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Alittle Guidnace on my 6 Month Plan

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l-turner
Established Member

Alittle Guidnace on my 6 Month Plan

Credit:  My credit is Mid 630's Credit Score, and my Wife's is Mid 650's.

We have about 6 Open accounts. All of them i Plan on paying all the way off, and 0 Balance or below 30% on those. The Only card that i probably wont be able to pay Below 30% on is a USAA CC that has 2900/300 Full of Credit.

I want that below 2000 by the 6 month Mark but i dont know if i'll be able to Pull to get it to 1000 By June. The Monthly Payments are 75$ a Month.

 

Income: Between me and my wife it is roughly 61,000 Annual Gross Income(Not exact will be alittle bit more)

 

SOI: Employment I make 32,??? and she makes 29,??? i dont know exactly at this point in time. We Both have been in the Cust. Serv. Business for more then 2 Years so we should be good in that respect.

 

Debt Payments: Theirs our Car Loans which equal 670 a Month. She's will start paying on 1 Student Loan for 150 a Month in March, the rest Should be deffered for 12 Months Post June. then 75 Dollars for the one USAA CC Bill.

 

Employment: Ive worked at my new Job for a Year, BUT i've been in the Cust. Serv Industry for atleast 4 Years. As so has my wife.

 

Assets/Reserves: This is where I'm most scratched. We have very little Reserves. In 6 months i want to build our account up so that we have atleats 3 Months of reserves to show the Loan Comapny. Other than that we probably can Muster 3-4,000 dollars. Thats the extent though TBH.

 

Location: Columbus, OH is the Location. We are going to try and utilize the Grants For Grads Program since my spouse just recently has gotten her associate degree. http://ohiohome.org/homebuyer/grantsforgrads.aspx, this is a Link to program specifics. 2.5% of Purchase price as a grant for Closing or down Payment, and a Intrest rate of 3.75%.

 

Property : It's either a single family Home or Condo. i don't particularly like the fact that condo's have HOA Fees and by the time i get done with it i might as well have purchased a House for that amount. Plus more equity and value in an actual stand alone home for future.

 

Value: I'm Looking Between 95,000 and 75,000 Price Range. 95 is pretty high but if the house is amazing and worth it im willing to make that stretch.

 

Primary residence and it's a Regular Purchase

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Okay with that info what is me and my wife's Chances with the little Downpayment?

 

I was thinking to Pay down all my CC balances to under 30% but i would still have the monthly payments at that point raising my DTI. Also do Medical Bills count into DTI? Thanks for anyone who can give me a glimpse on the plan. Once i pays ome of these CC's down i know my score will raise up and be in the 640 range by June

 

 

 

 

Message 1 of 7
6 REPLIES 6
IOBA
Senior Contributor

Re: Alittle Guidnace on my 6 Month Plan

Scout the internet, even USAA, and use the mortgage calculators and find out what you can afford to purchase with your current income and your current debt load.

 

Pay down the debt asap!   In your case, the cc and don't carry a balance.   Is there one car loan you can pay off before app'ing for a mortgage?

 

Different loan programs count/treat student loans differently.  Some include the payment, even if they are in deferment.  When you play with the calculators, add in the deferred payments and do it without those payments.   

 

The lender will want to see at least two months of reserves in the bank.  Three is better.   And usually closing costs and down payment.  I didn't look at the link, so I don't know what the program offers.

 

I agree, stay away from HOA's if you can.  Rates can go up, special assessments happen...and there's usually a few people who just dont' pay.   BUT if you can afford to, go for that now and then trade up later.

 

And dont' apply for ANY credit between now and then.

 

 

Message 2 of 7
l-turner
Established Member

Re: Alittle Guidnace on my 6 Month Plan

The Cars are set in Stone their Both Honda's and relatively new will be paid off in 5 years Though :-)

 

Okay sounds good im going to pay all them down then. ANy idea on the Medical Bills? Their not late im just paying on them wondering if they will be factores in DTI?

 

I mean if im not calculating wrong Our Outside Debt payments = 876 Then our Monthly Gross is 4800 Roughly. Isn't that a Decent DTI?

Message 3 of 7
IOBA
Senior Contributor

Re: Alittle Guidnace on my 6 Month Plan

Do the medical bills show up on the credit reports?

Message 4 of 7
IOBA
Senior Contributor

Re: Alittle Guidnace on my 6 Month Plan

If I calculated correctly, the CURRENT DTI is 18.25%.   Check with lenders to see what their ratio is.  It usually varies between 25-30-35% of your gross income.  The DTI with a mortgage would be included.

Message 5 of 7
l-turner
Established Member

Re: Alittle Guidnace on my 6 Month Plan

Oh no the Medical bills dont show up on the Credit reports it's Just recent Bills that im paying on Monthly. So im guessing no on that.

 

Yeah my monthly payment allowed seems to be 851 which is exactly what i wanted to have as far as amount and thats IF i get a 100,000 Plus home which im not trying to do.

 

So i see my main thing is getting everything Paid off and then Building up that checking account. Cool.

 

I love the advice anymore is much appreciated :-)

Message 6 of 7
IOBA
Senior Contributor

Re: Alittle Guidnace on my 6 Month Plan

When you apply for a loan, don't mention the medical bills if they are not showing up on the credit report.

 

If you are iffy on the DTI then definitely save up.   If the cars are so new, it's unlikely you can get one paid off before you get the mortgage...but hey, if you can, go for it!!

 

Other than that, pay on time, don't change cell phones, jobs, or app for any credit at all!   

 

And save, save, save!!!!!   Cash talks!   Especially if you are in the "iffy" category for anything.

Message 7 of 7
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