Mortagage qualification insight request, What do you think?

[doublespaces]

Okay so I should be able to show 75k this year in income.

My credit scores: EQ 610 TU 637

The EQ score doesn't reflect a collection account from 9/2009 that is being removed and that my CC balances have been paid from 40% down to 1%.

The TU Score doesn't include another collection from 03/2009 being removed as well as a 150 late LOC that was deleted as well. When this LOC was deleted from EQ I got 18 point increase. The score also reflects 40% CC utilization but I have paid to 1%.

So this is what remains on my accounts after everything is cleared up that is supposed to be:

EQ:

Capital one Auto, 4x 30 day late. It was one early in the year and one late in the year, two years in a row. Last late will be November 2010 which is about the same time that I apply.

Sallie Mae 90 day and 120 day late from 2006

TU: Same Capital One Auto 4x 30 day lates as EQ.

The Myfico simulator puts me at TU 687 if I pay my bills on time for 6 months with the previously mentioned items still on the report.

I want to apply October/November and be in a house at the end of december. I have a car payment, but I will be paying it off before I close. I won't be paying it off too soon since I don't want to mess up my credit mix. I want to get credit scores in their hands before I pay off and show them the title to the car. Wells fargo said they only pull one score and that the score is good for 4 months. I have no other monthly debts. I am going into child custody battle in july, however I'm fighting for sole custody and don't want to include child support into this equation although I know it would should I have to pay it.

I am thinking of putting about 10k down or so and show about 30,000 in seasoned funds for reserves. The income will be 'self-employed' comission based, I'm hoping that they will allow me to us a P&L statement to prove my income over the last 12 months as I took a large portion of time off in 2010 and can only show about 35k. I grossed 100k in 2009 but adjusted down to 40k since I had a lot of expendatures from running a businss myself that I never experienced again due to contracting with someone else who absorbed those costs. 2008 I was regular employed at 80k and so far in 2011 I've made 50k to date from january to this month of june and should continue strong with no change. A P&L over the last 12 months will show over 75k adjusted if they will accept it.

This will be a first time purchase in Arizona.

If anyone can give me some feedback or comments that would be great, thanks!

[ShanetheMortgageMan]

Other than the income issue which you already know my thoughts on, your credit should be OK particularly with the amount of reserves you can show.

[doublespaces]

Wonderful, thanks again shane. Should my 75k a year hypothetically be accepted, any ballpark figure that they might approve me for?

[ShanetheMortgageMan]

You are welcome.  I would need to know where you are buying and what the minimum required payments on your debt at the time you plan on applying.

[doublespaces]

I'll be purchasing in Chandler Arizona. I'll have no debts.

[ShanetheMortgageMan]

With FHA financing you should be able to qualify for the FHA loan limit in Maricopa County with just a 3.5% down payment, which would translate to about a $358,000 sales price... that can get you some real nice homes in Chandler.