As the title says I am looking to purchase a home in the in about 8 months when my lease runs up. I know this is some ways away but I want to make sure I am heading in the right direction. I also have some questions and am hoping you guys/gals can help me out with advice!
So first things first....
Credit - I am not sure on my EQ04 but as far as the FICO08 models I am anywhere from 695-730(it fluctuates a few points here and there depending on UTIL but stays in that range) I currently have 1 auto loan, 1 LOC, 3 store cards, and 9 revolving(credit cards). Oldest account is 9 years, AAoA is about 1.2 years (this is excluding AU's). No negatives whatsoever.
Income - $62-70k/year
Source of income - My salary is $50k + monthly bonus.
Monthly debt payments - $900 month with about $7k in CC debt.
Employment - 6 years with current employer, 11 years in the industry
Assets/Reserves - Currently have $4k in savings..
Location - Somewhere in the triangle, NC (wake county)
Property - Single family house, looking to spend around $150k.
Now for the questions....
1. I work in the restaurant business and have done so since I was 16. I currently manage a restaurant with a base salary of $50k. There is monthly performance bonus that I am eligble for in which I can make an extra $12-20k a year. My last 2 years tax returns show $62k and $63k. Is this going to be an issue to use for income?
2. I had to take a leave (approx 7 months, March2014-Oct2014) in which I moved back home to take care of my sick parents for awhile. I worked while I was there, in the same industry, making the same amount of money. I had a gap of about 2-3 weeks on each end in which I didn't work (moving, finding a place to live, etc.) Will this hurt my employment requirement for a mortgage? I realize it is going to drop my income for 2014 a little.
3. I currently have about $7k in CC debt that I will have paid down to $2k, if not paid off, by the time I apply. This will bring my DTI to roughly 16%. Is that acceptable?
4. I was very fortunate to have grandfather that left me a nice sum of money when he passed. It is currently in a trust fund and is about $180k. I am going to be using some of this for the down payment. Would this be considered assets/reserves? Or would it be a "gift" type deal.
I am currently in the garden as I don't want to hurt my AAoA or add any more inq's leading up the trying to get a mortgage. My last HP was 12/14. I am still reading up and trying to understand the differences between all the loan types(FHA,conventenial, fixed, etc). There is so much involved which is why I am trying to get an early start.
Any advice given will be greatly apreciated. Thanks in advance!
