If I make a yearly income of $300,000 and want to buy a $1.7 million dollar penthouse what would I… by Randall Burns
Answer by Randall Burns:
You have the income you need. Do you have $2–400K in down payment? What is your credit score like(I think a bank will want at least 700 for that kind of purchase)? How long have you been earning $300K? I think a bank may want to see 3 years at that level. Once you have those in place you can make that kind of purchase. I have by doubts about whether getting extended that way is a good idea or if this is the right time to buy, but you can make that purchase with those in place. You can talk to a local mortgage broker. They may have some fine points I would miss. One trick: if you have parents that live out of state, you can buy their home and rent it back to them and declare it as a second home, then in 2–3 years. That is an asset you can borrow against, maintaining that kind of asset/debt may help your credit rating. In general mortgages will help your credit rating and consumer credit will not, but having established credit cards that have low, zero balance but have been used will help.