Approval?

[Anonymous]

Hi-

 I am wondering if anyone has an idea if my husband and I will qualify for a house loan and for what amount.

Here are the details-

ME-

EX- 639 EQ- 643 TR-659

I filed BK CH 13- Sept 02-which has been discharged and is set to come of my credit report Sept. 09 ( it says on on the credit reports that it will fall off then)

HUS-

EX 663 EQ-654 TR-678

Total debt- cc-$4,500.00- will be paid of by July

 Car loan - $14,000

Total cash in bank ( by end of July)- $56,000 ( this isnt including the amount we'll make on the sale of our house should be about 25,000, but we don't want to use that on the new house, if possible)

Income

Me- 68,000/year

Husband-67,000/year

We are going to put our current place up for sale in Jun/July time frame, but I want to wait to get new house till my BK falls of credit report. I know my score may, or may not go up. I just hate the fact it is even on my credit report and want it to be done before we go for a new loan.

So I am wondering if and when will we qualify? This will be my husbands first loan, since I bought the house prior to our marriage. What amount do you think we'd qualify for?

 In the meantime, I am working on raising our credit scores. By paying bills off and on time- also I am trying to dispute a coulple medical collections on my account through the HIPPA process- hopefully it'll work sooner than later- :-)

Thanks for your help!

[ShanetheMortgageMan]

What is the sales price range you are looking in and what is the payment on the $14k auto loan?   Everything else looks good so far...  BK falling off shouldn't affect financing options either, so that would just be a personal goal of yours, not anything required for a mortgage.

[Anonymous]

car payment is $470.00

As for price range we're looking for, we're hoping 350,000-425,000- I know we can handle the payment( we've been saving twice the payment amount just to make sure we'll be able to handle it and the extra expenses)- but with credit scores not ideal, not sure if we'd be approved for the price range.

Glad to know the BK isn't s problem for a loan....I still can't wait till its removed!

Thanks so much for your help!

[ShanetheMortgageMan]

That price range being a problem to qualify for either - even if you are buying in an area with a super high property tax rate too (ie Texas, New York, etc.) your debt ratio would be fine.  With your scores FHA loans are going to be offering you better interest rates at this point, as soon as it hits a 660 mid score for both you and your husband then conventional mortgage's interest rates would start getting competitive with FHA's.  FHA does have mortgage loan limits that vary by county though, so to make sure that is an option for you, you should check out your county's limit at https://entp.hud.gov/idapp/html/hicostlook.cfm