Do I Qualify for a Mortgage? (Punch and Pie inside)

[sledge187]

Sorry guys but there is no punch and pie. I only said that to make you come in. That said, I was wondering how long before we would qualify for a mortage. We have not had a late in 5 months but prior to that we had plenty on our mortgage. 

1) Mortgage Credit Scores -

Wifey - 635 (Pulled from mortage broker today)

Me - 634

2) Credit Negatives -

Wifey -

a) Cap One - 30 Day lates 3 Times (7/14,5/14,2/14) 60 Days 1 Time (6/14)

b) Credit One - 30 Days 5 Times (1/15,7/14,2/14,10/13,12/12) 60 Days 1 Time (11/13)

c) Firt Nat - 30 Days 2 Times (8/13,12/12)

d) Walmart - 30 Days 2 Times (3/14,10/13)

e) Fingerhut - 30 Days 2 Times (4/14,1/14)

f) HSBC - 30 Days 1 Time (12/08)

g) Wells Mortgage - 30 Days 16 Times (most recent 6/14) 60 Days 24 Times (most recent 1/15) 90 Days 2 Times (most recent 5/14)

Public Record - as of 1/09 - $6834 - not paid, tried calling and emailing them years ago but never got a response. Only unpaid thing left on our credit. 

Me -

a)Cap One - 30 Days 1 Time (12/12)

b) Cap One - 30 Days 3 Times (3/14,12/13,10/13) 60 Days 2 Times (4/14, 1/13) 90 Days 1 Time (5/14) 120 Days 1 Time (6/14)

c) Home Depot - Charge off as of 7/08

d) First Premier - 1 30 Day (5/14)

e) HSBC Auto - 1 30 Day (12/08)

f) Merrick - 6 30 Days (4/14,12/13,10/13,8/13,3/13,11/12) 60 Days 2 Times (1/14,12/12)

g) Merrick - 4 30 Days (4/14,1/14,7/13,11/12)

h) Wal Mart - 1 30 Day (12/12)

I) Wal Mart - 1 30 Day (12/12)

Public Record - 09/10 - Paid

3) Gross Income - 

Wifey - $78K

Me - $110K

4) Source of Income -

Wifey - $78K salary

Me - $70K base $40K commish (Paid quarterly)

5) Monthly Debts Payments

We are joint on all our monthly debts. 

Installment Loan - $300

Car Note - $675

Mortgage 1 - $1700

Mortgage 2 -$400

All credit cards are paid off and have $0 balances

6) Employment

Wifey - Salaried 15 years

Me - Salaried plus commish 2 years

7) Assets 

Wifey - $30K - 401K

Me -$1K - 401K

Stock Account - $1K

Savings - $1K

8) Location -

Texas (populated area)

9) Property Description -

Single Family 2 story ($350K) Would put down $100K from the sales of our house. 

10) Property Value -

$350K

11) Occupancy - 

Primary Residence 4 people (all mortage applicants in the house)

12) Transaction Type

Purchase

Notes -

My wife and I have no credit card debt. All our cards are at $0. We have very little debt now becuase we paid off a ton of things earlier this year. We do not have a good excuse as to why we fell behind. We just suck with money! The mortage broker we spoke to said our mortgage is in a dispute status. It is the only account in this status. He said when we remove that statement from the account that our scores will drop drastically because basically 42 total lates will now effect our scores. Should I do as he is requesting now or wait? We have no bancruptcies or forclosures ever. 

My main question is, how long should we wait until we apply for a mortgage? So far we are only 5 months with no lates. 

[StartingOver10]

Since your most recent mortgage late is January 2015, you need to wait until January 2016 so you have 12 months without any mortgage lates.

Believe it or not - the fact that all of your cc balances are zero works against you. Charge a small balance on one cc, 1% to 9% of the individual credit line, and you should see your score increase. Do this only if the credit one card is not showing a balance when it reports. Most of the time it does since Credit One charges an annual fee split up into 12 monthly installments and if your card is reporting a small balance, then you don't need to add to it with a small balance on another card. 

Yes, your score will probably drop when you remove the 'dispute' notation on your CR. You have to remove the dispute in order to get a new mortgage so you might want to do that sooner than later so when you apply you are not scrambling to remove the dispute during the mortgage process.

During the balance of this year, spend some time on the rebuilding forum to see if they can give you suggestions to boost your score. For example, you might try to 'Good will" the late payments with each individual creditor. That will help you.

Having said the above, a $100k down payment on a $350k purchase will make getting a mortgage easier for you. I would not go to Wells for your next mortgage. Go to a correspondent lender that actually orginates, underwrites and funds their own mortgages (then sells them).

*last comment:  you can get your own mortgage scores right here without having a HP (its a SP)  http://www.myfico.com/Products/FICO-Score-3-Report-View/

Better to pull your own then to get the broker to pull your score - its a hard pull every time a lender pulls your score.

[sledge187]

Thanks StartingOver10!

[StartingOver10]

By the way, your headline worked! I came in to have some pie and punch

[Revelate]

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@StartingOver10 wrote:

By the way, your headline worked! I came in to have some pie and punch

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Well if you ever make it out to S. Cali I will do you several better than that if you desire!  Or if I do wind up going to Palm Beach for the AYSO National Games tournament next year, beers (or your particular weapon of choice) are on me!

[StartingOver10]

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@Revelate wrote:

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@StartingOver10 wrote:

By the way, your headline worked! I came in to have some pie and punch

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Well if you ever make it out to S. Cali I will do you several better than that if you desire!  Or if I do wind up going to Palm Beach for the AYSO National Games tournament next year, beers (or your particular weapon of choice) are on me!

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That sounds fun....don't be surprised if i take you up on your offer!....

[Anonymous]

Sledge, I just want to acknowledge the South Park reference !

[sledge187]

LOL! I knew somebody would get my South Park reference.