Likelihood of Application

[redwhisky]

Hello All,

I wanted to run my current situation by the experts and the invidividuals with experience on this board.  I have about 6 months of saving left before i hit my target month (nov).  I plan to buy a house this year and wanted to lay things out for some to take a peek at to give their 2-cents.

No baddies

close to 20k for downpayment

10k of CC between 2 cards - 200 minimum payment for both (100 each)

12k car loan - 280 monthly.

Income: low six-figures

Target Amount if no more than 330k for 30 years.

I wanted to pay my CC's down more, but that would impact the down payment.

What do you guys think?

[StartingOver10]

What are your scores from here?

If you are going for a conventional loan it pays to get your scores above 720 for PMI rates. MI is substantially less if your score is above 720.

You only need to put down 5% to get a conventional loan.

Is your income self-employment type income (or 1099 type) or is it w-2 type?

[redwhisky]

Whoops i missed that..im 750+ and im employed w2.

[MaddMatter70]

Looks good in my oppinion, unless that 10k in credit card debt is near or above 50% of the total available.  Then you may be in trouble from a score standpoint

[StartingOver10]

Oh, don't even worry about paying down the debt then unless the lender pulls lower scores. You should be fine.

[redwhisky]

Yea, one of them is right around 50 and the other is far off from that mark.

But, sweet.

Now i can go research some things on conventional, FHA and VA.

From the last message it seems that conventional may be the way to go?

[redwhisky]

Very cool, thank you, guys.

Anything else i should be aware of in general?

[StartingOver10]

Definitely go conventional if you can.  With a conventional loan the MI drops off when the LTV reaches 78%. For FHA the MI is paid for the life of the loan.

If you have one card at 50%, consider dropping it to less than 30% utilization to be safe. But it really isn't required with your scores. By the way, I am assuming your scores are from here, MyFICO and not from some other Fako site like Credit Karma or one of those, right?

Compare FHA and Conventional loan programs...but really just because of the mortgage insurance it is far better to get a conventional loan.

[redwhisky]

Yes, sir.  Thank you very much.  I will get that down to 30% just to be a little more safe.  And, yes, the scores are from here.

Another quickie, the scores from experian and equifax, are those the true ficos (when you requested here).?  I am wondering this because the scores straight from experian seem like fakos to me.  But, the last time i pulled scores were early last year from that site, but I got the latest, today from myfico.

[StartingOver10]

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@redwhisky wrote:

Yes, sir.  Thank you very much.  I will get that down to 30% just to be a little more safe.  And, yes, the scores are from here.

Another quickie, the scores from experian and equifax, are those the true ficos (when you requested here).?  I am wondering this because the scores straight from experian seem like fakos to me.  But, the last time i pulled scores were early last year from that site, but I got the latest, today from myfico.

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There are so many formulas that each of the CRA's use. The lenders use FICO scores, but the version of FICO is different than what we are allowed to see as consumers. The scores that you buy directly from Experian and Equifax are not Fico. They are Fako scores. Unfortunately the lenders use a different version than what we are allowed to see and we can't go anywhere but directly to a lender to get the actual version. The version we get here is the consumer version.

Here is a series of  threads that might help http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Frequently-Requested-Threads/td-p/19320