Trying to Qualify for Mortgage...Just Getting Started

[los_west]

1. Credit.    Current score for me: EQ (MyFico) 690, Credit Union Lender Pull 03/14  734.  2 old charge-offs, $0 balance.  Due to fall off 07/2014 & 09/2014.  No collections, BK, judgements or public records.  No late payments for the last 4 years.  Have had new accounts posted within the past year, so have about 12 inquiries on TU and about 9 on EQ.   Not sure about husband's credit.
2. Income.  Gross income $58000 for me.  Husband is self employed, and makes about $65000.  We own rental properties, generating about $2500 a month.
3. Source of income.  I work full time for local government.  Has been in present job since 2009, and been with the organization continuiously since 1996.  Husband has owned his business since 1996.
4. Monthly debt payments.  I have at 16,000 personal loan (payments of $523/mo), and 2 car loans (423 for 1, 500 for the other).  I have my CC utility down to <10%, so CC payments may be about $100/mo.
5. Assets/Reserves.  I have about $2500 in savings.  Husband has about 15000.  We own 4 small rental properties in the suburbs...does that count as assets?
6. Location.  Los Angeles County, California.
7. Property.  Looking for single family home.  
8. Value.  Looking for something around 300,000 but definitely not more than 350,000. 
9. Occupancy.  Primary residence
10. Transaction Type.  Looking to purchase.  A 30 year loan
11. Other concerns:  Currently trying to remove dispute comments from my credit reports.  My score just nose dived 14 points.

What do I need to work on?  I haven't put in an app yet because I am afraid the LO would laugh me out the door.  I want to get all our ducks in a row before submitting the mortgage app.

[los_west]

1. Credit.    Current score for me: EQ (MyFico) 690, Credit Union Lender Pull 03/14  734.  2 old charge-offs, $0 balance.  Due to fall off 07/2014 & 09/2014.  No collections, BK, judgements or public records.  No late payments for the last 4 years.  Have had new accounts posted within the past year, so have about 12 inquiries on TU and about 9 on EQ.   Not sure about husband's credit.
2. Income.  Gross income $58000 for me.  Husband is self employed, and makes about $65000.  We own rental properties, generating about $2500 a month.
3. Source of income.  I work full time for local government.  Has been in present job since 2009, and been with the organization continuiously since 1996.  Husband has owned his business since 1996.
4. Monthly debt payments.  I have at 16,000 personal loan (payments of $523/mo), and 2 car loans (423 for 1, 500 for the other).  I have my CC utility down to <10%, so CC payments may be about $100/mo.
5. Assets/Reserves.  I have about $2500 in savings.  Husband has about 15000.  We own 4 small rental properties in the suburbs...does that count as assets?
6. Location.  Los Angeles County, California.
7. Property.  Looking for single family home.  
8. Value.  Looking for something around 300,000 but definitely not more than 350,000. 
9. Occupancy.  Primary residence
10. Transaction Type.  Looking to purchase.  A 30 year loan
11. Other concerns:  Currently trying to remove dispute comments from my credit reports.  My score just nose dived 14 points.

What do I need to work on?  I haven't put in an app yet because I am afraid the LO would laugh me out the door.  I want to get all our ducks in a row before submitting the mortgage app.