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Established Member
Posts: 30
Registered: ‎06-27-2012
0

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. 

 

Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
0

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!
Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

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! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Established Member
Posts: 30
Registered: ‎06-27-2012
0

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?

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

Re: Mortgage approval or denial?

You will have the banks begging for your business.

Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
0

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!
Established Member
Posts: 30
Registered: ‎06-27-2012
0

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.  :smileyhappy:

Valued Contributor
Posts: 2,300
Registered: ‎08-25-2011
0

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.

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
0

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! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Valued Contributor
Posts: 3,302
Registered: ‎06-09-2010
0

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!
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