Pre-qualification questions

[Anonymous]

Fiance and I are going this week to get pre-qualified.  Her credit is better than mine (her middle score is 775, mine is 737). 

Whos credit will they use? 

No baddies in 6.5 years on either report.  4% util for her, 36% util for me. Weird circumstances-- i had to report 2 cards as stolen, which are being reported as $0 limit, and the newly issued cards havent been reported yet

Should I get my util to <10% before trying to be pre-qualified, or do you think we'll get the best rate as is?

Message Edited by andaheart on 12-07-2008 02:16 PM

[Anonymous]

They will use the lowest mid score between you, so probably yours. 

As far as getting the Utilization fixed prior to buying it makes no real difference.  The loan officer will only care about the DTI.

The main things they care about is:

debt to income ratio

job history

income amount (and that the income is reported and proveable)

No BK/foreclosure/repo.bad credit recently

Down paymnet amount

reserves

and FICO score

Assuming you have income to qualify, given the house you want and any other loans/credit card payment, pre-approval should be easy with your FICO scores.  The only other real big issues would be employment verification, verification of source for down payment, etc.

Once you get all this started and your FICO score goes up due to the corrected CC limits, you could always have them re-pull credit to see if you can get a better interest rate.

[Anonymous]

Ok.  No problems with income, but there may be a hitch with the downpayment.  The downpayment will be in the form of an inheritance which I will receive in the next several weeks.  Should we wait until the funds are in the bank before trying to be qualified?

[Anonymous]

It doesn;t matter as long as you know the money is forthcoming and there are not going to be any problems with that.

Expect the UW/LO to want docs pertaining to the inheritance as they have to source all funds for DP.

The only reason to wait is if you are not ready to get started.  If you know the inheritence will be avialable within the next 30 days, then ther should be no real problem getting pre-approved and getting started looking around.  I would not put a bid out on a place unless I was sure that money was good to go though.