in Oklahoma, a Single Party Broker acts as your advocate, and by law serves only your best interest. Driving the neighborhoods and calling each listing agent can waste a tremendous amount of time and gas. A good agent can point you to exactly the right properties for you to look at. Being pre-qualified for a loan will inform the agent as to price range.

Let us know how you did. We're in this business because we care about people and want to see them own their own homes. In the long run, it's one of the best paths to financial security.
0 votes
James Judd, , Oklahoma City, OK
Thu Dec 30, 2010
I would say you have a pretty good chance of getting pre-approved. The person who can tell you for sure is Charles Foster with Gateway Mortgage. Give him a call at 607-2729 and he'll be able to tell you whether you can or cannot. He's great to work with and it won't cost you anything to find out.

I would caution you guys to think a lot before you buy a house with someone you aren't married to. It is a big decision and its not one you can just get out of really easily if you break up. You should probably figure out if one of you can buy it on their income alone and if so buy it in one name, or wait until you are married.
0 votes
Wells Bridge…, Agent, OKC, OK
Wed Dec 29, 2010
It looks like you're in good shape... Well done on your credit scores. 640 is the magic number. I'm a realtor here in OKC with Keller Williams Northwest. We have a fantastic lender onsite. His name is Gregg Long, he's with 1st American Mortgage. Give him a call. He can run your credit and tell you quickly where you stand. There's no charge for this service. 948-7500

Let me know if you'd like to start looking for a home. I'd be happy to help.

Best of Luck,
Bridgett Wells

Keller Williams Realty Northwest
651-9320
948-7500

bridgettwells@kw.com
0 votes
Tim Epps, , Tulsa, OK
Wed Dec 29, 2010
Your situation should not prevent you in any way from buying a home in the $75000 range. Based on what you show, the repo should not be a problem. Neither is the fact that you are not married. (This does not affect the mortgage but does affect the title to the new home.)

I would be happy to review your situation more completely & confidentially. The difference between loan approval & loan suspension is an honest evaluation by a quality loan officer. You may call my office 918-528-4010.

I am a licensed Mortgage Loan Originator in Oklahoma.

Tim Epps
NMLS ID 295785 - OK MLO 05061
Fairway Independent Mortgage Corp
5200 S Yale Ave Ste 102
Tulsa, OK 74135
tim@myfairway.net
918-528-4010
0 votes
Doug Burleson, , Oklahoma City, OK
Wed Dec 29, 2010
Just looking:

Based on your info, it looks like you would qualify. I would recommend calling Dawn Neu at First Mortgage and she can pre-qualify you before you start your home search. Her email is dneu@firstmortgageco.com.

If I can assist, please let me know
Web Reference:  http://Dougburleson.com
0 votes
Deanie Colli…, Agent, Piedmont, OK
Wed Dec 29, 2010
Your odd are great. Please call me at 405-834-0833. Thank you for your inquiry.
0 votes
Cheryl Cupps, , Oklahoma City, OK
Wed Dec 29, 2010
This is actually a great time to buy! There is bond money available for first-time homebuyers to help with a downpayment. This money is available and waiting for you! Call or text me at 405-365-4314 for more information. With your credit scores and income, you should not have a problem obtaining a loan!
0 votes
Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Wed Dec 29, 2010
Justlooking, I think that the best thing to do is to contact someone like Larry, who is a loan officer who spends time answering questions on Trulia, and who lives in your state so is familiar with issues that are state specific. He will run your credit and see what need to be included in your debt ratio from what you are calling your monthly expenses. Take a look at what you spend right now on rate, and you will get an idea of what you can manage as far as a mortgage payment goes. A car repo isn't all that different from a foreclosure. It is a debt that you were not able to pay, so they took it back. It is one thing to lose your car, it is another to lose your home. If you can mae this work, there is nothing wrong with it. You just don't want to start off your life together struggling over how to pay the bills. It sounds like you are doing a better job of saving than he is, so you have to really think hard about this. Also, what will happen when your family grows? Do you expect your income to stay where it is, or will you be able to advance in your company? Lots of questions need to be answered that have nothing to do with the cost of the monthly mortgage payment.
0 votes
Maryam Danes…, Agent, Oklahoma City, OK
Wed Dec 29, 2010
Hi , My name is Maryam and am a loan officer at OKC, I am just wondering how long has it been since your husband's return to his original or current job, about your car, since it has been 4 years ago therefore, it won't have that much weight in your qualification. I can qualify you for FHA, loan, please call me at 405-819-6537, this is a best time to think of house because there are a lot of bargain homes that I can help you with that also. If you have any questions, call me 819-6537
0 votes
Dan Tabit, Agent, Issaquah, WA
Wed Dec 29, 2010
JustLooking,
I'm a licensed lender as well as a Realtor and the issues that jump out at me are your monthly expenses and down payment. Lenders typically cap your debt to income ratio at 45%. If your gross income is $4400 this would allow a total debt payment, including mortgage at $1980 per month. Subtracting your current expenses of $1400 would only leave $580 per month for a new mortgage payment. If you have non-credit items in your $1400 expenses, this will change.
Regarding your down payment, you have some money saved which is great, but you'll likely need some reserves too. This is back up money in case you or your boyfriend lose a job or have an unexpected expense. FHA currently wants at least 3.5% of the purchase price in down payment. If you purchase at $7500 you’ll need $2625 for down payment and still have to work out closing costs.
If you were in my state, I'd be happy to meet with you complete a credit application and collect a few documents and get you pre-approved with one of my lenders. Chances are you'll need a letter of explanation regarding your repossession.
Once you take this step, you'll know for how much you qualify for and what if any additional steps you may need to take. Find a local lender who will help you. Good luck in your home shopping.
0 votes
Russell Bens…, Agent, Oklahoma City, OK
Wed Dec 29, 2010
I also wanted to mention that you should really consider working with a Realtor® who will give you Single Party Representation. This simply means they will represent your interests exclusively, however if a Realtor® has both the listing and works with you as a buyer, you might not be able to get the Single Party Representation. A Broker CANNOT be a Single Party Broker to both buyer and seller in the same transaction. This is very important and cannot be overlooked. Local contacts for a Realtor® and the lender are very important as well. For great info about the local market and info on other things, go to http://www.OkcRealtors.com. That is our local Real Estate associations website!

Good Luck,

Russell Benson, Realtor®
Prudential Alliance Realty
405-641-4442
rbenson@okcrealtors.com
Web Reference:  http://www.RealEstateOKC.com
0 votes
Matt Pickett, Agent, Colorado Springs, CO
Wed Dec 29, 2010
Easiest way to begin the process without obligation is to call your local bank or try a call to the larger firms like Bank of America, Chase, or Wells Fargo. They can review your information and give you a prequal letter within minutes and you do nothing but answer questions.
0 votes
Stephen Toker, , 30707
Wed Dec 29, 2010
It sounds to me as though you do not have a lot to worry about. The car repo is not good news, but if you have paid off the deficiency (the amount owed, less the amount they got for it once they repo-ed it) you should be in good shape. Your credit scores are high enough for an FHA loan, and may be enough for a conventional loan: the best thing to do is to talk to a mortgage banker. You have some liquid assets, which speaks well for you, too. His employment history is not a problem. Again, since making loans is like shooting at a moving target, you really need to consult a mortgage banker, since they have to keep current on underwriting guidelines. The lending industry has gone back to solid underwriting, which is a good thing for us all. Best of luck. Just take a deep breath, don't ask why they need all that documentation, and get the papers they need to them right away. It's a bit frustrating, but well worth the effort, and the 'hurry up and wait"
0 votes
Russell Bens…, Agent, Oklahoma City, OK
Wed Dec 29, 2010
Personally I think the odds are really good, however you need to make a loan application with a good local company to determine what you qualify for, the rates and fees. A seller can still contribute up to 6% of the purchase price on a FHA loan so $100,000 price will get you up to $6,000 in assistance.

Do not apply with multiple companies but rather go with one and then maybe shop those fees with one other lender. The best info you can get on a lender is talking to friends and family members and others who have recently bought or refinanced a home. A real estate pro can also help but talk around and find out from others who they like. Do NOT use anyone who is going to charge you extra fees to do the loan, especially when it is not necessary.

If you have any other questions, please do not hesitate to call or email me anytime!

Russell Benson, Realtor®/Prudential Alliance Realty/405-641-4442/rbenson@okcrealtors.com
Web Reference:  http://www.RealEstateOKC.com
0 votes
Justlooking, , Tulsa, OK
Wed Dec 29, 2010
Will the fact that we are not married or the vehicle repo on my credit report affect the probability of us qualifying for a mortgage loan? Those are the main things that worry me. I think we make plenty of money and have a good cushion of savings, but this is all new to me, so I want to know what may be potential speedbumps once we get the ball rolling.
0 votes
Justlooking, , Tulsa, OK
Wed Dec 29, 2010
Additional Information: We are not trying to buy anything beyond our means. We really don't want to buy anything more that $75.000.
0 votes
Mike Malvey, Agent, Fort Collins, CO
Wed Dec 29, 2010
Overall you look to be in good shape. You should get in touch with a local realtor who can guide you through the process which will include talking with a local mortgage lender. Would you like me to refer you to a realtor in your area?

Mike
Mike@MikeMalvey.com
0 votes
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