NEW LINES OF CREDIT/MORTGAGE?

[Anonymous]

I KNOW THEY SAID NO NEW LINES OF CREDIT...WHAT IF I APPLIED ALREADY...AND JUST HAVE NOT HEARD ANYTHING BACK YET...I PLAN ON APPLYING FOR MY MORTGAGE WHEN THIS RECENT COLLECTION COMES OFF MY REPORT...IT CAME OFF EXPERIAN...+46 POINTS...BUT I'M WAITING ON THE OTHER TWO TO UPDATE...IN THE MEAN TIME..I APPLIED FOR A HOOTERS CREDIT CARD...AND GOT THE 7-10 DAY NOTIFICATION MESSAGE...IT HAS ONLY BEEN 4 DAYS...ALSO I APPLIED FOR CROWN JEWELERS...I GOT THAT...BUT THEY ARE NOT REPORTING YET...THE HOME BUILDERS ARE TRYING TO GET ME PRE-APPROVED AS SOON AS POSSIBLE BECAUSE OF PRICE INCREASES...BUT I'M NOT WORRYING ABOUT THAT...I JUST WANT THE JAN. 2008 COLLECTION OFF BEFORE...JUST IN CASE IT GOES TO MANUAL UNDERWRITING...AND IT DOESN'T LOOK BAD ON MY PART...PLAN ON GOING FHA...$60,000 A YEAR INCOME...WELL I THINK MORE...I HAVE ALREADY MADE $25,000 THIS YEAR...CAR LOAN $359.26...MY CREDIT CARDS $95.00(TOTAL)...WIFES CREDIT CARDS $65.00(TOTAL)...HOUSE $124,300.00...SCORES:

TU-591 (COLLECTION STILL TO COME OFF, CROWN JEWELERS HAS TO REPORT)
EX-593 (DUPLICATE ENTRY HAS TO COME OFF, CROWN JEWELERS HAS TO REPORT)
EQ-537 (COLLECTION STILL TO COME OFF, SCORE SO LOW BECAUSE OLDEST ACCOUNT IN DISPUTE AND FACTORED OUT)

SO MY QUESTIONS ARE DO YOU THINK I CAN QUALIFY FHA AUTOMATIC UNDERWRITING...AND SHOULD I WAIT TO APPLY UNTIL AFTER THE COLLECTION COMES OFF...AND WAIT FOR THE CREDIT CARDS TO REPORT...I'M IN NOT REALLY IN A RUSH...BECAUSE THE HOUSE WILL NOT BE FINISH BEING BUILT UNTIL EARLY-MID JUNE...BUT I NEED TO SIGH A CONTRACT TO BE GUARANTEED THE HOUSE...AND I NEED TO BE PRE-APPROVED BEFORE SIGNING THE CONTRACT...

Message Edited by slyhouse08 on 05-01-2008 08:52 AM

[ShanetheMortgageMan]

Usually scores below 600 have a tough time getting an automated approval unless there are some significant compensating factors.  Compensating factors such as a significant down payment (10% or more), a low debt to income ratio (usually below 30%), and excessive reserves (usually 6-12+ months).  Your debt to income ratio is low, but it's around 33%, so in my opinion that might not cut the mustard regarding getting an automated underwriting approval or not.  How much are you putting down?  If it's 10% or more, and because you have a low debt to income ratio, then that would improve your chances of getting the automated underwriting approval.  If you can wait, and it appears you can, I'd wait until the collection comes off and your scores update... the FHA pre-approval process would require less paperwork if you are able to get an automated underwriting approval.

[Anonymous]

I don't have the 10%...I'm still recovering from my wedding...wedding was March 15th...and I recently have been paying old debt...so my credit report can at least look better...for the home loan process...in case we do have to go through manual underwriting...the builder has a guaranteed 5.875%...and a no money down guarantee...with their preferred lenders...I plan on using a down payment assistance program...