We are fully pre-approved, offer accepted, mid mortgage score of 661 for me and 672 for the husband. Loan officer received the executed purchase agreement this morning.
The deets.
- I have a 2 year 6 month old bankruptcy chap 7, no mortgages included. No credit issues since. I've been with current employer for 1 year 7 months. Was laid off directly before that, but also worked part time and went to school full time while unemployed for 10 months. I have established credit cards, student loans, and an auto loan, all in good standing with good history since bk.
-Husband has 6.5 years with current employer. He has a 30 day late on auto loan in 2009. Another 30 day late on a bank card in 2011. And here's the one I am worried about. In December 2014, we had an unpaid final bill from Verizon pop-up, and we paid it when we were made aware of it. On Equifax and Transunion it shows paid and no lates. On Experian it shows two 90 day lates in Dec/Nov. It also appears like a revolving credit account on MyFico. The rest of his credit is good. His high mortgage score is 707.
Our loan officer is aware of all of this, he has pulled our credit reports, we have given him a ton of documentation and completed an application, and he gave us a pre-approved letter for the owners when we made our offer.
We will be sure to keep our credit card balances at or below the balance when our report was pulled so as to not drop our scores. We will not apply for anything else anywhere. We have no random debts that we expect to pop up, we are current and good on everything.
Our down payment is coming from a grant. Our loan will be FHA insured. Our closing costs are covered by the seller. Our earnest money was a gift from my grandma. All of the inspections and various fees will be covered by us. The mortgage back-end will be 24.5% and our DTI with the mortgage will be 41%, lender has approved us up to 45% DTI.
Our credit card balances are high. In total, with 11 cards ($6750 credit line total amount) between the both of us, we are about 80% utilized but individually some are close to 100% while others are around 25%. We've offered to pay some off and close them at closing if needed.
Our loan officer so far has been pretty upbeat and optimistic. I work for the state of Oregon, they have an employee benefit for help with home buying and he was the recommended loan officer by the state employee benefit board, they have worked with him 9 years, so I feel fairly confident he and the lender are reputable.
What I'm really afraid of is something causing us to get denied at the last minute.
Like...
-High credit card utilization even though our DTI will be under the FHA front end limit of 43%?
-Husband's Experian credit report shows those two 90 day lates for the paid Verizon Bill, and they are only 7 and 8 months old?
-We have a bunch of credit inquiries last year. None this year except the mortgage pull.
-I haven't worked for two years for my current employer.
If our loan officer knew all of this, had us give documentation for some of it, and an LOE for my bankruptcy just in case, ahead of time, what is the chance any of this might jump up randomly and cause a denial? Or would there be conditions?
I'm just trying to prepare myself for the various outcomes.
I do appreciate the answers! A lot!