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Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Help with plan to boost credit score


onrails wrote:

ShanetheMortgageMan wrote:

onrails wrote:

Whether or not it counts will obviously affect my DTI ratio. ($6000 vs $7000 per month in income)  After paydown on my cards, we will have about a $550 per month total debt payment not including any mortgage payment.  How high of a mortgage payment do you think we would qualify for?


 

Would depend on what your other monthly debt payments (credit cards, student loans, personal loans, car loans, etc.) would be at the time you have your credit checked.


$550 would be the total of all other debt payments.  My wife has a student loan for $227 per month and the new payments on the other credit cards including hers would be about $310.  We have no car loans or anything else.


Not sure exactly where you are buying, but with $75/mo for homeowners insurance, $4,065/year in property taxes, and a .89% per year in PMI your max sales price would be about $305k with a monthly payment of around $2,100/mo.

Member
onrails
Posts: 29
Registered: ‎01-30-2014
0

Re: Help with plan to boost credit score

OK, I can see the point from a lenders perspective.  I suppose I would need to explain the $1000 deposits in my checking account every month anyway though right?

Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Help with plan to boost credit score


onrails wrote:

OK, I can see the point from a lenders perspective.  I suppose I would need to explain the $1000 deposits in my checking account every month anyway though right?


Yup, definitely.  Just provide copies of the checks for whatever deposits are on the bank statements you supply + a LOE on it.

New Contributor
edcampbell613
Posts: 200
Registered: ‎01-24-2014
0

Re: Help with plan to boost credit score

[ Edited ]

Based on your income the 1,000.00 is less than 50% of your income, only if you had real large deposits. Then a source of deposit would be required. Now the bank might "back out" the 1,000 for your deposit, to fight that you can get a gift letter from your mother and use it as "gift funds".  Welcome to the age of "prove it"

Member
onrails
Posts: 29
Registered: ‎01-30-2014
0

Re: Help with plan to boost credit score


ShanetheMortgageMan wrote:

onrails wrote:

ShanetheMortgageMan wrote:

onrails wrote:

Whether or not it counts will obviously affect my DTI ratio. ($6000 vs $7000 per month in income)  After paydown on my cards, we will have about a $550 per month total debt payment not including any mortgage payment.  How high of a mortgage payment do you think we would qualify for?


 

Would depend on what your other monthly debt payments (credit cards, student loans, personal loans, car loans, etc.) would be at the time you have your credit checked.


$550 would be the total of all other debt payments.  My wife has a student loan for $227 per month and the new payments on the other credit cards including hers would be about $310.  We have no car loans or anything else.


Not sure exactly where you are buying, but with $75/mo for homeowners insurance, $4,065/year in property taxes, and a .89% per year in PMI your max sales price would be about $305k with a monthly payment of around $2,100/mo.


We would be buying in Union County, NC.  The combined city / county tax rate there is .8528 per $100.  I assume that is with the $6000 / month?  What front and back ends are you using?

Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Help with plan to boost credit score

New Contributor
edcampbell613
Posts: 200
Registered: ‎01-24-2014
0

Re: Help with plan to boost credit score

NIce, I am in Cabarrus County.

Member
onrails
Posts: 29
Registered: ‎01-30-2014
0

Re: Help with plan to boost credit score


ShanetheMortgageMan wrote:

Yup, with $6k/mo of income.  45/45% is what I am using. 


I'm surprised it can go that high.  Not that we would want to.  We are trying to get into the 270,000 range.  I keep reading that front end ratios on a conventional are in the 30's.

Member
onrails
Posts: 29
Registered: ‎01-30-2014
0

Re: Help with plan to boost credit score

[ Edited ]

edcampbell613 wrote:

NIce, I am in Cabarrus County.



Hi neighbor!  We are currently in Mecklenburg but are wanting to escape the higher taxes and the school system is better in some areas as well.  Property taxes would be about 55% of what we pay now.

Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Help with plan to boost credit score


onrails wrote:

ShanetheMortgageMan wrote:

Yup, with $6k/mo of income.  45/45% is what I am using. 


I'm surprised it can go that high.  Not that we would want to.  We are trying to get into the 270,000 range.  I keep reading that front end ratios on a conventional are in the 30's.


Manual underwriting is 31/43%, which is what everyone safely references since debt ratios at that level are perfectly acceptable, however very few banks will manually underwrite a conventional loan as it's difficult to do, and so with automated underwriting approvals the max ratios are 44.99/49.99%... although above a 45% back-end ratio is difficult to get approved (need to be extremely well qualified).


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