Should I try applying for a home loan now, or wait?
My husband and I are in need of a bigger house. The sooner we can get it, the better. We refinanced our mortgage on our current home almost 2 years ago, but that was before our 4th child was born. The house is in both of our names, but originally it was just in my husband’s name until we refinanced. Our credit was bad, but has improved. 5 months ago, mine was 620, and my husbands was just below 600. We haven’t had any late payments since the refinance and my husband and I both have a decent income. We live in central IL and the cost for a house that would be big enough for us would be between $ 75,000 and $ 180,000, depending on the condition of the house. Together, my husband and I make about $ 42,000 a year. Our current home will be worth about $ 85,000 to $ 90,000 when we are finished remodeling. Could I apply for a home loan within the next few months or would it be wise to wait another year to 18 months before applying?
I forgot to add that the income amount that I listed is what we bring home after taxes and such are taken out.
We would have to sell the house we are in. we only owe about $ 52,000 on it. We don’t want to put in on the market until we know that we would be able to buy another house. We are in a great location but we have outgrown our house. We are right across the street from the elementary school in our town.