Approved for a ridiculous loan

Apr 29 19 Comments

My other half and I are applying for a loan for our first house and we were approved for an insane amount based on our base salaries alone.

Does this seem unreal to y’all? Housing recession incoming?

For Seattle: Up to 2.1mm with 20% down. “More if you want to put more down”

We were asking for 900k thinking that is expensive but doable on our dual income.

Incomes: 240k and 200k

Base salaries are both ~165,000

115 PARTICIPANTS SELECT ONLY ONE ANSWER
VOTE VIEW RESULT

comments

Want to comment? LOG IN or SIGN UP
TOP 19 Comments
  • That debt to income ratio seems okay to me. It’s about standard, if not a tad bit high. 440k joint income is more than enough for a 2m mortgage. This is assuming you have no other large outstanding loans.

    Also a lot of lenders in Washington have special deals with Microsoft so I think your loan would get approved.

    And a 900k loan here will get you at most a condo. Most people here get approved for 1.5m+
    Apr 29 0
  • Klaviyo
    eek2610

    Go to company page Klaviyo

    eek2610
    This has always been the case. We actually didn’t share our preapproval amount with any of the agents we spoke to. We requested a preapproval letter only for what we were comfortable spending. It was well within what we qualified for.
    Apr 29 0
  • Not key bank, local lender. Why would we have trouble in underwriting? Tbh i dont know much about home loan. Anyone experienced with mortgages at this income could you weigh in on what you think is a healthy mortgage amount for our incomes? No kids no debt.
    Apr 29 3
    • That is helpful, ty! I was thinking we would try to find something under 900k but be pre approved for up to 1.2mm max
      Apr 29
    • Meta
      metacrash

      Go to company page Meta

      metacrash
      To be specific I’m basing it off of the base salaries of 165 each (330 total). Bonuses and RSUs are great but they’re generally not paid biweekly and are not something I recommend factoring in when purchasing. Interest rates are around 5% now (~6k in principal and interest) but then there’s also property taxes and insurance (both of which will increase over time even though your principal + interest payment will remain fixed). So all in you’d be somewhere between 7-9k per month depending on location for a 1.1M home. For a 2.1M home you’d be ~12k at least
      Apr 29
  • We have similar TC but no way we would take a high DTI loan. 2.1m is crazy to me. Your mortgage + tax per month will cripple how much you can save for retirement and other investments
    Apr 29 2
  • Google
    hbvhhbg

    Go to company page Google

    BIO
    mostly harmless
    hbvhhbg
    You would have trouble in underwriting strp
    Apr 29 0