Building credit profile when is a good time to apply ?

[Anonymous]

Hi all first time poster wanting to share my dreams with my high school sweetheart wifey . I have been saving up $500 a week into my wife's account . I wanted to check with the LO and see if it is possiable for me to get a loan with little cash reserves . I have been @ my current job 1 year 8 months, last year I made 54k gross with 1.2k 401k contributions , I read I need minimum 2 years. (Primary worker )I payed off all my debt 6/15 . I started a $500 secured capital card( $801 current limit)then a $500 Bank of america Secured card ( $900 limit current )( wife's Capital one 3k limit ). . I have paid all the debt/collections 1 paid collections still showing up but it does not show it is affecting my score(marked As paid) .My recent BofA credit card linked with fico Score reporting as 743(2/14/17), capital credit card credit wise reporting that my oldest card was 6 years old , had a time when I was 16 and I was an authorized user for a credit card then the primary account holder stoped making the payments for the card . I called Bank of America back in 2010 to get this off my credit profile as I was not the primary and was under 18 when they went into default on the payments . Anyways wanted to be as truthful as possiable, so I have all my facts out there . I'm @ 1 year and 4 months in my oldest credit card , my account credit history shows 6 years .I want to continue building a healthy credit profile. I have a stable job . My amazing wife and I have decided that instead of taking vacations to make the choice to save for "are" future . I pay in full every month before the closing date both of my credit cards & her capital one card . The economic recovery process here is slow but steady and we have 2 vehicles (100% paid) which I have decided to sell my second car and place the funds into are savings to successful complete the 1 car 2 people .I have 0 loans out and fluctuate 8%-0% credit utilization on a month to month basis. If there are any tips and tricks I need to know about building and getting approved for a loan , ex is it ok after 2 years with my job to start looking for a mortgage ? Or should I wait until all my credit cards inqueries that will be on there for another 8 months fall of ? This has changed my outlook on life financials. I want more than anything to purchase my first home with my wife & puppy .

[kc0039]

You can apply now and go from there. We need a two year history. We don't need two years on the job unless in certain situations. Loan officer will ask about the credit inquiries and as long as there is no new credit  or a sign showing that you're heavily applying for credit and keep getting denied, it SHOULD be okay.

[Anonymous]

Nice good to know , thanks for the reply . Is there a certain loan I should apply for that would be best for my situation ?

[kc0039]

That is a loaded question. Please apply through a local lender or broker and they would be able to answer your question. That question is  dependent on down payment, credit score, and debt to income.

[Anonymous]

ok thanks for being honest. I was looking at the mast variety of loans I'm not going to hold you to it but which have a lower down payment and is it a bad thing if I finance my closing costs into the loan any special lender I would look for ? I hve heard from a work friend he financed the closing costs ( but it raised his interest 1% is this true ?)

[kc0039]

Conventional with 3% down and FHA has 3.5% down. Conventional will only take you to 45% debt to income ratio and FHA will take you to 56.99% debt to income ratio, if the lender has no overlays. What your friend meant is a lender credit. No need for special lenders, all lenders will do it. Lender gives out a credit (dependent on loan amount) by raising the interest rate. You can always ask the sellers as well to pay for some closing costs in the form of seller credit and ask the lender to raise the interest by 0.25% - 0.5% to cover the rest of the closing costs while you just pay for the downpayment.

[Anonymous]

Awesome Kc thanks . It is becoming clear what I must do .