In order to afford an $1800 dollars monthly mortgage payment you need to make approximately $72,000 a year after tax.

If you have a commitment from the lender, then they cannot just change their mind unless they found something wrong with your application (i.e. undisclosed credits, wrong information on income source, different source of down payment as what was presented initially) . If you do not have a written commitment from the lender and you only have a verbal commitment, it may be difficult to bring them to court. The way we do pre-approval is like getting a real mortgage - submit all relevant documents up front and get the lender give us a mortgage commitment good for x-days. This assumes that your financial condition would be the same or better when the mortgage application with a property is submitted.

I am not sure about your question - you need to know how much you are qualified for so you know the property value to aim for. You need a pre-approval prior to buying a house to avoid issues in the future that you cannot close the purchase because you were declined by the bank.

Powered by

Hey so my bf is planning to buy the house his mom and sister live in for them. it's being sold to him by his grandpa for $40,000 and he wants to buy it to put a roof over his mom and sister. will the bank approve him of the mortgage? we live together in an apartment right now, he earns about $1600 to $1800/month after taxes, his credit score is probably around 670. would he be approved for this loan? what do they look at when you apply for a house mortgage? i earn $2000/month after taxes and my credit score is 727. he thinks we can get a better mortgage deal if i could cosign. i'm not saying i will, i'm still thinking about it.

Agree, don't co-sign. You will be on the hook for it if he disappears or stops paying or whatever. If you want an investment/rental property, buy it yourself and charge them rent. Otherwise you may find yourself paying for a home you don't own, have no legal rights to. Can he get approved? Possibly. Investment properties (where you own the property but do not live in it) require 25% down payment, plus generally have a slightly higher interest rate. The only way to know for sure is to apply. The good thing is you can apply for free. I would encourage working with a mortgage broker as they have the best variety of loans available.

Powered by

Hey so my bf is planning to buy the house his mom and sister live in for them. it's being sold to him by his grandpa for $40,000 and he wants to buy it to put a roof over his mom and sister. will the bank approve him of the mortgage? we live together in an apartment right now, he earns about $1600 to $1800/month after taxes, his credit score is probably around 670. would he be approved for this loan? what do they look at when you apply for a house mortgage? i earn $2000/month after taxes and my credit score is 727. he thinks we can get a better mortgage deal if i could cosign. i'm not saying i will, i'm still thinking about it.

So he makes a little above minimum wage. He should not be buying a house for someone else when he has a wage that can barely support himself, and keep himself out of poverty. I mean seriously he is one step away from qualifying for food stamps. Of course he could get a better mortgage if you co-signed, but that would be insane for you to do. This guy is just a boyfriend and you want to buy a house for his mom and sister? No way, Jose.

Powered by

My bf is trying to purchase this house from his grandpa for $60,000. he just bought a car which i co-signed (they made me the main buyer cuz my credit was better so i'm not sure if that auto loan affects him too). his credit score is around maybe 650, makes about $1800 a month, and has about $2600 in credit card debt. how likely is he to get approved? does the auto loan affect his credit too? would he need me to get approved ffor this mortgage? my credit the last time i checked was 727, i make about $2200 a month, and have $600 credit card debt plus the car we bought was $23,000.

If you co-signed on the auto loan, then he will be on it also. This is good and bad for him. If the loan is being paid on time it shows the mortgage company that he is paying in a timely manner. The bad is that it affects his debt to income ratio. It really depends how many other bills he is paying each month, but with his income and the car and credit card debt, it sounds like he may need you to cosign on the mortgage.

Powered by

I am getting ready to start looking for a home. i have purchased two in the past, one for $81,000 and the payments were around $800, and the next, the loan was for about $95,000 and the payments are about $900 so i know with houses around 100k you can knock two zero's off the total and get an idea of the payment as a general rule. i am trying to figure out what i can afford next and i and i am confused because i have been watching a lot of shows like house hunters and they are getting approved for $240,000 loans and only ending up with $1800 or so as a mortgage payment. how are they doing this? i am assuming since they are calling it a mortgage payment it is also including their insurance and taxes, right? i am just trying to figure out my price range if i can afford to pay $1200-$1400 a month with a $20,000 down payment.

There are several factors in determining your mortgage payments. 1. Insurance (check with an agent) 2. Property tax (if you are working with a broker, he or she will get this information for you. Some counties have this information available on the Internet) For these amounts you take the annual amount and divide by 12. To determine the loan portion of your monthly mortgage payment, you need to know: 1. Interest rate 2. purchase price 3. down payment 4. length of mortgage (most common is 30 years) You can use the mortgage calculator at http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx to get an answer. Call a few mortgage companies/banks in your area and ask to be pre-qualified. You will need to provide your previous tax returns (it depends on how long you've been working and how stable your income is as to how many years), a recent pay stub, your social security number (the mortgage company will run a credit report). You get the best mortgage terms if you put down at least 20% of the purchase price. If you buy a home for $100,000 the down payment should be $20,000 and you will need to pay your closing costs (these vary based on city/county/state). Also at closing you may have to pay the seller for any property taxes that have been paid, but are for time that you will be the owner. My mortgage payment (taxes and the loan payment only, I pay the insurance separately) is $1,982 a month on a mortgage that started at $312,000 so I think $1,800 for a $240,000 mortgage sounds high. I hope this helps. Gary

Powered by

They lure the homeowner with lies and low payments, cancel the program last minute instead of finalizing it (as happens to 99.8% of those who are supposedly approved and get sucked into it) only to mail foreclosure documents instead of the finalized paperwork. i think it's the biggest scam in the history of mankind. the government gave handouts in the hundreds of billions to the banks to bribe them into putting homeowners into hamp (they called me nonstop for 3 months even though i was current for 9 years until i gave in, lowering my payment from $4400 to $1800 so how could i say no?). they pay the mortgage co. for each sucker they suck into the scam, then the mortgage company adds the difference that the homeowner is supposedly saving onto their loan balance without ever telling them (for those who haven't been kicked out yet i'll give you a heads up what to expect). then they say "you're not approved" for a bogus reason they make up (you can go to forums and read about everything under the sun they'll make up to not finalize the terms) then hey consider it you hadn't made your mortgage payment the whole time they had you on the scam modification and mail foreclosure documents! let's hope obama goes to jail for signing this bill, advocating it and even airing in commercials telling innocent homeowners in need to call their mortgage company (if the sharks hadn't contacted them yet) to get on this "program" so they can steal their house. what a crook of an administration we have. you might think how can mortgage companies make money in a foreclosure? 1. the government pays them for each homeowner they succeed in putting on a modification (hamp) 2. they add the difference between the fake discounted monthly payments and the regular one and add it onto the mortgage balance at the end (this goes for the less than 1% of those who get the terms finalized!! win-win for them 3. the difference between the mortgage balance and the value the lender sells the home in foreclosure - yup you guessed it, uncle obama pays them! cha-ching. bank of america, citi - they're all gonna have a nice fat christmas at poor homeowner's expense who got suckered into the worse than ponzi scam that cost them their house. mine will be auctioned off next thursday after they suckered me in last october and had me on the fake trial payments and all of the above transpired and yes i do have a lawyer but it's hard going against the government and the mortgage company and all their lawyers so it's a lost cause. i was desperate and shocked, i appealed to my congressman who wrote letters to bank of america on my behalf. i complained to the treasury department since b of a is a national bank and long story short what i learned is that they are on the bank's side 100% - i wonder if i suffered a heart attack because i felt so betrayed and in shock and had a panic attack how through lots of lies they were taking my home, lied about everything. for those of you who are asking for references, it's all over the internet, it's not a secret for the millions of homeowners who are victims of this scam, you can read up on it if interested. i just can't believe this could happen in the united states, i hate our government! they are crooks, as are the banks!! my mortgage balance is under 729k. my income and everything qualified based on the guidelines i was told. in fact they won't even tell me why they're not doing it, all i get is that the system kicked it out. i asked them to send that in writing and they never did. each time i call i get a different story. i just wish i could rewind the time and never have gone on it. billy bob - deferred still means it is owed. when i agreed to get on the program they never told me the amount they discounted my payments would be added as a lien/deffered/whatever you want to call it - that i would still owe it!!

Sounds like one more way to skim some tax payer dollars. Doesn't surprise me a bit.

Powered by

I have a unoccupied home in another state(1800 miles away) that is not selling. it is a 400k (present market value) home with about 100k equity. the market is not bad there but averages 4-6 months on the market to sell. it has been on market since feb 2010 with a pre-approved buyer that fell through after three months. i have not considered or researched any tax advantages or disadvantages. i am presently leasing a home at my new location. the mortgage, taxes, insurance will be depleting savings and 401k account eventually. at what point do i consider leasing/renting out versus keeping unoccupied and available for sale. are there any other options to minimize financial impact?

I completely agree with godged. In addition to a Property Manager, I would use a rock solid lease agreement that covers you for everything and consider making friends with a real estate attorney . Be sure your lease includes things like yard upkeep, access to the premises for showing, how clean the house must be kept for showing, pets, smoking, late fees, move-out notice, tenants allowed, guests allowed (term), utilities included, and any other specific upkeep (like pool, fountain, etc). For the tax implications, speak with a CPA. You'll eventually be able to claim depreciation and potentially some other monies. You should also consider asking some neighbors to keep an eye on things for you as well. Ask them to let you know if the yard is looking terrible or if they are smoking pot in the garage.

Powered by

Im 8 months pregnant. and i don't work and i am so bored i just want this baby to come so i have something to do with my time. i live in a house with my boyfriend, and we have to move out soon because he cannot afford the mortgage. so we have to get an apartment so i can't even work on making a nursery. i feel like im in limbo, and im so bored sitting on the couch all day. we also looked for some apartments but they don't approve me. i have good credit 696 score. but they say i don't have enough of it. my boyfriend has no credit, and has a previous eviction on his record, so they would deny him. i am scared that we cannot get a place. they asked for a co-signer, and my mom said that she would co-sign, but yet that wasnt enough for these people, they asked how i would pay for the rent. my boyfriend would pay, but he has bad credit. im so scared we wont get a place and it just seems impossible. rent would be 895 a month, and we would be making atleast 1800 a month and they said that wasnt enough. its just stupid. what. do i do.

Unfortunately a lot of apartment complexes require a total household income of at least 3 times the amount of rent. So if rent is $895 a month you and your boyfriend would need to bring in around 2685 a month.