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New Contributor
Wonderyears
Posts: 68
Registered: ‎12-08-2012
0

Interested in trying for preapproval...

Is this the first step?
I really want to see where I stand. I am hoping to be financed alone(as my wife went through bankruptcy ~2 yrs ago) I am hoping to buy March - May. Scores are 715 tu (shows an unpaid judgement - in process of satisfying, payment in full goes out tomorrow) and 761 eq. No installment loans. No other derogatories. 3 inquiries. All cards kept below 10% and paid in full each month.

I am so unsure about who to speak to/ who to trust. I filled out an inquiry online, and lenders have been calling nonstop. I have spoken to a few, and they all have been pretty cool, but of course they can only go so far without pulling my credit.

What do I look for in a lender?
Why am I so uneasy to give it a go?

They all mention I seem to be in decent shape (scores, dti, my stated income) but until they get my reports and tax returns, nothing for sure.

Just ranting...

Thoughts and advice appreciated!
myFico TU-715 EQ-778 (01.14.2013) WalmartTU-664 (12.12.12))

LENDER PULL EQ-766 EX-779 TU-713 (12.20.2012)
Valued Member
tshope4205
Posts: 39
Registered: ‎11-09-2012
0

Re: Interested in trying for preapproval...

It's a nerve-wracking process, so I think it's normal to be nervous - but if you're ready to purchase, then jump in!  It seems like you have a pretty good handle on your scores & shouldn't have much of a problem!


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Valued Contributor
Mike_B03
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Interested in trying for preapproval...

There are a few questions to answer to help you know if you're ready to move forward...

 

Are you looking for a new construction or for a resale?

What price range are you thinking?

How much do you have for a down payment?

What is your total income by yourself and would you qualifty for the loan by yourself with that income?

 

Start with those and I think we can all guide you a little better.

New Contributor
Wonderyears
Posts: 68
Registered: ‎12-08-2012
0

Re: Interested in trying for preapproval...

Thanks tshope, Mike!

Mike, what difference does new construction make? We are looking at both. Price range 2-240, min of 25k down, hopefully near 40. Income alone is 60k. My wife makes about 65k but has a BK a little less than 2 yrs ago. Hoping to be able to do this alone as our current lease is up in May, and our family is growing! I was just reading about front and back end ratios, and this seems to make me borderline at 28%. Is 28% concrete. My back end should be fine; I have no debt. I read dated posts here that mentioned front end ratios at 44.99%. Is that outdated? Any other factors I should keep in mind?

Thanks! Love these forums!
myFico TU-715 EQ-778 (01.14.2013) WalmartTU-664 (12.12.12))

LENDER PULL EQ-766 EX-779 TU-713 (12.20.2012)
Valued Contributor
Mike_B03
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Interested in trying for preapproval...

Heh, now there are threads going...should probalby let one die off and continue the conversation in this one.

 

Reason I was asking about the new build vs resale is with the new sale you can have more time to correct some credit problems usually, and it could be easier to qualify if you use the builder's mortgage company.

 

I don't see they the front end ratio is such a concern. For a $200k mortgage at 3.5% interest, you're payment would be in the $1300 range (inc. taxes, insurance), which means you'd need to make about $4,650/month or $55,800 per year and it sounds like you do by yourself. If you both are on the loan and combine your income, it shoulds like it shouldn't be a problem at all.

 

How is your self-employment setup? Incorprated or?

New Contributor
Wonderyears
Posts: 68
Registered: ‎12-08-2012
0

Re: Interested in trying for preapproval...

We were leaning new construction. (At least my wife was, and that is all that matters!)

Don't think she'll be on the loan.
As far as the ratios, I was playing with online calculators, conservatively with my income (still want to write off as much as possible and stay qualified!).

I have been a sole proprietor the last 5 yrs. I am in the process of converting to an LLC. Would this be a must to be financed?
myFico TU-715 EQ-778 (01.14.2013) WalmartTU-664 (12.12.12))

LENDER PULL EQ-766 EX-779 TU-713 (12.20.2012)
Valued Contributor
Mike_B03
Posts: 1,146
Registered: ‎11-30-2012
0

Re: Interested in trying for preapproval...

No, you can be a Sole Proprietor, tha'ts not a problem. You'll just need to show them your taxes for the past two years and figure out what your income is (there are things you can add back in for example, so you don't have to pay taxes on them but still get to count them as income).

 

You can download this form which will guide you in how to figure out your income. I used it for myself and was accurate.

 

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CDIQFjAA&url=http%3A%2F%2Fwww.a...


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