Home Buying in 85226>Question Details

pravin_23844, Home Buyer in Chandler, AZ

Our joint income is $36000/year,our credit is not yet build up,can we get loan for $100000 to buy a house costing around $125000,in Chandler AZ.Pl,ans

Asked by pravin_23844, Chandler, AZ Tue Dec 20, 2011

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Hello Pravin:

As Matt indicated, you leave too many questions unanswered in order for anyone to give you a complete answer. I always say there are 4 pillars to buying a home: Credit, Collateral, Income and Assets(2CIA).

You mention your credit as "not yet built up": This is not necessarily a negative, as it should mean you have kept it clean. If so, it really doesn't take too much credit to qualify for some home mortgage loan programs. The only way you, or anyone, is going to know is to have your loan officer pull a MORTGAGE credit report.

Collateral: That just means the home appraises at an amount which allows the purchase/refinance to move forward. Pretty much out of your control.

Income: You mention the income side, but we need to also know the liability side, to determine what is known as your "Debt-to-Income" (DTI) ratio or percentage. Conventional allows to 45% (50% if other positive compensating factors)l FHA to 50%. Again, your loan officer is the one to help you with this.

Finally, Assets: You mention getting a $100,000 loan on a $125,000 house, suggesting you are considering going conventional with an 80% Loan-to-Value (LTV). This would be $25,000 needed. Lenders also will require you have the funds for closing costs (say, $2,000-2,500--appraisal, title fees, processing fee, etc)) and prepaids (say another $2,000--real estate taxes, homeowners insurance and interest), and a few months reserves (say, 2 * house payment), for a total of about $30,000.

While putting 20% down will lower your monthly payments, make sure it is not all your money. Home ownership brings with it repairs and maintenaince; maybe you will be better with a 96.5% FHA loan or a 90% conventional (just food for thought).

I have to disagree with Christine. If you want the services of a licensed mortgage loan originator (mandatory education, credit report checked, background checked, bonded and federal- and state examination-passing mortgage profesional), you won't want to start with your bank. They don't have to employ such loan officers... And, I find they treat you like a captured audience--don't offer their best deals--not to mention the big banks are taking about twice as long to complete transactions as we are right now. Or, maybe it is just me.

Give me a call or send an email with more detaixl and we can see what you really do qualify for, and, more important, with what loan product you will be most comfortable.
2 votes Thank Flag Link Tue Dec 20, 2011

Matt and Bill both gave you good answers below as well as some of the others. Your situation seems reasonable given the limited information in this format.

Would you like to see what $125,000 will buy you as well while we work in the loan? We could build you a custom search/site with your exact search requirements for the house.
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Wed Dec 21, 2011
There is more to consider than the information you provided above. Just as in any other market the mortgage market sells many products. They all have different features and requirements. Just as when purchasing a car. You would look at the features of each car to determine which one is best for you. It is the same when shopping for a mortgage. So you should sit down with a knowledgeable mortgage lender and discuss your credit worthiness as well as what products (FHA, VA, Conventional, special grants or programs in your community for first time home owners, etc.) , different banks and mortgage companies offer different interest rates based on your credit score, different discount points (lender will explain) and different features or terms. For example. In Pinellas County, Florida there was a first time home owner assistance of $25000 that was not repayable until the buyer resold the property. The buyer had to jump through hoops but to save $25000 it was well worth it to some buyers. So bottom line is you should sit down and talk to a mortgage broker in your area. I never recommend an online applicatation since there are so many details to understand. Hope this info was helpful.
0 votes Thank Flag Link Wed Dec 21, 2011
Just doing some simple math:

$36K per year = $3,000 a month "gross" income

A $100K loan at 6% amortized over 30 years is going to be a $600 per month payment "not including taxes, insurance, mortgage insurance" if required. Those will probably cost somewhere around $150+ per month. (A good credit score will get you a better or lower interest rate wherein a less favorable credit score may result in a higher interest rate)

What is your combined take home pay after taxes? Once you subtract a $750-$850 a month house payment and any other monthly debts you have, what are you left with?

Just trying to give you a ballpark amount but you should absolutely talk to a lender. If you need to work on your credit, the lender can help you do that so you are in the best position and get the best possible rate once you're ready to buy.

Best of luck!
0 votes Thank Flag Link Wed Dec 21, 2011
You will want to speak with a lender to find out what you qualify for in a mortgage. Start with the bank where you have your accounts. Then speak with mortgage brokers. Once you know how much you will qualify for you can begin to look for homes. There are many in the Chandler area in your price range but, they go very fast. If you need the names of great mortgage brokers, let me know.
Web Reference: http://realaz.com
0 votes Thank Flag Link Tue Dec 20, 2011
There are too many unanswered questions. Only a lender will be able to answer that question for you. Do you have the $25,000 to bridge the gap between the $100,000 you intend to buy the home for and the $125,000 asking price.
If you need some help qualifying give me a call.

Thank you,

Matt Puzz
Licensed Loan Originator
Amerifirst Financial, Inc.
1910 S. Stapley Drive #209
Mesa, AZ 85204
Direct: 602-410-9333
Office: 480-682-6617
Fax: 480-344-3687
NMLS# 213777 AZ LO-0915068
Apply Online: http://www.mattpuzz.com
Web Reference: http://www.mattpuzz.com
0 votes Thank Flag Link Tue Dec 20, 2011
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