cancel
Showing results for 
Search instead for 
Did you mean: 

Apply in October

tag
mamahearts
Frequent Contributor

Apply in October

I checked my credit card utilization and one card was at 73% the other at 48%.    I can bring the first one down to 8.5% in 2 weeks.  Based on these #s, will my utilization be low enough for me to apply for my home loan preapproval in October? Thanks! 

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
myFICO EQ 652 9/26
Message 1 of 8
7 REPLIES 7
BrianB_The_Loan_Professor
Valued Contributor

Re: Apply in October

A lot of people feel that utilization factors in heavily when applying - It Doesn't at all

now if your scores need a boost this is a good way to get that boost

The lenders only care about how the minimum monthly payment compares to the gross monthly income

this is how your debt ratios are calculated - if the payment doesnt change paying down will have little impact on  your loan.

B

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 2 of 8
mamahearts
Frequent Contributor

Re: Apply in October

That's exactly what I needed to know.  It won't change the min pyt at all because I have such low credit lines ($500 and $900).  Since we're going to be turning in our bank statements, I'd rather have the funds there than on a credit card that I don't often use.  Thanks for your information.  We keep hearing about 9% utilization and thinking that if our util is higher than that we won't get the loan.  I used the myFICO simulator and the boost (which I'm not really relying on) would be about the same whether I pay $200 or $400.  Thanks!


@BrianB_The_Loan_Professor wrote:

A lot of people feel that utilization factors in heavily when applying - It Doesn't at all

now if your scores need a boost this is a good way to get that boost

The lenders only care about how the minimum monthly payment compares to the gross monthly income

this is how your debt ratios are calculated - if the payment doesnt change paying down will have little impact on  your loan.

B


 

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
myFICO EQ 652 9/26
Message 3 of 8
mamahearts
Frequent Contributor

UPDATE Re: Apply in October

I have another question as I'm going to be applying in about a week.  Smiley Happy  Kind of exciting but really, really scary.  When we apply, do I need to get a statement from my apt manager for any reason?  We haven't told her yet that we're looking to buy.  Also wondering if I'm missing anything else upfront that we'd need to pay as we're setting aside some funds for earnest money and inspections.  Thanks!!!!

 

The loan officer said everything looks good, so far so good.  But I don't want to mess anything up being this close.  I should qualify with my scores, clean credit report (2 negatives -1 satisfied judgement about 6 years old, 1 paid collection about 6.5 years old), low DTI, employment record, we're going to do VOD instead of bank statements and I think that's all.  I'm doing the first time home buyer's education session for down payment assistance on Friday.  They wanted my W2s for the last 2 years, 1 month of paystubs, my credit report and scores and info on the house that we're interested in (value, estimated closing costs, property taxes and age).  

Thanks again!

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
myFICO EQ 652 9/26
Message 4 of 8
Anonymous
Not applicable

Re: UPDATE Re: Apply in October

Your lender will know whether or not they will need to contact your landlord. We provided a copy of our lease to show that it was ending soon, and thus, would not have a rent obligation hanging over our heads. I told our LO that we didn't want the lender to check our rental history with our landlord until we were fairly certain the deal was going through, because we still had time to renew our lease. Ultimately, our lender didn't contact our landlord at all. However, we were in a really good situation financially with respect to our loan, and our LO ended up saying that they didn't feel our rental history was necessary.

Message 5 of 8
mamahearts
Frequent Contributor

Re: UPDATE Re: Apply in October

Thanks for your information!  I don't believe we'll need anything as we have been there three years with 2 of those month to month.  I'm just trying to be as prepared as possible. Thanks!

myFICO starting TU 683 8/26/11
myFICO starting EQ 645 8/26/11
myFICO EQ 652 9/26
Message 6 of 8
Booner72
Senior Contributor

Re: UPDATE Re: Apply in October

At first we thought we would have to have my LO mail my landlord a rent verification letter to fill out. But automated underwriting did not require it bc we had lived there for 2 years and our credit reports didn't have anything rent-related on it (judgments etc), and neither did the human underwriter.  So we gave our 30 day notice the week we were scheduled to close.  I didn't want to do it any earlier in case the deal feel through.  Looking back I wished I'd have told him earlier bc it sucked to have to deal with two houses for a month.  Good Luck!

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 7 of 8
Anonymous
Not applicable

Re: UPDATE Re: Apply in October


So we gave our 30 day notice the week we were scheduled to close.  I didn't want to do it any earlier in case the deal feel through.  Looking back I wished I'd have told him earlier bc it sucked to have to deal with two houses for a month.  Good Luck!


But at least you didn't have the stress hanging over you of whether or not you'd have a place to live. We haven't closed yet, and have to be out of our place in 2.5 weeks.

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.