Mortgage Loans

[Etno]

Hello everyone,

I am so thankful for this forum - we have improved our scores by 100 and 150 points in two years! We still have some work to do, but we applied for a mortgage pre-approval with a broker and we got some good news! I know that's just the first step in a long process, but the scores they gave us were at least 50 points above what we thought they were (above myfico), so that in itself was a huge surprise! We just have to get on a payment plan for one collection but that was the only negative they came back with, and other than that she feels we are good to go.

We are so excited to even be in a positive place with our credit, thanks so much to everyone who has helped us along the way!! 

On a side note, she approved us for up to 4 times our income. I don't plan on going this high, but is that normal now? Is that because of the low interest rates?

[JM-AM]

Yes the lower rates make your income afford more debt.

Thats great news congrats and have fun home shopping!!

[MovingForward_2012]

Congrats! And yes, four times your income is normal now. That is why so many people want to buy now because they get more house for less! :-) I was approved for 3.75 times my income and I am buying at 3.6 times my income. I have one unpaid collection and it doesn't have to be paid because my mid fico is well above the min. What is your score now and what is the collection for and for how much? You may be able to find a lender that won't require a payment plan which would put money back in your pocket. Usually payment plans are mandatory for judgements.

[Etno]

Our score is 677, we are going FHA. The unpaid collection is $4,5XX. This is the first lender we have gone through. I also have the opportunity to go through Navy Federal so I may try them as well now that I know it's actually a possibility. Do you mind me asking how much your collection was for? 

[MovingForward_2012]

My collection is for $1100. Old Comcast bill from 2007 that wasn't added to my credit report until 2009. I would definitely try NFCU to see if their offer is better.