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I currently am looking for houses in the Land o Lakes area in Florida. I have a 630 credit score, and am interested in taking out a 100k mortgage using the 8,000 tax rebate as my down payment. I make 42,000 a year but that just started recently due to a promotion at work although I have been with the same company for awhile I didn’t always make that much.

7 Thoughts on What are my chances of getting approved for a mortgage?
  1. Reply
    Chantel L
    December 7, 2012 at 1:32 pm

    I think you stand a fairly good chance of obtaining your first loan. It doesn’t matter that you just recently received a promotion with more pay. That only makes you look better and since you have been with the same company for awhile will only help. You didn’t mention how much debt you currently have. Keep in mind, that if your income to debt ratio is high, they will not approve you. Good Luck.

  2. Reply
    Lauren F
    December 7, 2012 at 1:38 pm

    Unfortunately, you have to close on a house by November 30, 2009 to get that $ 8,000 credit, so unless you are already well into negotiating a deal, there is probably not enough time to get that credit. A $ 100k mortgage is affordable for your income level. Talk with a realtor quickly and a banker to see if you can get reviewed for approval quickly, to see if it would be possible to close that fast.

  3. Reply
    December 7, 2012 at 1:44 pm

    Just a heads up…I’ve heard that they are going to be raising that tax credit in Jan. to $ 15,000. I haven’t checked it out, but thats what I’ve heard.

  4. Reply
    December 7, 2012 at 2:28 pm

    You can’t use the credit for a down payment. You receive it months after closing.

    With you lack of job history and bad credit I would be surprised if you received a loan.

  5. Reply
    December 7, 2012 at 3:08 pm

    Your credit is a little iffy and you may only qualify for an FHA loan. Plus, not many lenders are offering the bridge loan that allows you to use the tax credit prior to closing.

  6. Reply
    December 7, 2012 at 3:23 pm

    You have a fairly good chance of getting a loan, but often they are looking for a slightly higher credit rating. Also, most banks and mortgage brokers will look at your last year of earning, so they might not take your new pay at 100% face value.

    If you have a good relationship with your bank, I would start there, as they are often the most willing to work with you. They are also usually the quickest to approve/disprove, as well as not always requiring an upfront payment for the application, unless it is approved.

  7. Reply
    December 7, 2012 at 3:57 pm

    Hello Kristopher,

    You will need to use the FHA program with your credit score and down payment.

    And yes, in some States and cities, they have devised ways to use the $ 8,000 tax credit as a down payment. I presume that is something you have already investigated in your area. It is not a given, and the lender must be willing to work with you.

    What you did not mention is your other monthly debts such as car payment, credit cards, etc. Qualifying for a mortgage involves a package of items.

    Do not rely on any supposed extension of the tax credit. It is only a “proposed” bill that might never pass Congress.

    Your best bet right now. Get to a mortgage professional and apply. You are wasting time here.

    Good luck.

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