My husband and I were really stupid over the last few years and we racked up about $10K in credit card debt!!! (I know it makes me sick to think about it!) At this point we are focused on paying off the debt so that we can buy a house. I'm sick of paying all his high interest and I'm sick of living in this apartment. Can we get approved for a mortgage and include our credit card balance? We are both first time homebuyers and we both have really good credit.Do you think I can get a mortgage with this debt?
You should be able to qualify for a mortgage, but the amount will depend on your monthly income (banks will look at the ratio of your monthly payments to total income). As a first time homebuyer, you should be able to get an 80/20 loan (80% fixed rate 1st mortgage, 20% second mortgage or home equity line of credit - will likely have a variable rate) with little to no down payment saved up.
My suggestion would be to cancel and pay off those credit cards (keep 1 for emergencies) as soon as you can. Even take a second job for a few months if need be! Then, get pre-approved for a mortgage. Determine the monthly payment you are comfortable with (don't forget about escrow for real estate taxes) and start looking for a house in your price range. Be wary of mortages with ';teaser'; rates that are fixed at a low rate for 1 - 3 years and then jump up to a payment that you can't afford.
My wife and I were in a similar situation a few years ago. We bought a house, aggressively paid off our credit cards (over $13K at one point!), and are now aggressively trying to pay off our home equity line. Proof positive that it can be done. Best of luck!Do you think I can get a mortgage with this debt?
It depends on pecentages. You mortgage payment (including P %26amp; I) can only be a certain percentage of your income, and, your total debt can only be another percentage. call a bank and have them run the numbers. Depending on your income, 10 K in debt may not really be that much.
Good luck
No comments:
Post a Comment