We want a mortgage! Will we qualify?

[Anonymous]

1. Mortgage Credit Scores: 
I'm sorry,  these are fico 8's, I'm waiting for everything to update This week before I  check mortgage scores.
Mine: Equifax: 604, Transunion: 637 Experian: 625
SO: EX: 600 EQ:580 TU:577

2. Credit Negatives:
 ME: pmab llc medical collection $1182 unpaid Opened 06/15 reports monthly to all 3 CRA'S
ERC-Sprint  418$ unpaid, opened 10/14 currently disputing EQ deleted waiting for EX & TU to process dispute reports monthly
BOA charge off 260$ DOFD 06/11, got an EE last week from TU( already deleted from CR), EX says set up to delete 03/23/18 EQ won't do EE
SO: 80$ collection from Duke Energy, opened 08/14,
1 30 day late payment from his TD bank cc from 09/17 ( I'm pissed i wasn't aware of this) I'm so scared we won't get approved because of this late payment.  I'm currently working on the Saturation method, first round of GW'S will go out Monday.

3. Gross Income. 
ME: 25K SO: 25K

4. Source of income.  Where is the income coming from? List each source.
CHEESE consultant and he is a chef , both hourly

5. Monthly debt payments.
No debt except 25$ min payment on SO CC
Credit Cards: ME:  5 CC'S TOTAL CL 2701$ UTL currently 26% just paid off all except 1 under 9% should update this week on CR. AAOA 7 MNTHS
SO: 1 CC 500% 1 Au 701$  UTL: 22%
Should update next week
6. Employment (for those who are employed).
Type of employment: Both of us are W-2 employees.
How long: ME: 5 YRS same job, SO: 5 yrs same job
How long in the industry/career field?: me 5 yrs him 8-10 yrs

7. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).
Me: CHECKING & SAVINGS: Almost 6k
401k: 10k
SO: CHECKING & SAVINGS: almost 7k
401k: 11k
8. Location:  ASHEVILLE,  NC or surrounding area (Buncombe county)
9. Property Description:
I am looking at single family homes only. 3-4 bedrooms.
10. Property Value.
Purchase transaction: Price range 180K-225K
11. Occupancy.
Primary residence:
12. Transaction Type.  Purchase transaction. First time homebuyer
Hopefully that is enough info for someone to shed some light on our situation.  We have been rebuilding for the past year and thought we might be good to try for a mortgage by april, as long as we can above 640. We currently pay  almost 14k annually for rent (its hard,  we are broke)  and we want to put that money into a house.  Our lease is up in July, but we rent a house from my sister so if we had to postpone for a couple of months I'm sureit would be fine.  Thank you everyone!  Also, I refuse to apply before our scores are over 640, we need some downpayment assistance! Am I doing right by concentrating on that removal of that 30 day payment?

[Anonymous]

With scores in the 500s, there must be something more serious than 1 late payment. It will probably be a while before you're over 640.

[Anonymous]

That's the thing, other than 80$ collection from 2014, there's not! i think it's thin file. Had no TLs till I made him get a cc last year. Opened that 04/ 17 , and a couple months ago i added him to one of my cc, which was opened 10/2017( it backdated). Is it because he barely had any credit? I know 1 late payment can cost someone almost 100 points sometimes?

[Anonymous]

It's not just the 30 day late but the collections on your report that are hurting you also.

You mentioned you spend roughly 14k annually for rent and it's hard to do. A house in the price range of 185-225k would probably cost you more and I don't think you'd get approved for that much of a loan based on the income you stated.

[Anonymous]

Thanks for your input. It's so expensive to live in Asheville, that's how much a 3 bdrm will cost unless you find a doublewide somewhere. How much roughly will a 50k gross income approve you for? Granted our scores and reports were way better. Do you think I'll have to take care of the medical collection before approved? I know we will have to pay the 2 smaller collections, im working on that now. We are able to pay the 1400$ a month for rent no problem, it just doesn't leave us any room to save money each mnth. I figured a mortgage would cost around the same, but you say no, it'll be more?

[Anonymous]

I can’t speak to the credit as well, but I can say that I was just looking and a $170k house with a 4.7% and 3% was gonna run me about $1300 a month...that’s PITI, which is your loan, taxes and insurance. When you calculate your monthly house payment you need to include those.

Where I live, property taxes are high as heck, so I had to take that into account when setting my price limit.