The process (was "What are our odds?")

[Anonymous]

My husband and I are hoping to buy a house next spring (March to June-ish, currently renting via lease). What are our odds, in your opinions? Should I apply for the mortgage myself and add him after closing? We're currently planning on comparing USAA & NFCU for the loan.

Scores, from myFico:
Me - 661 / 701 / 670
Spouse - 644 / 629 / 635

Credit negs:
BK - filed 01/12, discharged 05/12 (joint)
Civil judgement - filed 10/08, satisfied (self)
Personal loan - 1st late 09/10, inc in BK (self)
Revolving - 1st late 07/10, inc in BK (spouse)
Revolving - 1st late 07/10, inc in BK (spouse)
Hard inquiries - 6 self, 5 spouse

Credit pos:
Auto loan - Open 01/02/Close 03/05, Paid as agreed (self only)

Current debt:
2 revolving accounts - $1,100 limit, usage $100. Monthly min. $30 (self, spouse is AU)
2 revolving accounts - $7,000 limit, usage $460. Monthly min. $50 (spouse, I'm an AU)
1 revolving account - $8,000 limit, usage $1,550. Monthly min. $75 (joint)
1 personal loan - $300 borrowed. $150 remaining. Monthly $53. Will be paid in full 12/14. (self)

Income: (self only, 4 years at current FT job, spouse is SAHD)
2013 employment - $40,473
2014 employment - $41,600 (estimated)
VA income - $1,571

Savings:
Set aside for emergencies - $1000
Set aside for home purchase - $1500
Expect to save additional $1000 prior to end of year, plus tax refund and possible gift from grandparents.
IRA - $4,700 (self)
401(a) $1,700 (spouse, rolling over to NFCU IRA)

Location:
Clallam county, WA.

Property:
Single family. Must meet VA minimums.

Value: $125,000 max

Occupancy: Primary residence

Transaction Type: 1st time buyer. Will be a 30-fixed VA mortgage, not liable for VA funding fee.

[Anonymous]

bump

[ShanetheMortgageMan]

Debt to income ratio should be fine for the sales price you are seeking.

You didn't mention when you opened of your current accounts, but if you'll have at least 12 months of re-established credit then your credit should be in good shape too.  The reserves you have in the IRA, 401(a) and checking/savings will help you get approved too.

You'll probably have better luck with USAA rather than NFCU, as NFCU can be pretty particular when it comes to credit.

[Anonymous]

Oldest CC, post BK just turned 2 in August, so that's good then.

[Anonymous]

Might as well use this to journal everything.

Our home buying journey started with, of all things, losing a job. It's the old "for the want of a nail the kingdom was lost" kind of thing.

Losing my job in Southern California led us to moving in, temporarily, with my parents, in rural Washington. Losing my job also led us to filing bankruptcy, as debts we had been making payments on with ease suddenly became obstacles to feeding and housing our family.

So, timeline:

04/2009 – Lost job (happened to be 5 months pregnant too). Lived on savings while looking for work. Too proud to apply for SNAP or TANF, but did get Medicaid for pregnancy.

01/2010 – Moved in with parents. At their urging, applied for, and received, SNAP.

06/2010 – Found much lower paying job, but just barely covered living costs in new area.

09/2010 - First pay raise... off of SNAP.
2011 – Kept trying to find a way to pay old debts.

01/2012 – Gave in and filed Chapter 7 (really should have done this sooner… but social stigma is powerful stuff).

08/2012 – Started rebuilding credit (scores in the high 400s). Received 1st CC (post BK for husband. Ever for me)

09/2013 – 2nd CC approval

10/2013 – 3rd CC approval

11/2013 – 4th CC approval

01/2014 – Looked into estimated costs of purchasing home in this area and what we could afford monthly (Nail = Kingdom moment. Would NOT be possible in SoCal)

02/2014 – Really started digging deep to build savings

04/2014 – Opened accounts with NFCU. Started list of needs vs. wants in a home.

06/2014 – Opened small personal loan (me)

07/2014 – 5th CC and first with non–toy initial limit

09/2014 – 6th CC & small share secured loan (husband)

10/2014 – Entered the hardest phase.. or at least it feels like it at the moment... Stop all new credit activity. "Enter the garden". Scores now in the mid-600s to low-700s. 

Next up... just keep an eye on the market. Keep saving and in mid-late March start talking to NFCU & USAA about starting the actual mortgage process and doing more than browsing listings.

[Anonymous]

Very difficult waiting these last couple of months. I'm ready to just go go go.

Patience though. Two more full months should see le husband's scores climb that ever bit higher into lower interest rate territory. (all our creditors report at the end of the month).

But ugh! Waiting is hard! 

[Anonymous]

Scores, from myFico:
Me - 675 / 714 / 682
Spouse - 663 / 660 / 663

Credit negs:
BK - filed 01/12, discharged 05/12 (joint)
Civil judgement - filed 10/08, satisfied (self)
Personal loan - 1st late 09/10, inc in BK (self)
Revolving - 1st late 07/10, inc in BK (spouse)
Revolving - 1st late 07/10, inc in BK (spouse)
Hard inquiries - 8 self, 6 spouse

Credit pos:

Auto loan - Open 01/02/Close 03/05, Paid as agreed (self only)

1 personal loan - Open 06/20/14. PIF 01/03/15, not reporting as such yet. (self)

Current debt:
3 revolving accounts - $4,550 limit, usage $200. Monthly min. $50 (self, spouse is AU)
2 revolving accounts - $9,000 limit, usage $300. Monthly min. $25 (spouse, I'm an AU)
1 revolving account - $8,000 limit, usage $1,300. Monthly min. $25 (joint)
1 personal secured loan - $300 borrowed. $149 remaining. Monthly $50. Will be paid in full 04/01/15 (spouse)

Income: (self only, 4.5 years at current FT job, spouse is SAHD)

2013 employment - $40,473
2014 employment - $42,043
VA income - $1,598

Savings:
Set aside for emergencies - $1000
Set aside for home purchase - $2000
Plus estimated $3000 tax refund
IRA - $5,100 (self)
IRA - $1,800 (spouse) 

[Anonymous]

Score update, since we can now get mortgage scores for EQ & EX.

I've got a 680/ TU / 700.

Husband is 690/ TU / 678

... and I haven't optimized our scores yet. 

So we now know we're looking at midscores right around 680, at least. TU could pop us up a bit. They're my high score in 08... but the husband's low score, by a smidge.

[frugalQ]

it's great to read a post from someone who's able to take advantage of myfico's decision to offer mortgage scores!  just great cause you know pretty much exactly where you are.

good luck!!

[Anonymous]

People tend to be chatty when they're buying a new home. They get REALLY enthusiastic when they learn that you're hoping to buy soon too.

But... the look on their face when you tell them your max limit is less than 1/2 the area's average home price... PRICELESS!!

I've seen this look a dozen times in the last few months.

No, we don't need a gazillion square feet.
Yes, our girls can share a bedroom.
No, we don't need up to date everything (I have tools and know how to use them.... and I detest stainless steel appliances, for myself. You're welcome to them).
Yes, there are actually homes for sale in the area in our price range.

First week of March is when we're applying for pre-approval.... I'm getting so antsy!