Do We Qualify?

[My1stgahome]

Good day, my wife and I are about to embark (hopefully) on the mortgage process and we wanted to know if we had a chance.

Me - income - $40, 000 per year, credit scores, 612, 630, 645, I have 5 unpaid CO accounts totally $2500 from 2010 and I have 2 closed credit accounts in good standing and 2 authorized user accounts with my wife. I alsopay $300 per month in child support.

My Wife - income - $50,000 per yer, credit scores, 651, 680, 675. She has a BK7 from 2005 otherwise she has re-established good credit. She has a car note for $500 and her total credit card payments are $300 per month.

We are looking at buying a home in Georgia for no more than $160,000.

Would we qualify? And should we go to a broker or a bank?

Thanks in advance for all who respond

[primeonetx]

Good morning.  You should qualify fine if you can prove you pay your rent on time and the two closed accounts you have are both recent.  The only way to know for sure is to pre-approve/pre-qualify the two of you.  The difference between entities is to think of mortgage brokers, mortgage bankers and banks as three different systems to accumulate the mortgage funds.  Mortgage brokers are middle men who arrange but do not fund the loan.  They use the mortgage banks and banks to fund the loans.  They have no control over the process so you never know what you'll get.  The banks use depositors' funds then sell the mortgages into the secondary market (Fannie, Freddie and Ginnie securities) and usually set their own guidelines, so they only approve loans that they want to approve.  They also have to support brick and mortar bank branches.  Mortgage bankers use their own funds and funds borrowed through lines of credit then sell the mortgages either to servicers or directly into the secondary market like banks.  The differences are that mortgage bankers generally have many outlets to which they sell the closed loans so that they can pick the best pricing and the easiest guidelines, giving them multiple options to the banks' singular option.  And mortgage bankers have only one line of business in most cases, so they have lower overhead and deliver more consistently, on time and with fewer hassles.  Because mortgage bankers control the process from start to funding, they can make sure that there are fewer hassles and when done like we do, no delays.  Some middle market banks perform well.  The big banks have a terrible reputation for having inexperienced originators, slow staff, inefficient operations, closing late, and generally underwhelming people, all without even offering a better rate or lower costs.  Most realtors today will not recommend a bank; they'll recommend a mortgage banker or mortgage broker, and the latter only if they have long-term experience with the broker.&nbsp. .

[aussiesareforever]

primeonetx wrote:

Good morning.  You should qualify fine if you can prove you pay your rent on time and the two closed accounts you have are both recent.  The only way to know for sure is to pre-approve/pre-qualify the two of you.  The difference between entities is to think of mortgage brokers, mortgage bankers and banks as three different systems to accumulate the mortgage funds.  Mortgage brokers are middle men who arrange but do not fund the loan.  They use the mortgage banks and banks to fund the loans.  They have no control over the process so you never know what you'll get.  The banks use depositors' funds then sell the mortgages into the secondary market (Fannie, Freddie and Ginnie securities) and usually set their own guidelines, so they only approve loans that they want to approve.  They also have to support brick and mortar bank branches.  Mortgage bankers use their own funds and funds borrowed through lines of credit then sell the mortgages either to servicers or directly into the secondary market like banks.  The differences are that mortgage bankers generally have many outlets to which they sell the closed loans so that they can pick the best pricing and the easiest guidelines, giving them multiple options to the banks' singular option.  And mortgage bankers have only one line of business in most cases, so they have lower overhead and deliver more consistently, on time and with fewer hassles.  Because mortgage bankers control the process from start to funding, they can make sure that there are fewer hassles and when done like we do, no delays.  Some middle market banks perform well.  The big banks have a terrible reputation for having inexperienced originators, slow staff, inefficient operations, closing late, and generally underwhelming people, all without even offering a better rate or lower costs.  Most realtors today will not recommend a bank; they'll recommend a mortgage banker or mortgage broker, and the latter only if they have long-term experience with the broker.&nbsp.

Welcome to the forums. You are not allowed to solicit or advertise your business on here btw.

[primeonetx]

Sorry for the faux pas.  Won't happen again.