Mortgage Advice Please!

[SupaModel87]

I'm going to try and make this as concise as I possible can but the jest is I'm freaking out about the loan amount I will be approved for so here's the scenario:

I've been at my current position for 3 years before I was a recent grad looking for work but still working a part time to pay CCs and miscellaneous bills....lost my PT job and my bills went unpaid plus I had an expected hospital visit which was another bill(s) I could not pay I got a job and started to repair my credit....I paid both credit cards off(late payments) and hospital bills---both went into collections. And started monitoring my credit religiously.

FF to the present....I make about $33k/year...I have 2 credit cards in my name but a relative is the one who uses and pays the bills every month($173/month). The only debt I pay as of now is a car note which is $291 and I had surgery in March so I'm paying that bill as well but should be done in the next 2 or 3 months paying that off. I have almost $12k saved up and my dad said whenever I start the housing process he would give me $20k. I've talked to a couple of lenders but I'm waiting until February to apply for the mortgage...one lender told me if I can get my car loan down to 10 payments it would not count towards my debt. I'm not exactly sure what credit score on myFico to go by it ranges from 666 to 701! Everyone seems to use different credit scores so Idk! I'm just worried I dont make enough to get the house I really want there is a brand new subdivision being built as well as new homes being built in another area I'm interested in living in and the homes from the listings range from $153k-$189k! I would love to not have to come out of pocket as much as possible. Like I said in the beginning of the post I'm just freaking out about the loan amount, so am I dreaming too big or what? Plus any helpful tips and advice is greatly appreciated!

[JVille]

Confused? You spoke to a lender AND they said you would qualify for ?? How much? Did they do a pre-qualify, counciling, pull your credit and share your Fico Mtg scores with you? Did the lender pre-qual line up with the expectations about the ability to purchase in the “new” subdivision you spoke about...... where exactly did you get the scores you mentioned? You can get the actual scores Lenders use on this website. Don’t believe the so called Free scores they are not what lenders use.

[Anonymous]

You wpuld benefit by doing a little research. Add up all your monthly debt payments and reaearch debt to income ratios. That will tell you exactly where your mortgage payment should be to get approved. Then calculate cost of home, including taxes, mortgage insurance and property insurance estimates for your area. This will give you an idea of wjat your mortgage will be. No need applying for prequal if the house you want is unattainable based on all the numbers. I hope it works out for you!

[JVille]

I consider a visit and a good old fashion pre-qual a great education in the reality of your situation or any lender involvement that includes a 3 Bureau pull.

[NC_Mtg_Loaner]

I gave JVille some kudos on his recommendation for you to pay a visit to a lender for a pre-approval as you'll surely benefit from that analysis.

It's not likely to cost you any money--only the opportunity cost of wasted time of not knowing what you might need to know that you didn't know to document in your post above.   

Ambiguous, yes...sorry for that, but some folks financial scenario can be more complex than others so it's really best for you to reach out to a trusted professional and see for yourself.   If you don't have one yet then it's definitely time to start searching for one.

[JVille]

I’m a very “Old School” kinda girl. I learned the Mtg Lending Business Long Long ago before Credit Scores and Liers Loans (remember those?). And the funny thing is the rules have gone Full Circle and have returned to and exceeded the craziness I learned to follow.

Sitting down with a skilled Lending Professional will give you an Education in how the rules work in your particular situation and give you a roadmap on achieving your Home Ownership goals. The lending rules may not always seem fair but you need to understand how to work with them.

Ask friends and family for recommendations or if you have a relationship with a Realtor ask them for a couple names of LOCAL (Not internet) Loan Officers who are good with 1st time Buyers.

[NC_Mtg_Loaner]

I gave JVille some kudos on her recommendation for you to pay a visit to a lender for a pre-approval as you'll surely benefit from that analysis.

It's not likely to cost you any money--only the opportunity cost of wasted time of not knowing what you might need to know that you didn't know to document in your post above.   

Ambiguous, yes...sorry for that, but some folks financial scenario can be more complex than others so it's really best for you to reach out to a trusted professional and see for yourself.   If you don't have one yet then it's definitely time to start searching for one.