Real Estate Home Mortgages/SS and Mortgages

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Question
Hi
My husband and I are interested in purchasing a home w/acreage or farmette in WI.  We live in Chicago; need to sell our condo unit, first (had an offer on it last year but cancelled due to illness).

We have excellent credit/scores, and are just retired. So the income the bank would consider for a loan would be from Social Security ($33,000 tax-free) and other cash assets.

Here are our questions..  1) Would we qualify in terms of straight SS income; 2) Would it be better to work with a bank in WI instead of a bank having a presence in the state from IL (as with our current bank here).  3) We want to split the funds we have in the bank (keeping SS funds separate) and moving a third of the money we have to a CD at another bank - our bank doesn't pay any appreciable interest on anything.  Would this have a negative effect re a mortgage in general.  Thank you for any and all help on this. :)

Answer
1) Would we qualify in terms of straight SS income; (SS income is fine and they would usually use 115% for qualifying. So multiply gross income by 115% and this will be your yearly income then divide by 12 to give your your total gross monthly income which they must use);

2) Would it be better to work with a bank in WI instead of a bank having a presence in the state from IL (as with our current bank here)(Either way.. what ever you feel comfortable with);

3) We want to split the funds we have in the bank (keeping SS funds separate) and moving a third of the money we have to a CD at another bank - our bank doesn't pay any appreciable interest on anything.  Would this have a negative effect re a mortgage in general. (No, not at all#

 Thank you for any and all help on this. :#

Hope this helps! #$33,000 x 115% = $37950/12 = $3162 x 31% #this is usually the most any lender will allow for your current housing expenses# = $980  Max monthly mortgage payment. #assuming your don't have over $300 in auto, credit card, personal loan debt. There might be a little wiggle room.

Hope this helps!

:) Good luck!
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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

Real Estate Home Mortgages

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Ron Giannamore

Expertise

Underwriting Processing, loan modifications, down payment, government loans, fannie mae, freddie mac, VA, USDA, real estate questions, closing cost questions, etc. 25 years experience

Experience

Over 25 years lending experience and support. Currently work with two Non-Profit organizations and sit on the board of a government funded HUD agency. Vast knowledge of lending, credit, credit support and education, and helping borrowers take the necessary actions in obtaining mortgage approval.

Education/Credentials
Non Profit Housing Counseling Agency Board memeber 4 plus years. HUD funded. Licensed Loan originator in multiple states; 25 plus years experience

Awards and Honors
Top Loan Originator Corporate Award;

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Over 6000 clients served over 25 year plus period

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