I'm interested in (potentially) buying a home soon, but I'm not sure if I would be approved for a mortgage in the price range I'm looking for.
I live in Florida and I'm 21 years old. I have been serving for the past three years, and on paper I make close to 30k annually. I claim mostly everything, but not everything. I would guess I make maybe an extra couple hundred bucks a month at most. This is working about 25-30 hours a week. If it matters, I go to University full time and intend to graduate in about two years with a worthy degree. I pay for University out of pocket and have a single loan in the amount of $3000 that I used my first semester of University.
I've been living in an apartment alone for the past two years, my monthly bills are about $1500/1600- rent $900, electric/water $100-150, car payment $200 (really $150, but paying extra to pay it off quicker), insurance $100, phone bill $50, food $150-200. I've had no problem handling these bills the past couple years and have been living very comfortable.
My credit score was about 750, it recently dropped to roughly 700 because my credit utilization was too high (forty percent). I just paid off a lot of my debt and now my utilization is around 20 percent, maybe a bit lower, so I'm hoping that will reflect in the next couple of months. I've had credit established for about a year and a half, never missed a payment, never had a late payment, etc. I also have about 8k in savings and will continue to pad that as the months go on. I'd like to have at least 10k ready before I consider purchasing a home.
I do plan on talking to a mortgage broker to get professional advice, but I'd like to get some general advice to see if getting a mortgage for around 150-200k is feasible, given the circumstance, before I get a professional's help. As a side note, I do plan on having a room mate and charging rent, so I'm certain that I will be able to handle the payments and other costs involved since my mortgage will be effectively cut in half, but I will be applying for the mortgage alone so I don't think it really matters in the eyes of the broker. It's no big deal anyways, because I need to know if I would be able to afford a home solely based off of my salary.
There are obviously a lot of things to take into consideration both before and after purchasing- general upkeep on a house versus an apartment, any remodeling (I use remodeling loosely- repainting, new appliances, etc) what area I will work after I graduate, market volatility, etc. I would also like to hear about anything I have not considered here or things I may not be aware of.
But first and foremost, what is the likelihood of being approved for a mortgage given the circumstance?
Submitted February 25, 2018 at 09:12AM by Unspoken_Myth http://ift.tt/2EREGGk
