Can we be Pre-Approved? How much?
Credit: 710-Mine 750-His NO negatives Income: $51,000 My fiancé works for a delivery company and in May he will have worked there for 1 year. He is a 10 99’d employee. I would say in the next 6-9 months he plans on buying his own delivery truck and becoming part owner on the company. Before he worked for a Sports Retail Store for 3 years. I work for a construction company and in May I also will have been with the same company for 1 year. I am an hourly employee. I finished school for Accounting and my current position is Accounts Receivable Billing. My prior position was an accounting assistant with another construction company where I worked for 1 year. Debt: $259.00 Monthly lease for a car. $100.00 a month that I contribute to a Simple IRA for retirement. My employer also contributes a certain percentage. (not sure if the IRA counts as debt) Total Cash Asset: 15,000.00 Credit History: His: Owns a 2006 Dodge Ram- paid off. Owns a 2006 ATV –paid off Wells Fargo Credit card $2500 limit-zero balance Macy’s Credit Car (not sure what the limit is) –Zero balance Polaris Off-Road company $6000 limit-zero balance Mine: Nissan auto lease-$259.00 Monthly Bank of America Credit card $7000 limit-zero balance Mervyns Credit card $600 limit-zero balance (I don’t if they count since they went out of business) We don’t plan on buying till 8 months from now…some time around September-October. With house prices being low and interest rates being low we would really like to take advantage of it. Instead of moving out and renting why not buy? We are more then willing to buy a condo but would really like a 2 bedroom fixer upper kind of house. 8 Months from now we hope to have an extra $15,000 for down payment which will then make our total cash available for down payment $30,000.00 Area: Los Angeles CA Downside….In 8 months from now I will only be 21 years old and he will be 23. I’m worried we are looked at as a risk for being young. Thank you so much in advance for all your advice. This tax season he will have a 10'99 and a W-2...3 months ago he started getting taxes taken out of his paycheck.
Public Comments
- Don't worry about your age. I bought a bunch of homes prior to age 25. Your credit scores are what count and yours are fine. Why don't you go to a local mortgage company and get some exact figures? They pre-qualify people all the time and will tell you exactly how much home you can afford.
- No, you two are making good financial decisions, and are on track to buy your first home. You are avoiding debt, IRA contributions are not debt. It's important to contribute for your future and leave the money there to grow, even if at some time you can't make more contributions. You have good credit, and decent savings for down payment with limited debt. With solid work history, down payment and good credit, you should be pre-approved, and should be able to gain loan approval. Most common mistake of first time buyers is to overextend themselves: Don't buy More home than you can EASILY afford. Rehabbing, even doing it yourself, costs an amzaing amount which adds up. Bought our first home with similar ages. Rule of Thumb: No more than 1/4 of monthly income on housing. No more than 1/3 with utilities, taxes, insurance, etc.
- the only flaw is that he Will be buying a truck and changing work status and there comes the rub. Most underwriters want self employed 1099 people on the job 2 years with full tax returns.
- Require 2 years job history- no exceptions. Other than that everything sounds perfect- don't charge anything else before you buy. Lenders cannot discriminate due to age but you don't say how long your fiance has been working (well you say since May) but did he work before? If not you will be turned down due to the 2 year history. Also, don't let him go self employed before you buy- you need 2 years of self employment income with the same company in order to buy.
