@LB2484 wrote:
I have been working on my credit for last two years. Reading and learning from this forum and learned a lot about credit.
What are my chances on mortgage approval on a 345,000 home?
Scores from this site ( these are mortgage scores)
EQ 668
EX 686
TU 696
I have no lates in 3 years on my credit
Car loan with payment of 589
Credit cards of 200 month
Installment loan of 340 month
Salary is 78,000 with 14,000bonus ( I have received this bonus amount two years in a row)
I will have 78,000 for down payment and closing
Do we look good for an approval?
Obviously it depends on a few other factors such as other associated monthly expenses, but based on this information alone, I think you're pretty close. Your credit score is on the lower side which increases the monthly payment, which is going to hurt because your DTI will be really high. Keep in mind that your bonus will likely not count.
If you can use some of the available money to pay off the credit card balances, that would help a lot. You only need 69k to put down, and the closing costs can be paid by the lender in exchange for a slightly higher interest rate.
@LB2484 wrote:
Thanks....credit card debt is capital one 4500 limit with 2100 owed and Discover 14,000 limit with 2300 owed I have Lowes card at 0, JC Penney at 0 and BOA with 2,000 limit and 0 balance
I don't have any other debt.
I could pay the cards so that only one shows a small balance. Disappointed to hear that I can't claim my bonus, I thought if you received it fir two years lender will allow
Also I plan on going conventional
Definitely pay those balances off except for a few dollars on one card to maximize your score and minimize your current DTI.
Some lenders may consider your bonus. When it comes time to shop for a lender, definitely branch out. But even without the bonus, your income should be sufficient after you pay off the majority of the total credit card balance.
