Can I buy a home with 765 Experian credit score?
Robbie Asked: Can I buy a home with 765 Experian credit score?
My annual income is $ 58,000 and have had this job for over 20 months. I will consider my job stable and I am confident I can land a similarly paying job within 6 months even if I lose my current job. Previous income was less than $ 30,000 per year. No any installment loans, car payments, mortgages. I have a bunch of credit cards which I pay off monthly. Experian score is 765. Do you think I can buy a $300,000 to $ 350,000 home/townhome with this income and credit score? My available cash balance is $35,000 after separately saving $10,000 for incidental expenses. Or do you think I can afford a more expensive home?
If needed, I can add my spouse as cosigner, who makes around $25,000 a year and has similar credit score.
I am in two minds if I should buy a home when the prices are down. All your answers are greatly appreciated.
Answers:
The rule of thumb is that you can qualify to borrow up to 3 times your yearly income if you have good credit.Assuming the credit scores from the other credit agencies are similar to experian, you sound like you would qualify for up to $174k alone, or $250k with your spouse.If you have $50,000 to use as a down payment you can get the $300,000 town home.If not you may have to adjust your sights.The first place to get some hard numbers is to sit down with a mortgage broker to discuss your options.Good Luck!
Unless you have a bunch of cash you have not mentioned to bring into this transaction, there is no way you are going to qualify for a $300,000+ loan even with your spouse in this.You do not want to dump all of your savings in this either.
Nothing sucks more than buying a nice house and having to cut back everything else trying to afford it.
No. You could possible get approved, but that's too much for you to spend with your income, sorry.
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