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mocte85

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Wife lost her job and become self-employed. Can I still get a mortgage?
I'm planning to apply for a mortgage for the first time next month, me and my wife made a total of $74k last year (2015). I made $58k myself, we have no debt. We have saved 25k for the mortgage. We want a 300k mortgage. My wife has an excellent credit score (750, 751 according to CK), my credit score is good (735, 737 according to CK). My wife got fired on December, she immediately become an Uber partner (self-employed) making 300 a week. How this change of jobs can affect my asking price mortgage? Can I still get 300k?

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A mortgage approval is based on your debt/income ratio (most lenders won't lend if your monthly payment is more than 25% of your gross monthly income). $58k of income is $4833/mo. gross.

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A $275k mortgage ($300k minus your $25k down payment) at 3.9% (the rough average these days) comes to roughly $1300 in payments - and that's not counting insurance/taxes, mind you. 25% of your stated monthly income is  $1208, so the answer is probably "no".  Note that I'm assuming that someone else is paying your closing costs, and not taking it out of your $25k nest egg.

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Your only real options are to 1) make a larger household income, or 2) start looking for houses that cost $275k or less (which would put you comfortably under the debt/income ratio threshold as long as interest rates don't go up too far). Also, you'll have to make sure you have no other debts when you do this (even for a $275k house), or things will get hella tight on your monthly budget.

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