Hello all - My wife and i are in the process of our first home. combined DTI is somewhere around 40-45% but this is based on 2 year average income which is much lower than current and anticipated income.
We are recently married and our bank statements show all kinds of odd transactions as a result. We currently have $7600 in checking/savings and we probably getting a gift letter from a family member for several thousand dollars. When we were preapproved we had most of this in savings but it has since been transferred to checking. the house is $250,000 and the sellers are contributing closing, so we need about a $9000 down payment which is not a problem whatsoever.
We have never missed any payments. no collections, no nothing. just high utilization - probably 50% overall. This is causing credit scores in the mid 600's.
My questions/concerns are mainly due to large deposits:
one of my cc companies recently offered balance transfers as a deposit into a checking account. I took advantage of this. We have a 4700 dollar and 2000 dollar one and I used them to make payments on cc's during/after the wedding. So it does not appear, nor is it true that this money was used to 'finance' our down payment.
Is this going to be a concern to the underwriter? We are easilly able to save up cash reserves for our payments and down payment by simply not paying all our excess income to our credit cards - instead now we are paying closer to the minimum to save up. I'm just worried that they'll want an explanation for this and they'll consider "credit card balance transfer" a sketchy answer since it was deposited into an account.
our parents helped contribute to the wedding - mine paid me directly - $5000. So thats an easy explanation.
AND we also got about $4500 in cash/check gifts during the wedding. i opened a savings account and deposited this right before we were preapproved.
My concern is that although our incomes are solid - $6000/month or more combined post-tax, they are going to be concerned with the recency of these deposits.
our loan officer wanted to make sure we are getting a gift of several thousand dollars. I think this is because he sees our average checking balance is around $4-5000 and so a gift of $4-5000 would cause the MRI to be met regardless of all these wedding deposits, etc. What do you guys think?
