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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 46567
Experience:  29 years of experience as a tax, real estate, and business attorney.
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Hi. You answered a mortgage question for me before. I have

Customer Question

Hi. You answered a mortgage question for me before. I have another one and wanted to come back to you. I'm trying to find out if I can qualify for a $348,000 house. The mortgage person I have been working with seems to think so but I think once it gets to the underwriters it's not going to be right.
My GMI is $8666.00
Car Payment is $270
Student loans are $530
Credit Card minimums are $450
I have $22,500 for DP and closing
Owner will give $5,000 towards closing
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good evening. The basic guidelines for qualification for determining the highest payment you could qualify for based on credit rating are as follows:

Medium Credit
The lesser of
28.000 % of gross income or
36.000 % of gross income less fixed monthly expenses

Good Credit
The lesser of
36.000 % of gross income or
42.000 % of gross income less fixed monthly expenses

So if you are trying to buy a $348,000 house with a downpayment of $22,500, you will be financing approximately $325,500.

At 5% interest rate with a 20 year amortization, your mortgage payment would be $1744.67/month. If your GMI is $8666 and your credit is good, 36% of your GMI is $3119.76; If your credit is medium, 28% of your GMI is $2426.48. I don't know enough of your fixed monthly expenses, but yours seem minimal so based on what I'm seeing, you should not have a problem qualifying for this mortgage.



Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!
Customer: replied 1 year ago.
So I think you read my question a little wrong. I will be putting down 5% for the down payment. Right now mortgage rates are 4.5%. Since I'm only putting down 5% there will be PMI. So when they are working to qualify that ratio, won't the have to take PMI, real estate tax and Homeowners insurance into consideration since I will be paying that to the bank? Also, the rest of the money I have saved would go towards closing cost. If I don't have enough cash at closing I'm assuming that would just automatically keep me from being able to close.
Expert:  Richard replied 1 year ago.
Thanks for your response. When I plug your information (including the 5% downpayment, PMI Property Tax, and insurance) into my mortgage qualification calculator, at a medium credit you can qualify for a 268,657.88 mortgage and with good credit you can qualify for a $347,103.02 mortgage ($365,371.60 home price). So, as long as you have good credit, you should qualify!
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 46567
Experience: 29 years of experience as a tax, real estate, and business attorney.
Richard and 5 other Tax Specialists are ready to help you
Expert:  Richard replied 1 year ago.
Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help! For easy access, my bookmark is: http://www.justanswer.com/law/expert-legalbeacon/

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