How much house should I buy?

[CogSciGuy]

I’ve had the same job for 4 years. My FICO is like 675 right now (bankrupcy 4 years ago). I have $10K saved for down payment.

I’m not sure on the timing of when I’ll buy just yet. I’ll probably be waiting at least a year to save another $20K or so and boost the FICO a bit–assuming prices don’t start to increase.

[HLS]

Any loan (max $417K) over 80% of the purchase price will require mortgage insurance or a higher rate to compensate.
Depending on the rest of your profile, you may or may not qualify for a loan next year.

Do you actually know how to raise your credit score ?

I don’t think that you need to worry about prices going up around here.

A lender might allow you to borrow with total monthly payments and debt up to 60% of your gross income, more than you are comfortable with.

[HLS]

Any loan (max $417K) over 80% of the purchase price will require mortgage insurance or a higher rate to compensate.
Depending on the rest of your profile, you may or may not qualify for a loan next year.

Do you actually know how to raise your credit score ?

I don’t think that you need to worry about prices going up around here.

A lender might allow you to borrow with total monthly payments and debt up to 60% of your gross income, more than you are comfortable with.

[HLS]

Any loan (max $417K) over 80% of the purchase price will require mortgage insurance or a higher rate to compensate.
Depending on the rest of your profile, you may or may not qualify for a loan next year.

Do you actually know how to raise your credit score ?

I don’t think that you need to worry about prices going up around here.

A lender might allow you to borrow with total monthly payments and debt up to 60% of your gross income, more than you are comfortable with.

[HLS]

Any loan (max $417K) over 80% of the purchase price will require mortgage insurance or a higher rate to compensate.
Depending on the rest of your profile, you may or may not qualify for a loan next year.

Do you actually know how to raise your credit score ?

I don’t think that you need to worry about prices going up around here.

A lender might allow you to borrow with total monthly payments and debt up to 60% of your gross income, more than you are comfortable with.

[HLS]

Any loan (max $417K) over 80% of the purchase price will require mortgage insurance or a higher rate to compensate.
Depending on the rest of your profile, you may or may not qualify for a loan next year.

Do you actually know how to raise your credit score ?

I don’t think that you need to worry about prices going up around here.

A lender might allow you to borrow with total monthly payments and debt up to 60% of your gross income, more than you are comfortable with.

[kev374]

I would say with 20% down your front-end/back-end ratios should be 28/36. In addition you need 6 months reserves at a minimum (i.e. 6 months of your monthly outflows), $5k or so emergency fund for unexpected maintainence, closing costs and you *may* need funds for furnishings and moving costs.

So, buying a home is not the *JOKE* many people have made it out to be in recent years, it is a HUGE commitment.

[kev374]

I would say with 20% down your front-end/back-end ratios should be 28/36. In addition you need 6 months reserves at a minimum (i.e. 6 months of your monthly outflows), $5k or so emergency fund for unexpected maintainence, closing costs and you *may* need funds for furnishings and moving costs.

So, buying a home is not the *JOKE* many people have made it out to be in recent years, it is a HUGE commitment.

[kev374]

I would say with 20% down your front-end/back-end ratios should be 28/36. In addition you need 6 months reserves at a minimum (i.e. 6 months of your monthly outflows), $5k or so emergency fund for unexpected maintainence, closing costs and you *may* need funds for furnishings and moving costs.

So, buying a home is not the *JOKE* many people have made it out to be in recent years, it is a HUGE commitment.

[kev374]

I would say with 20% down your front-end/back-end ratios should be 28/36. In addition you need 6 months reserves at a minimum (i.e. 6 months of your monthly outflows), $5k or so emergency fund for unexpected maintainence, closing costs and you *may* need funds for furnishings and moving costs.

So, buying a home is not the *JOKE* many people have made it out to be in recent years, it is a HUGE commitment.

[kev374]

I would say with 20% down your front-end/back-end ratios should be 28/36. In addition you need 6 months reserves at a minimum (i.e. 6 months of your monthly outflows), $5k or so emergency fund for unexpected maintainence, closing costs and you *may* need funds for furnishings and moving costs.

So, buying a home is not the *JOKE* many people have made it out to be in recent years, it is a HUGE commitment.

[CogSciGuy]

I already got qualified for a loan with a couple different mortgage brokers a month or so back, before I backed out and decided it was dumb to go with an IO ARM, esp. with the market tanking for the foreseeable future. So I’m not too worried about what a bank is willing to lend me–I’m sure I can get much more loan than I actually want.

As far as raising my score…I’m just making regular credit card payments on two cards and then my car and student loan payments. Is there something you’d recommend above and beyond that?

[CogSciGuy]

I already got qualified for a loan with a couple different mortgage brokers a month or so back, before I backed out and decided it was dumb to go with an IO ARM, esp. with the market tanking for the foreseeable future. So I’m not too worried about what a bank is willing to lend me–I’m sure I can get much more loan than I actually want.

As far as raising my score…I’m just making regular credit card payments on two cards and then my car and student loan payments. Is there something you’d recommend above and beyond that?

[CogSciGuy]

I already got qualified for a loan with a couple different mortgage brokers a month or so back, before I backed out and decided it was dumb to go with an IO ARM, esp. with the market tanking for the foreseeable future. So I’m not too worried about what a bank is willing to lend me–I’m sure I can get much more loan than I actually want.

As far as raising my score…I’m just making regular credit card payments on two cards and then my car and student loan payments. Is there something you’d recommend above and beyond that?

[CogSciGuy]

I already got qualified for a loan with a couple different mortgage brokers a month or so back, before I backed out and decided it was dumb to go with an IO ARM, esp. with the market tanking for the foreseeable future. So I’m not too worried about what a bank is willing to lend me–I’m sure I can get much more loan than I actually want.

As far as raising my score…I’m just making regular credit card payments on two cards and then my car and student loan payments. Is there something you’d recommend above and beyond that?

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