Do I qualify for Anything

[DoItDiva]

I am curiously to know whether I would qualify for any type of mortgage with my present financial situation.  My salary is $111,000 annually, I have about $37,000 in CC Debt with utilization at about 80% and I also have one car loan payment.  My mid-score is 631 and I have no lates in over 6years.  I have one new collection which I am disputing on my Experian report it does not post to the other credit bureaus.  I currently pay $1325.00 for rent on my present apartment. Does anyone think I have a chance to get qualified?  If not, what should I do to get qualified, I would like to buy by next year. 

[SonorityGenius]

If the mid score of 631 is a FICO score and you're sure, thats good.

80% util on CCs is very bad; you need to bring it down below 50% and get score boost too.

What is the total min payments reported by CCs on reports? 37k is a hefty figure of debt and increases denial.

What is the total monthly payment for the car loan? We need these numbers to calculate DTI ratios.

[DoItDiva]

My monthly CC payments amounts to about $800 monthly and my car loan is $415. 

[Anonymous]

you need to pay that cc down prior to buying for numerous reasons.

It will make it alot easier to get approval and to be able to afford the house you want

It will raise your score alot.  That is why with 6 years clean credit you are running low 600 FICO scores...

The underwriter will be concerned about that much unsecured debt and the pending habits that led to it on 111K income (unless you have a reasonable explanation)

Although 630 will likley get you an approval today, many lenders are now requiring 640 and may be going up to 660 for minimum FICO for FHA and I would guess that most conventional are at or above 700 now without large down payment.

How much are you looking to spend on a house?

How much down payment do you have?

How much reserves do you have?

[DoItDiva]

I want to spend no more than $250,000, I have about $10,000 for a down and no reserves

[SonorityGenius]

3.5% of a 250k home  = 8750

No reserves at all = BIG red flag

37k CC debt with 800 monthly payment AND a 425 car note. .you are better off waiting, with your salary I can't see how you do not reduce that debt in half in 3-5 months...i.e. before december

[DoItDiva]

Thanks for your comments and advice

[ShanetheMortgageMan]

Do you qualify at this point?  Most likely yes.  However like the other posters pointed out, would you feel more comfortable if you were buying and had some money saved up in addition to the down payment?

[DoItDiva]

I totally hear you Shane.  I am going to work on bringing down the debt and starting a reserve.  Thanks for the advice