My husband and I are hoping to buy our first home this year. We've been working on boosting our credit and have been doing a pretty good job (in my opinion). We haven't been to a mortgage lender yet, because I'm just worried about the hard pull and being told we're way out of range. I only have 1B monitoring with myFico, and I just get a casual idea of my husband's credit through CreditKarma and Credit Sesame
Here's some of our basics:
Negatives/Debts:
Me (720): 4 Credit Cards for a total utilization of 60%; 1 paid collection(I disputed with the credit card company as I never received the original bill - mailed to a wrong address- but it still reflects 'paid as agreed'; 1 30+ late on Cap1 in 2012 (tried for Goodwill letter and got another 'paid as agreed')
Him (695): 1 Secured Credit Card, and added onto two of my accounts for total utilization of 50%; three open collections in the amount of $68 (insurance bill), $120 (gym membership); $1100 (old phone bill)
Positives/Assets:
Me: $2000 401K, paid off a $9700 car loan in 2015
Him: $19,000 401K (however this is employer match only)
Combined Savings: $10,000
Combined Gross Income: $58,000 annually
DTI: 27%/34%
Our goal is to be approved for FHA loan and hoping to purchase about $180,000 house. Am I overanalyzing and thinking we're out of luck? The collections accounts and high credit utilization worry me, but we have good payment history otherwise and pretty good credit length (avg. account age is 8 years).
Any recommendations/advice is welcome!
