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Posts: 758
Registered: ‎04-26-2012
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DoI qualify for a mortgage?

Do I qualify for a mortgage loan? 

I have a fixed income of $1765.00 a month.  (do not pay taxes) i was told by a broker that they can figure in a higher gross because I don't pay taxes, not  sure if this is heresay. I am disabled.  

Listed accounts: 

Auto loanSmiley Tongueerfect,  all on-time payments, car will be paid off February, Febraury 01,2013 will be the LAST payment.  My concern is that the account will close, will this make my score plummet? Should I get the mortgage loan before Feb/2013? 

Cap1 $500 CL, opened December 2011, current balance: $0 (PIF every month) 

Cap1 $300 CL, opened January 2012, current balance:$0 (PIF every month)

First Premier $300 CL: opened March 2012, current Balance:$273, will be paid off tomorrow, cycles 9th so will boost score. 

Merrick: $700 CL opened October 2012, current balance: $0 (PIF every month)

Victorias Secret $350 CL, opened April 2012, current Balance, $90 but paid, cycles 14th. 

 

AU on wells Fargo appx $3000 balance 

AU on Bank of Amex appx $3000 balance 

 

I have 7 hard inquiry's plus 5 from 2011 that are not reflected in my score but remain on my report. 

 

 

CREDIT SCORES:

 

Experian: 704 (pulled from Experian.com)

Equifax: 703 (pulled from Myfico.com) 

Transunion: 654 (pulled from Credit Karma.com, and TransUnion by mail) 

 

Negatives/Baddies

 

Grant and Weber: $234 will be removed tomorrow when first business day of month cycles, (assuming) paid off (PFD) 

Unique NatIona's Collection:$253: not paid becAuse will actually fall off December 2012 

 

These are not showing up in credit score, I am assuming because they are so old 

 

I had a charge off, paid,  hit my TransUnion this month but received a Dispute notice by mail that it was "Deleted" but it is not reflected in my TU score as of yet.

 

I started at 554, 27 negatives, 3 judgemnts, I have worked very hard this year to remove these and have worked at getting my scores up..(myfico.com) 

 

I was told by broker that I qualify for 5% down thru a grant thru city. 

 

I do not have any debt as of Feb 2013  but I do not have much cash in reserves, ($1300) all my cash has  gone towards paying off debt..( how much will I need for inspection, insurance, appraisal..and can I put closing costs at the end of the loan?) 

 

Before I start the Pre-qualification process and pull my reports and land yet another hard inquiry, I was hoping I may catch a broker or some one here that specializes in Mortages and give me any advise that may help. 

Thanks 

 

 

CS 728- 01/13 from 554-12/11
Goal: 800
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Posts: 32,869
Registered: ‎08-04-2007
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Re: DoI qualify for a mortgage?

Disability income can be taxable in some instances. Just make sure you have tax returns squared away.

 

I paid off my one and only installment (also a car). EQ increased and TU decreased, both by single digits. I wouldn't worry. IMO, it doesn't matter when you apply.

 

The AUs may or may not be hurting util, and may help or hurt your AAoA. You'll have to do some math on that.

 

Ignore the inquiries.

 

Ignore your TU and EX scores. 

 

If the CO hit your TU, then it isn't too old to report. Since it fell off, I'd PIF ASAP. That might stop them from re-reporting via the CA or whomever holds the debt now. Also if deleted, it already is factored out of your FICO. FAKOs can be screwy sometimes.

 

When we bought our home, we had to pay about $3-$4k out of pocket during the process for the home inspection, insurances, utilities setup and deposits, moving costs (did 90% of it myself), gas $$$ during the home search, etc. This excluded the major costs like repairs, new furniture, unforeseen expenses, etc. You definitely want a good chunk in savings. Our lender also asked for $25k down (5%) and asked that we have a one-for-one match for reserves, which meant another $25k in savings. YMMV on your lender, but they do want you to have a few months worth of savings just in case.

 

Be sure to opt out from the CRAs prior to applying.

 

Play with some of the calculators out there. You can get a general idea of how much home you can afford. I think you would be right around $100k tops, and that's with $0 balances on all credit accounts (the car won't count since it's being paid off).

 

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Established Contributor
Posts: 758
Registered: ‎04-26-2012
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Re: DoI qualify for a mortgage?

Wow! Thanks for all the information!
I forgot to add that I have a CD that has about $900, I can pull this out for only a $35 penalty charge.
I can have $4000 by February but I can not prove where the money comes from..
I keep cash in my safety deposit box.. Is this going to be an issue?
Another option is to give $$ to BF and have him transfer it to my account. But how far back do they need to go to see it in my savings?
Additionally, my savings account is an UTMA account which means it has been transferred into my daughters name but I have FULL access to it.
Do I need to open a new savings account in my name only?
I know I have more questions.. Is it a problem if I ask while I think if them ?
Thanks again, you guys are awesome!
CS 728- 01/13 from 554-12/11
Goal: 800
Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
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Re: DoI qualify for a mortgage?

The $4000 can be used as long as the funds are "seasoned" funds.

 

The first requirement for cash-to-close is that the funds be “seasoned” for at least 60 days.  In other words, the lender wants to make sure you aren’t obtaining cash from somewhere on a short-term basis simply to meet the cash-to-close requirements of the loan.  To verify that you have “seasoned” funds, you’ll be asked to provide bank statements covering the last 60 days for all accounts you intend to use for your cash-to-close.

 

If you’re pulling cash out of an account that has some restrictions on withdrawals (such as 401ks, IRAs, etc.), you may be asked to provide the terms of withdrawal in writing as well.  Since you are wanting to use cash that is in a safe, you need to deposit that cash and let it "season" before you can use those funds to close with.

 

One of the headaches that arises from bank statements is that the underwriter will likely require you to “source” any unidentified large deposits. Underwriters are concerned about such deposits because they want to make sure you aren’t pulling cash out of an unknown debt account that isn’t included in your debt-to-income ratio. Be prepared to provide cancelled checks or bank statements sourcing the deposits. If the deposits are transfers from another bank account, be prepared to provide the last two months of statements for that account and source any unidentified large deposits on those statements as well.

 

Unexpected things often come up in the loan process, including low appraisals, property taxes coming due, etc., so it’s not always possible to anticipate cash-to-close issues ahead of time. However, if you’re going to be purchasing a home or refinancing and paying down the loan balance as part of the transaction, a little planning ahead can make the sourcing and seasoning part of your transaction much easier.

 

If you’re going to be coming in with cash at closing, I highly recommend pulling together the bank statements and sourcing documentation ahead of time so you’re not scrambling at the last minute before closing.

 

If you were to deposit the funds on February 15, then you wouldn't be able to use those funds, unless you have at least two of your monthly bank statements showing that the funds have been sitting in there.


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