cancel
Showing results for 
Search instead for 
Did you mean: 

Getting prepared for first mortgage

tag
jennordy
New Contributor

Getting prepared for first mortgage

Hi everyone.  I'm not new as I've had an account here for awhile, but I haven't logged on in a couple of years.  I decided I want to buy a house in the next 2-3 years (my first even though I'm in my 40s lol).  I live in the SF Bay Area so rents are high and keep rising, so my mortgage would be about equal or only slightly higher than my rent. I figure if I'm going to pay that much, it may as well be mine!  So I'm trying to get my credit in better shape and raise my scores, and start saving money for down payment/closing costs/reserves, etc.  I think FHA is probably my best bet.  I'm posting this for accountability and to be able to easily track my progress and have all info in one place, but if you have any suggestions as far as my credit or mortgage advice, etc. please feel free to respond.  Thanks.
 
1. Mortgage Credit Scores:  
    • My FICO mortgage scores are currently:  EX 566, EQ 567, TU 588.
2. Credit Negatives: 
    • Type: I currently have 10 charge-offs and 7 collections (one is only on TU and has recently been listed as "closed").  Two of the collections are small medical collections ($128 and $35).  I also have one paid collection listed on TU only.  I have a BK 7 that was filed December 2008.  I hava an auto loan that will be paid off by the end of 2017.  I also have student loans (one private and one consolidated, both currently in good standing).  I also have a lot of inquiries dating from 11/2014 to 8/2016, but most are from 2015 and will drop off next year.  I was getting my credit back in order after my BK and then my husband and I separated then divorced and I had to pay him spousal support, so that is why I got into credit trouble again.  I do have some positive credit: 2 Cap1s (got my limits increased just yesterday), Nordstrom, 4 Comenity store cards.
    • DOFD: These vary from 4/2012 to 1/2013.  About half are past the SOL for my state and the other half will be past by Jan. 2017 at the latest.
    • Most Recent: My most recent lates are mostly with my car.  I have a total of 6-30 day lates since 3/2015 (most recent 12/2015) and 2-60 day lates since 4/2015 (most recent 1/2016).  I have one late for my Nordstrom card from 2/2016 (entered the wrong account number through my online banking).  I had my student loan rehabbed in 2014 and it is currently deferred but will be coming out of deferment in Jan.
3. Gross Income.  $90,000 before all taxes/deductions.  Also receive $787/mo. SSDI for my daughter until she's 18 (she's 10 now).  I receive $315/mo. for my 17 year old but that will end in May 2017.
 
4. Source of income.  Where is the income coming from? List each source.
    • Employment, hourly
    • Social security (for my 10 year old daughter)
5. Monthly debt payments
    • Minimums on my credit cards:  $196.  I plan to have these paid off before I apply for mortgage.  I pay my Cap1s in full every month then use them for expenses throughout the month.  $296 for car payment.  I plan to have this paid off before the mortgage.
    • Student loans: When they come out of deferment my payments will be $770.  These payments will fully amortize the loan in the loan period.  My private student loan payment is $135.
6. Employment (for those who are employed). 
    • Type of employment: Full time, W-2
    • How long have you been on the job:  9 years
    • How long have you been in the industry/career field:  20 years
7. Assets/ReservesThis is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).
    • Savings (none right now, plan to save $240/pay period (every 2 weeks) starting Jan 2017).
    • Checking
    • 401k (about $50k but have some loans against it).
8. Location:  This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items.
    • State: CA
    • County(s): Contra Costa (may consider purchase in nearby counties as well)
    • City or zip(s): 94804
9. Property Description: 
    • Single family house or condo
10. Property Value
    • I think if I payoff all credit cards and only use student loan amounts my dti will allow me to purchase a home for between $322k and $403k depending on down payment, interest rate, lender allowed dti, etc.
11. Occupancy
    • Primary residence:  Yes.
      • How many people living there:  3 (although older daughter will be away at college).
      • Are all mortgage applicants going to be living in the house?  Yes.
12. Transaction Type.  Purchase, first-time buyer.  May qualify for MCC depending on how much my salary increases within next 2-3 years.
FICO® 8 Scores: 10/16: TU 592 -- EQ 579 -- EX 573; 11/16: TU 626 -- EQ 614 -- EX 605; 12/16: TU 606 -- EQ 589 -- EX 594
FICO® Mortgage Scores: 10/16: TU 588 -- EQ 567 -- EX 566
10/16: Negatives: 10 charge-offs; 7 collections (one "closed"); 1 Ch. 7 BK (filed 12/2008)
Positives: 2 Cap1s; Nordstrom; 4 Comenity store cards; Amazon store card, Care Credit, 76 gas card, and F21 Visa; 2 student loans
Message 1 of 6
5 REPLIES 5
GetMeSlick
Established Contributor

Re: Getting prepared for first mortgage

Fantastic post. All the best for your goal. 

1/6/2023 FICO TU-840|EX - 838|EQ -840
Total Credit - $470K+
Starting Score: 640
Current Score: 840
Goal Score: 850


Take the myFICO Fitness Challenge
Gardening since Sep/2021
Message 2 of 6
jennordy
New Contributor

Re: Getting prepared for first mortgage


@GetMeSlick wrote:

Fantastic post. All the best for your goal. 


Thanks so much!

FICO® 8 Scores: 10/16: TU 592 -- EQ 579 -- EX 573; 11/16: TU 626 -- EQ 614 -- EX 605; 12/16: TU 606 -- EQ 589 -- EX 594
FICO® Mortgage Scores: 10/16: TU 588 -- EQ 567 -- EX 566
10/16: Negatives: 10 charge-offs; 7 collections (one "closed"); 1 Ch. 7 BK (filed 12/2008)
Positives: 2 Cap1s; Nordstrom; 4 Comenity store cards; Amazon store card, Care Credit, 76 gas card, and F21 Visa; 2 student loans
Message 3 of 6
jennordy
New Contributor

Re: Getting prepared for first mortgage

Update:  In less than 3 weeks my Fico 8 scores have increased:

 

10/16 my scores were:  EQ 579, TU 592, EX 573

Today (11/2) my scores are: EQ 611, TU 610, EX 609

 

This was mainly from paying off my small Comenity balances and my Nordstrom card.  

 

I still have a long way to go but it's good to see progress, and that all my scores are above 600 now.  I will update my mortgage scores in January.  Can't wait to see how that goes.

FICO® 8 Scores: 10/16: TU 592 -- EQ 579 -- EX 573; 11/16: TU 626 -- EQ 614 -- EX 605; 12/16: TU 606 -- EQ 589 -- EX 594
FICO® Mortgage Scores: 10/16: TU 588 -- EQ 567 -- EX 566
10/16: Negatives: 10 charge-offs; 7 collections (one "closed"); 1 Ch. 7 BK (filed 12/2008)
Positives: 2 Cap1s; Nordstrom; 4 Comenity store cards; Amazon store card, Care Credit, 76 gas card, and F21 Visa; 2 student loans
Message 4 of 6
tlittlejohn
Established Member

Re: Getting prepared for first mortgage

We are in this together. I am on the east coast. How did you get your mortgage score? 

Message 5 of 6
jennordy
New Contributor

Re: Getting prepared for first mortgage


@tlittlejohn wrote:

We are in this together. I am on the east coast. How did you get your mortgage score? 


On this site you can order a 3B report with the mortgage scores.  You can order one bureau or all three.  It gives you the FICO 8 scores and a bunch of other different models of the scores, including the mortgage versions.

 

Good luck and keep me posted on your progress!

FICO® 8 Scores: 10/16: TU 592 -- EQ 579 -- EX 573; 11/16: TU 626 -- EQ 614 -- EX 605; 12/16: TU 606 -- EQ 589 -- EX 594
FICO® Mortgage Scores: 10/16: TU 588 -- EQ 567 -- EX 566
10/16: Negatives: 10 charge-offs; 7 collections (one "closed"); 1 Ch. 7 BK (filed 12/2008)
Positives: 2 Cap1s; Nordstrom; 4 Comenity store cards; Amazon store card, Care Credit, 76 gas card, and F21 Visa; 2 student loans
Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.