Question about mortgages and debt
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Question about mortgages and debt
| Thu, 10-16-2008 - 10:51am |
The town I live in just starting a program to help people people who work in our town and are first-time home buyers to buy a home. They help secure a very low rate and also help pay for closing costs and a down payment. My only concern is my debt. Right know, we are in debt about $15,000. (If it matters,

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Your total debt payment should not be more then 10% of your net. 20% if you add on a car payment
Before you call the bank list all our open
Hey Sarah,
I applaud you for looking into home ownership! That is great! I just was wondering, not that you asked for advice about any of this :) , but.... you don't mention if you had been considering buying a home prior to knowing about this program in your town? While that program sounds fantastic, all the regular rules should still apply. Do you have a downpayment saved? And a significant emergency fund?
Forgive me if I am jumping to conclusions, I wish you all the luck! Let us know how it goes when you contact a lender.
Let's see if I can clarify a few things:
1. The amount of debt to available credit is part of your CREDIT SCORE but the mortgage company is unlikely to look at that ratio.
Sarah
Sarah
http://marilynmonroeshop.info
Sarah
Sarah
http://marilynmonroeshop.info
Sarah
Sarah
http://marilynmonroeshop.info
gifting a down payment can be very tricky Have your parents put the money into a saving account for you a few months ahead In my day gifting a down payment was a no no.
Mary Ann
I can't say for sure if a single inquiry against your credit would hurt your score or not because there is just too much black magic in how they do credit scores but I wouldn't not apply simply because of that.
Just make sure you factor in that, as a homeowner, you'll have expenses that renters don't normally have. I.E. if something breaks down, you have to pay to fix it, you have property taxes, etc. etc. It's important to look at the total number (maintenance costs, mortgage, insurance, taxes) and not just the mortgage as compared to the rent.
Sarah
Sarah
http://marilynmonroeshop.info
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