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Regular Contributor
localuser
Posts: 140
Registered: ‎09-07-2012
0

Starting my journey

[ Edited ]

I would like to purchase a 250K house in the next 2 years.  Here are our stats as of todays report

Me         Credit Score 675 (this is a medium score)

2 - Collections both under $100 - No luck on GW

1 - CO off for Macys – No luck with GW 30 day late x 4 L

8 - Open Revolving accounts.  Two of them have balances but @ 10%

I am an AU on two of her cards

Car is paid off with no late payment

AAoA = 2 years 2 months

Inquires = 3

 

Wife      Credit Score = 765 (this is a medium score)

No collections and no lates

6 Revolving accounts – No lates

No car payment

AAoA = 3 years

 

She stays at home with the baby and I bring home 1300 every 2 weeks

5K in savings (not including 401k)  and attempting to save 800/month starting in March

Shooting for $30,000 down payment

Do you guys think we would have any issues with a really good loan for a house priced at or under 250K?  Neither of us have our money in a Credit Union but I do work for a company that has a bank.  I also want to stash an extra 10K if possible for renovations, should I bring this up?   Will that question ever be brought up?

 

I am aware that only time will fix my credit score and two years ago it was 550 and I barely got a Secured Card from Cap1 :smileyhappy:

 

 

Cap1Secured $500 | Chase Slate $700 | Amazon Store $3000 | Discover IT $5000 | Lowe's $5000 | AmEx BCE $13500
January 2014 (myFICOs): Equifax 675 ^ TransUnion 661 Experian 723 ^
Goal: Never miss a payment | Last App: 11/21/2013
Frequent Contributor
grassfeeder
Posts: 348
Registered: ‎03-01-2012
0

Re: Starting my journey

banks are not the enemy.  find yourself a good local credit union and start building your relationship with them immediately.

 

you should even be able to open up multiple savings accounts so you can find one strictly for your downpayment savings efforts.

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Valued Contributor
BrianB_The_Loan_Professor
Posts: 1,381
Registered: ‎07-29-2008
0

Re: Starting my journey

Looks like a solid plan  the only concrn I see is your debt to income

2600 a month but what is your gross a month

how much are all of your minimum payments towards credit every month?

 

B

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Brian B The Loan Professor
Mortgage Banker Lending in all 50 states -
Regular Contributor
localuser
Posts: 140
Registered: ‎09-07-2012
0

Re: Starting my journey

We have a Money Market account just for savings.  What is the purpose of a credit union?  Like I stated, I work for a company who owns their own bank.

Cap1Secured $500 | Chase Slate $700 | Amazon Store $3000 | Discover IT $5000 | Lowe's $5000 | AmEx BCE $13500
January 2014 (myFICOs): Equifax 675 ^ TransUnion 661 Experian 723 ^
Goal: Never miss a payment | Last App: 11/21/2013
Super Contributor
ShanetheMortgageMan
Posts: 8,174
Registered: ‎09-28-2007
0

Re: Starting my journey

What is your gross monthly/bi-weekly/annual income? 

 

If it's $1,300 every 2 weeks ($1,300 x 26 = $33,800 / 12 = $2,816.67/mo) then a $250k sales price with 30% down will make your debt to income ratio too high - around 51% (there are two portions of the debt to income (DTI) ratio, your "housing" ratio which is the percentage of your gross income the housing payment is, and the "total" ratio which is when you add in any consumer payments like a car payment, student loan payment, credit card payments, etc. + the housing payment ... the max for the housing is 45% & total debt ratio is 45-56% depending on the loan program you are qualifying for).  But since you said you "bring home" $1,300 every 2 weeks, I suspect you listed your net income after taxes, rather than your gross income before taxes.  Gross income is what qualifies for the mortgage.

 


localuser wrote: I also want to stash an extra 10K if possible for renovations, should I bring this up?   Will that question ever be brought up?

What do you mean by you want to "stash" an extra $10k for renovations?  Meaning you want to stash cash "under the mattress" or you want to get an additional $10k from the mortgage lender for the use of renovations?

Regular Contributor
localuser
Posts: 140
Registered: ‎09-07-2012
0

Re: Starting my journey

Gross is 53K/yr | $4416.67 per month | $2208 a week

Discover ~ 2700 but most of this is from Christmas and I usually pay about 1200 a month

Amex is around $300 but I am paying that off tonight because my 61st day is 1/21 :smileyhappy: Fingers crossed for my 3x

Cap1Secured $500 | Chase Slate $700 | Amazon Store $3000 | Discover IT $5000 | Lowe's $5000 | AmEx BCE $13500
January 2014 (myFICOs): Equifax 675 ^ TransUnion 661 Experian 723 ^
Goal: Never miss a payment | Last App: 11/21/2013
Regular Contributor
localuser
Posts: 140
Registered: ‎09-07-2012
0

Re: Starting my journey

I want to stash an extra 10K in the money market savings account and not use it towards the purchase.  Just for renovations, new couch and TV

Cap1Secured $500 | Chase Slate $700 | Amazon Store $3000 | Discover IT $5000 | Lowe's $5000 | AmEx BCE $13500
January 2014 (myFICOs): Equifax 675 ^ TransUnion 661 Experian 723 ^
Goal: Never miss a payment | Last App: 11/21/2013
Valued Contributor
BrianB_The_Loan_Professor
Posts: 1,381
Registered: ‎07-29-2008
0

Re: Starting my journey

at 53k a year that gives you roughly 1900 a month towards all debt including housing (for qualifying)

Your mortgage will take up most of this - not having deb and putting a large down payment will help

 

It will be close - you will need to have everything run through automated underwriting to find out if it will acceot your ratios- 

Brian

 

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Brian B The Loan Professor
Mortgage Banker Lending in all 50 states -
Regular Contributor
localuser
Posts: 140
Registered: ‎09-07-2012
0

Re: Starting my journey

So our combined credit scores are enough to get us a good loan.  I just need a raise :smileyhappy:  I'll let my boss know you think thats best for me.

I am looking at this long term and thankfully don't need something tomorrow. 

Cap1Secured $500 | Chase Slate $700 | Amazon Store $3000 | Discover IT $5000 | Lowe's $5000 | AmEx BCE $13500
January 2014 (myFICOs): Equifax 675 ^ TransUnion 661 Experian 723 ^
Goal: Never miss a payment | Last App: 11/21/2013
Super Contributor
ShanetheMortgageMan
Posts: 8,174
Registered: ‎09-28-2007
0

Re: Starting my journey

[ Edited ]

It sounds like you'll have your debt knocked out in a few months.  At $53k/year of income & no debt payments then it appears your income should have no problem qualifying for a $250k sales price with a $30k down payment.  People have money in various accounts, so no it wouldn't look fishy to have a separate $10k in a money market account saved up for future renovations you may want to do to the property after you purchase it.  Lenders usually want you to have some additional savings (called "reserves") after you close on a home, so it'll look very good in the eyes of the lender.


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