I started cleaning up my credit and building my husband's credit a few years ago. Now that I've finally finished grad shcool, we'd like to buy a house. Neither of us have purchased a home before.
I'd like advice on whether or not we're good candidates to go for pre-approval with an FHA loan. It isn't that we're in a rush to buy this instant but if you guys say we could probably qualify now then I'll feel comfortable pre-approving whenever the time comes. Since I'll continue to pay on time and pay down debt, I don't expect to be any worse off later than I am now. I'm not concerned about our ability to make monthly payments on a mortgage of $180k or so. I'm just wondering if our credit is in good enough shape to qualify yet.
My debt-to-income ratio is at 19% without current rent and 27% with. It would be 33% with a new mortgage of $1300 or 36% with a payment of $1600. (I just grabbed two possible payment amounts out of the air for that lol) I wasn't sure if DTI includes current rent or expected mortgage so I ran it both ways. Our combined gross income is $115k.
Last time I checked my husband's sores, he was in the 730 area on all three. (Mainly because he had no credit when we married so I've ended up carrying most of the debt while carefully building his credit.)
My fico scores as of today are: TU 686 EQ 660 EX 657 My history is 12 years with no late payments or bad hits in 2 years. I have no BK or anything more serious than a total of 7 late payments that range from 2 years old to 9 years old. My overall CC Utilization is too high (67%) but I plan to drop it down to 40% next week. I know that's still high so I plan to work on getting it down to 9%. My other problem is that all of my student loans have entred repayment. (LOL, good times!) I don't have it right in front of me but I'd estimate my total SL to be approaching $60k.
Message Edited for an obscene amount of typos by mcdonee on 02-10-2009 12:48 PM
Message Edited by mcdonee on 02-10-2009 12:51 PM
