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 Nonentitled |
Question about credit card debt and getting a mortgage |
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Posts: 698 (11/09/08 9:31 AM) Registered User |
Okay, so....say a person has $20,000+ in credit card debt, and a fixed monthly income of about $1,200.
What are the odds that they could qualify for a mortage for about $75,000? |
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B DeBrun |
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Posts: 18566 (11/09/08 9:34 AM) |
What's your FICO score?
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pie123452001 |
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Posts: 32696 (11/09/08 9:36 AM) Registered user |
Why so much credit card debt? Tell that person to pay this off first before taking on a mortgage.
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Nonentitled |
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Posts: 699 (11/09/08 9:36 AM) Registered User |
It was 714 last month.
There have never been any late payments on anything, and the CC debt is all there is. |
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Softtaco |
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Posts: 3273 (11/09/08 9:38 AM) Registered user |
I'd say the odds are irrelevant since this person clearly has no grasp of math.
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pie123452001 |
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Posts: 32697 (11/09/08 9:41 AM) Registered user |
And Sweet Jesus, $1200 monthly fixed income?!!! With the prices today, how can this person survive? Now I see why there's so much CC debt.
That's a pretty good FICO score. |
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B DeBrun |
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Posts: 18568 (11/09/08 9:43 AM) |
The reality is, you aren't getting a 75K mortgage with 20K debt floating around. Pay it off first or add the 20K to your mortgage.
For your next trick, find a bank that is willing to lend to someone with a 714 FICO score and 20K in cc debt. |
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pie123452001 |
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Posts: 32698 (11/09/08 9:46 AM) Registered user |
What's the interest rates on these credit cards?
Don't break my heart with double digit answers. |
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Nonentitled |
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Posts: 700 (11/09/08 9:48 AM) Registered User |
Average intrest rate on the cards is 9.1%
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B DeBrun |
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Posts: 18570 (11/09/08 9:48 AM) |
That's the new one. Interest rates being reset upon revised FICO scores.
Even if you pay on time and are current, rates can still go up. |
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Creeping Ivy |
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Posts: 3378 (11/09/08 9:56 AM) Registered user |
Get that credit card debt paid down before even attempting to get a mortgage. It's more than your annual income. I'd say that even if your credit
score were in the 800's.
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ZippyDoDa |
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Posts: 8268 (11/09/08 10:04 AM) Such a naughty monkey |
Nonentitled wrote:$1200.00 = before or after taxes, before or after monthly bills paid any savings account = pension plan = 401k = I think that some one would qualify them, but you can be sure that it would not be a wise choice if there is no savings ac, pension plan, 401k plan and if $1200.00 is before taxes and before bills. |
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pie123452001 |
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Posts: 32700 (11/09/08 10:15 AM) Registered user |
And once you've paid off your credit cards, downsize to just ONE. Don't even think of charging anything on this card that you can't afford to pay
off in full each month.
Oy vey. |
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omzig |
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Posts: 5462 (11/09/08 10:18 AM) Registered user |
I'd say your chances were better a couple of months ago.
Now, not so much. |
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CBRetriever |
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Posts: 22670 (11/09/08 10:25 AM) MESS member |
really - and if you're just making the minimum payments on those cards, the balance will continue to go up since all you're paying is the interest
and if you're thinking of buying a $75,000 mortgage, you also have to consider the tax and insurance rates that will be rolled into your monthly payments |
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Strange Flute |
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Posts: 3980 (11/09/08 10:26 AM) Registered user |
Your Jesus laughs at your stupid debt. 
You will be replaced by a robot who can do everything better than you. 
Amen. |
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Sept |
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Posts: 711 (11/09/08 10:29 AM) |
I could be wrong (and you can always get pre-approved to find out), but I doubt that you'd get it. And honestly, I don't think it'd be
financially smart to try to get one with all that debt, either. Work on that first. Also try to bump your credit score up just a bit -- it's good, but
they're looking for excellent these days.
You also need to work to put down a reasonable downpayment, because otherwise your payments would be pretty high. |
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pie123452001 |
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Posts: 32701 (11/09/08 10:30 AM) Registered user |
Oh my. Sweet Jesus doesn't look so sweet there. I think I see a cavity in one of his wisdom teeth.
FLUTE, DO NOT SCARE NONENTITLED. SHE'S GOT ENOUGH PROBLEMS. |
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IFY0USEEKATE |
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Posts: 1193 (11/09/08 10:54 AM) Lost soul |
How much money have you set aside for the down payment and closing costs? A 20% down payment is $15,000 and closing costs will vary depending on whether you go
through a realtor or not.
Another thing you really need to consider is that a home for $75,000 is going to need updates, not to mention the regular maintenance. |
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MunchkinsByProxy |
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Posts: 1090 (11/09/08 11:08 AM) Registered User |
what sort of home is 75000? is it just a single-wide?
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Nonentitled |
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Posts: 701 (11/09/08 11:16 AM) Registered User |
DO NOT SCARE NONENTITLED. SHE'S GOT ENOUGH PROBLEMS.Thanks pie. Stress, it's the killer. The $1200 is before paying anything, there are no savings. BUT if I can get a land contract through the owner, he may let me get away with just a $3000 down payment since he really wants to sell. The house has 3 bedrooms, 1 bathroom, a full basement and nearly an acre of land. Plus it's in a nice neighborhood. Well worth the $75,000 in my opinion. |
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