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Mortgage approval or denial?

Established Member

Mortgage approval or denial?

My husband and I are going to be applying for a mortgage within the next 4 months.  What do you think our chances of being approved are?

 

$50k per year

DTI is 12% (contains car payment and 1 credit card)

Fico is  720

credit report has 2 negative marks:  bankruptcy from 2005 (spouse lost job.  So we filed on everything including an FHA mortgage)  and $40 medical bill that went to collection ( paid once we realized it was there)

We have not made any late payments at all. 

 

Message 1 of 11
10 REPLIES
Valued Contributor

Re: Mortgage approval or denial?

You have a good chance for approval. Let your LO or Broker guide you to the program that would work best for you.
Good Luck
May all your dreams and wishes become a reality!
Message 2 of 11
Valued Contributor

Re: Mortgage approval or denial?

+1, you have an excellent chance for approval. I know you said you had a BK from 2005. Was it a Ch 7 or 13? A Ch 7 is usually discharged within 3 months of the filing date. A Ch 13 is discharged after finishing the 3 or 5 yr plan. With either bankruptcy, I think your odds are good. I recommend contacting a mortgage broker for preapproval if you are ready to buy.

Did the FHA loan included in bankruptcy go into foreclosure? If yes, what was the foreclosure sale date?
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 3 of 11
Established Member

Re: Mortgage approval or denial?

It was CH 7 and the house did go into foreclosure.  Sheriff sale was held May 2007.  Is that the date you are asking for?

Message 4 of 11
Valued Contributor

Re: Mortgage approval or denial?

You will have the banks begging for your business.

Message 5 of 11
Valued Contributor

Re: Mortgage approval or denial?

Yes and no tooleman. Since was defaulted on a government insured loan it isnt as easy for approval. But it is doable.
Good Luck
May all your dreams and wishes become a reality!
Message 6 of 11
Established Member

Re: Mortgage approval or denial?

I did notice that the foreclosure is no longer on my credit report.  

 

This whole process is going to make me a nervous wreck before it's over with.  Smiley Happy

Message 7 of 11
Highlighted
Valued Contributor

Re: Mortgage approval or denial?

I thought as long as you wait it out you were ok.

 

If this another one of those underwriter calls, where you fit the mold but they still say no.

Message 8 of 11
Valued Contributor

Re: Mortgage approval or denial?

I think your fine since the foreclosure sale was over 5 years ago...that is usually the max waiting period required before you can get another mortgage loan. You are also more than 2 years from your BK discharge date so I think you will be fine.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 9 of 11
Valued Contributor

Re: Mortgage approval or denial?

Defaulted government insured loans even though they are off credit reports they are still in their database.

Its kind of like being blacklisted for a credit card when defaulted with certain companies.
Good Luck
May all your dreams and wishes become a reality!
Message 10 of 11