09-15-2012 08:13 PM
First off, I want to thank the regular contributers of this forum for the wealth of information they've provided. I have learned quite a bit perusing previous posts. You all provide a huge service to us novices.
I'll go ahead and get the major irregularity out of the way: I'm currently a college undergraduate, nearing a December graduation date. I will not seek pre-qualification until I've accepted an offer of employment, but that may be imminent (within the next 2 weeks). If I qualify for a mortgage, I would like to close on a house sometime in early 2013. That being said, here's the relevant info as directed by "Info needed" sticky:
1. Credit: The middle score was Equifax, 675.
Negatives: I have 2 medical collections totaling $200. I actuatlly wasn't aware of this until I checked my credit scores. Based on information I've gathered from these forums, I should be able to have these removed with a positive impact on my credit through "paying in full" and good will letter-writing. I would appreciate comfirmation of this, if anyone has a good grasp of the process.
2. Income: I currently have 3 hard offers of employment, all from companies in areas of the state with which I'm very familiar. The offers are in the range $60-68k. One of the offers is from a company that I've worked with while in college, for the last 3 years. All offers are in my field of study.
3. Source of income: Employment
4. Monthly debt payments: None, and no student loans.
5. Employment: See "Income" above. All offers are for full time. I'm currently part time in my field of study.
6. Assets/Reserves: Approx. $13,000. This does not include my emergency fund, which amounts to roughly 4 months' expenses.
7. Location: Upstate South Carolina.
8. Property: I would be looking at a single family home in "ready to move in" condition.
9. Value: The range of home value I'm comfortable with is between 50-75k. This range is based on list prices gathered from online listings. Based on rudimentary mortgage calculators, I realize that if I waited a year or so into employment, I might qualify for a higher range. But I suspect my needs will change in the next decade, and given my circumstances, I don't feel that I need anything beyond the specified range. Since I expect to remain in the same area, I would rather build equity than pay rent.
10. Occupancy: Primary residence.
11. Transaction type: Purchase.
If I qualify, I'm interested in a 15 year fixed rate with no prepayment penalty. I would also like to deal with local lenders, but I'm concerned they will be reluctant to discuss pre-qualification with me given my circumstances. Any information, help, or instruction you could supply would be greatly appreciated. I thank you all in advance for any responses, and you have my gratitude for reading my post.
09-16-2012 04:52 PM - edited 09-16-2012 04:54 PM
At this point it doesn't hurt to talk to lenders about doing an FHA loan... ask them specifically how your employment history will be viewed before you let them pull credit. Did you file taxes or did your parent claim you on theirs. If your parents claimed you; you may need a copy of their returns. If they did not claim you; then you'll need your returns. Your cash on hand will help overcome many obstacles. The fact that you are not switching industries is a positive thing. If you wait tip February; you'll have a more solid income reporting on your taxes. Do you have 3 tradelines reporting on your credit report?What was your w2 income in 2011? What was your w2 income in 2010?
09-16-2012 06:04 PM
I appreciate the response. I've filed taxes the last 3 years. If it makes the most sense for me to wait until February, or I don't have any choice in the matter, I will. I have 2 tradelines reporting...I suppose 3 would be optimal? My W2 Income in 2010: 30300; 2011: 18650. I worked less full time in 2011, leading to the discrepancy.
09-16-2012 06:54 PM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.