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Mortgage Loan?*

When my Fiance and I go for a mortgage loan will they look at both our incomes and credit score? And what are the determining factors for a loan officer to give you a loan?

Answers:

1) If you are both going to be on the loan, then both incomes will count. Critereia for a mortgage is dependent on the following: * Credit Score - there are 3 credit bureaus and this thing called a FICO (Fair Issac) score. The closer your score is to 850 the easier the loan is to get and the better rate (lower interest) you will be offered. * Debt to income ratio. If you earn $1,000 a month and have $750 per month in bills to pay, it will be tougher. Banks/mortgage companies like debt to income to be less than 50%, and would prefer 30% area. * Don't be getting new loans and don't apply for new credit until after you have purchased your new home. These "inquiries" will bring down your credit score. Look up your credit online now. You can get it done very inexpensively and know where you stand. Hope that help

2) The Loan officer will look at both of you if you both want to buy the house together. If only one person is buying then they look at the person who is buying. Ocassionally the loan officer will only look at one person if the credit and salary are good for one person and a problem for the other person. They can do this with married or unmarried couples. The loan officer is going to look at your credit report and will estabish a number score. The higher the score the better. The loan officer will likely look at the amount of income you have, the more then better. The loan officer will next look at your debts. (what you owe, for other mortgages, vehicle loans, credit card loans, student loans, etc.) They will also look for your assets. How much money you have had for the last 90+/- days saved. This can be in checking, saving accounts, 401K (B), IRA's, Stock and Bonds, etc. There are many different loan products. Such as, if you have high incomes, but little savings. Or Have lots of saving but little income. The two situations will have different types of loans that are suited for your needs. The best advice always is to have as much money as possible saved toward buying a property. If you have zero savings, you may want to wait to accumulate some savings. Do a budget, give up items you can LIVE without, e.g cable TV, restaruants, etc. The higher your credit score will equal the best loan rate. Especially if you have adequate income for the price range that you desire. While it may be a good investment to your future to get into a house prior to getting the best loan rate, you will have to run the numbers to make sure that it works for your situation. Typically you can own a house that is higher than your current rent, since there will be a significant tax reduction for MOST homeowners. As with all major purchases it is necessary to look at the whole picture. Good luck this should be a great time to buy, interest rates are historically reasonable and in most area in the world, the list price has been stable or in some areas declined. Good luck and do your homework. Lots of great books on home buying in all libraries. The more educated you are on the subject the more comfortable you will be with the different decisions you will make in the process. .

3) Phifer's advice is great! Yes, the more educated you make yourself the better it will be for you! It should be a fun and exciting during the entire process and you are jumping out of your skin from excitement as you're heading down the road of becoming a homeowner!! yay! If anytime during this process you're feeling any doubt or uncomfortable, then trust your instinct...something is NOT right! Stop and find out what it is that's making you feel uneasy! Get the answer, dont stop until you get that EXCITEMENT back before you hit that closing table....because once the loan has closed, it would be too late to make any changes and there's not a damn thing you can do about it! Just dont let anyone make you feel you have do something you're not 150% comfortable in doing, making you feel as if there are no other options for you...because YOU DO!

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