How quickly can we buy a house after income increase?
We were going to start house hunting in January before all this happened, but now we can afford a MUCH nicer house. Our income recently doubled after I got a raise and my husband got a new job 🙂 28% of our income is a 300k house payment. We’re planning to stick around 200k-250k tops. Right now our house payment is very low, and we have a lot of equity in our house (60kish).
With the new income we’re planning to pay off quite a bit. All debt should be gone by summer, but we do still have some cc debt. Right now the debt looks bad on paper. We’re still going to house hunt because we likely won’t find anything by then anyway, but we both feel like we need to start looking. We have to move by next year though, before our daughter starts school.
We could afford our current payment plus another house payment at the same time, so we will likely buy first. How likely is a bank to give us loan this quickly after a salary increase? Mine was just a raise but DH’s was a new job but in his same field. Will they require a full year’s W2 for the new salary or will it not matter since it’s the same field? We’ve never been late on a payment and credit score is in the 730s. Or will they just look at paystubs? Last year’s taxes weren’t great because we deducted a lot due to a sick kid. We will be doing the same this year.
Our current house is a flipper. We will have more than 20% to put down from our equity. We need to sell it because we don’t want our kids to go to school in this school district and the house is no longer functional for our needs. We need to be in a 1 story rather than a 2. We will be in the same town, just different school district.
We’ve had income for the past 2 years, it just increased.