800 K house for my income?

Question

Hi!Can I afford $780,000 house in my situation?1) 20% down payment 2)my credit score - 800, wife's credit score - 750. Title will be on both of us, morgage only on me.3) 31 years old4) a stable job at a large corporation that I started 6 months ago: $159k base salary+10% bonus+$15k special bonus+$16k in stock for next 4 years (vested annually); good health insurance5) $10k car loan6) no other debt7) pregnant wife (1 child coming soon)8) wife is a university student and still has 2 more years; $16k in annual tuition. It is very plausible she will get at least $60k job after graduationThanks!

Guifre Mora · Answer

Good for you congratulations, lots of information that is irrelevant here but... potentially can afford a home little over 800K, now the questions will you qualify for a loan ... hypothetically your wife might not go back to work.

20% down great, reserves for closing costs, appraisals, moving costs, new furniture, and any fixes needed the wife would like -(pink or blue nursery)?

Annual Income $159,000. This would be 2020 income.

Annual Income in 2019?

Annual Income in 2018?

To be approved, you need the income that is reliable, stable and likely to continue for at least three years. Standard mortgage applications need a two-year work history listed. If you've been at your job or within the industry that long, no further questions are needed. If you've got less time at your position than two years, your history comes into play.10% bonus ... paid when? end of year monthly quarterly, how much of this bonus have you received this year?

15K special bonus ... paid when? end of year monthly quarterly, how much of this bonus have you received this year?

Monthly expenses:

• Monthly credit card payments (you can use the minimum payment when calculating your DTI ratio)
• Monthly car payment how much? ...
• Monthly student loan payments (If this is your wife make sure it's not in your FICO report)
• Monthly personal loan payments
• Monthly debt consolidation loan payments

Make sure your credit report is clean and no old accounts appear as active. Do not remove them before talking to your Mortgage broker, by removing any info you might lower your FICO. Congrats and good luck