Qualification Advice - Will we qualify?

[Anonymous]

My significant other and I are looking to purchase a home around June/July 2019, we will visit with a lender for preapproval, but can someone help with pointers for our situation?

Would we qualify for a home costing around $330,000 -$360,000?

Credit Scores:
                   Mine:   Equifax 689
                                Transunion 652

Significant Other:  Equifax 648
                                Transunion 641

Credit Negatives:
Mine: Diversified Consultants Comcast $181 11/15- PAID and Closed

Significant:
Derogatory:  7/18/13 Astra Service $1142
                        7/11/15 Enhanced Recovery $383 (Only on TU report)

                        Student Federal Loan 10 Closed accounts from 4/11/14
                        Went into rehabilitation and in good standing since 3/10/16

                        Honda Finance: 6 Lates (90-119 Days) in 2013 – Closed account on 12/16/2013
                        2 years of credit history.
                        On 3 accounts as an authorized user.
                         $1000/$3500
                         $1500/6500

Gross Income:
Mine: 55K + 15k annual cash bonus (Salary) 7 years at company
SO: 70K (Salary+ Bonus) 11 years at company

Debt:
NFCU: 7000/20000
Cap1 QS: 1500/6500
Cap1 Ven: 1000/3500
Discover: 2000/6500
Paypal: 400/5000
Citibank: 2000/2400
Cap1 Secure: 0/500
Bestbuy: 700/1000

Student Loans:
Mine: $440 monthly - $60,000
SO:      $370 monthly - $55,000

Auto Loan: $390 monthly – Payoff $13,100

We plan to pay all our credit cards and derogatories by 10/18

For our auto loan – we would like to purchase a home around 6/19, hoping it will fall in grace period where it wont be accounted for – 9 month mark (can anyone advise if this is true?)

Savings: Will have at least 70k when time to purchase.
401K: Mine: $8500
              SO: $4200

Location: Houston, TX
                  Single Family Home/ Primary Residence/ First Time Home Buyer
                  Home Price: $330,000 - $360,000

[DollyLama]

With the lack of EX scores, I think what you do have are possible FICO 8 scores? You need your middle mortgage score, a different scoring model from FICO 8. Lenders typically pull a tri-merge on all 3, toss out highest and lowest and go with the "middle" score. Of a joint applicant, they will use the lower of the two applicants "middle mortgage" score. 

I would suggest to get the utilization on CCs down now, and not 4 months after you plan on purchasing a home. This will get both you and SO a bump if you have low utilization, ideally all CCs reporting zero with exception of 1 bank card, and from that bank card only <8.9% of it's total tradeline to report a balance. You seem to have credit mix, bank cards, I think the AU cards may be hurting you with the balances being carried, and lender may ask you to be removed (unless it's a spouse). YMMV. The biggest hurdle is the derogs, getting bills paid down can be good with someone with good disposable income. However the lates, charge offs are severely impacting your scores. 

You can get your mortgage scores here, along with bankcard scores, auto scores, FiCO 8 scores and your reports. Might be worth it now to see where you stand, or at least if you can pay down the debt a great deal, to see where you might stand when you attempt a pre-approval. Good luck! 

[Anonymous]

I've approved people with a lot worse credit profile than that. You are on the right track!

[Anonymous]

Do you feel that transaction price is within reach? or should we look for less?

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@Anonymouswrote:

I've approved people with a lot worse credit profile than that. You are on the right track!

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