Is it possible for a single person to qualify for a mortgage?
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I mean, I am not married so only have one single income. I also owe some debts like studnet loan, auto loan, and credit card debts. I live in Southern California where the house prices are pretty high. What do I do to better my chance for qualifying a mortgage. I do have good credit score.
Thanks!
**No advertiser or mortage officer post for business please, but just your knowledge of how to be qualify. Thanks!
Is it possible for a single person to qualify for a mortgage?Sure you can. It's all based on making enough money to support the mortgage after you pay monthly payments on all your other debts. Order your credit report and list all the minimum payments on your debt per month.
You can get a free credit report at
www.annualcreditreport.com
Divide that by your monthly gross income and you'll get a percentage known as your debt to income ratio. Most lenders will want your ratio to be about a third (36%) including your new mortgage payment. We don't know what that's going to be yet, so let's just work with what we have on the credit report right now.
If this number is about 10% (obviously not including your new mortgage expense) then you should qualify for the best rates and terms.
If it's too high then concentrate on paying off as much debt and reducing your monthly outgo as much as possible.
If it's low, congratulations. You can qualify for a more expensive house. Keep in mind you don't have to spend all the money you qualify for on a mortgage, use the extra to put into savings accounts for maintenance or retirement savings.
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