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Next Steps to Optimize our Approval?

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webs0082
Valued Member

Next Steps to Optimize our Approval?

My husband and I have recently taken some steps to put ourselves in the best position possible to get approved for the amount we want. My credit is worse than my husband's, so we recently paid down my credit cards to 0, except one card that's at 9% utilization. My FICO 8 score jumped to 660 (from 640) after 2 of the cards reported, just waiting on the jump from the other 2 to hopfully put me over 680. My husband's cards are around a 75% utilization, but his scores are in the low 700s. We are going to pull our mortgage scores from My Fico next month, after my cards have reported their new balances.

 

What should we focus on next? Together we make about $102K/year before bonuses- roughly $5200/month net. Our current mortgage + association is $1107/month, payments on CC debt and my student loan are roughly $935/month. I know the other big factors besides credit score are DTI and income- how do we look? What else can we do? We are hoping to spend around $300K-$325K on a home.

 

Thanks!

Message 1 of 8
7 REPLIES 7
frugalQ
Valued Contributor

Re: Next Steps to Optimize our Approval?

i'm assuming that you've addressed any derogatory items on your credit report. 

 

do you own the home you live in now? are you planning to keep it or sell it?  if you are planning to sell it as a contingency to buying another house, this will probably be your next thing to tackle.

 

to men, it seems like you will be good to go.  good luck!!!

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Message 2 of 8
webs0082
Valued Member

Re: Next Steps to Optimize our Approval?

My husband owns the home we live in now- I'm not on the mortgage. We do want to sell it. We've discussed putting it on the market as soon as possible, so we could possibly sell it before purchasing a new home, so we wouldn't have to make a contingent offer, and we could use that money for a down payment. We have the option to stay with family for a few weeks if necessary.

 

SO our next steps should be- continue paying down my husband's CC debt, and work on listing our house? I get so anxious thinking I should be doing more!

Message 3 of 8
frugalQ
Valued Contributor

Re: Next Steps to Optimize our Approval?

If you already have the money saved up to pay closing cost and downpayment, you would not HAVE to sell your current home.

BamaGuy, who's a regular on this forum, is also buying a house and owns his current home outright (no mortgage). He can probably give you specifics about his situation.
AmEx Green NPSL | Amex BCP 16K | Citi Simplicity 10k | Discover IT 9K | Chase Slate 7.5K | Amex Hilton HHonors Surpass 7K | Capital One QuickSilver 6K | Home Depot 5k | Chase Freedom 4.5K | LOC 2.5K
Message 4 of 8
StartingOver10
Moderator Emerita

Re: Next Steps to Optimize our Approval?


@&&&frugalQ wrote:
If you already have the money saved up to pay closing cost and downpayment, you would not HAVE to sell your current home.

BamaGuy, who's a regular on this forum, is also buying a house and owns his current home outright (no mortgage). He can probably give you specifics about his situation.

^^^Maybe. Depends on their DTI.  The OPs husband still pays a mortgage on the current residence. They would have to qualify with this payment plus the new payment if the current residence is not sold yet.

Message 5 of 8
frugalQ
Valued Contributor

Re: Next Steps to Optimize our Approval?

I believe I posted that reply on the wrong thread. Either that or I had a serious lapse in brain activity.

Sorry OP!!
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Message 6 of 8
StartingOver10
Moderator Emerita

Re: Next Steps to Optimize our Approval?

Lol its easy to do Smiley Wink
Message 7 of 8
Anonymous
Not applicable

Re: Next Steps to Optimize our Approval?


@webs0082 wrote:

My husband and I have recently taken some steps to put ourselves in the best position possible to get approved for the amount we want. My credit is worse than my husband's, so we recently paid down my credit cards to 0, except one card that's at 9% utilization. My FICO 8 score jumped to 660 (from 640) after 2 of the cards reported, just waiting on the jump from the other 2 to hopfully put me over 680. My husband's cards are around a 75% utilization, but his scores are in the low 700s. We are going to pull our mortgage scores from My Fico next month, after my cards have reported their new balances.

 

What should we focus on next? Together we make about $102K/year before bonuses- roughly $5200/month net. Our current mortgage + association is $1107/month, payments on CC debt and my student loan are roughly $935/month. I know the other big factors besides credit score are DTI and income- how do we look? What else can we do? We are hoping to spend around $300K-$325K on a home.

 

Thanks!


You should check your FICO 4 scores. FICO 8 isn't used for mortgages.

Message 8 of 8
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