We will qualify

[ClatterinDiesel]

My SO and I have found a house we wish to purchase, however I still own my home and will be putting it on the market this week. However, we want to make an offer on a different property. We want to be pre approved prior to the offer, but also don't want to waste a credit inquiry for nothing. So I'll be using your advice to gauge our next move.

1. Income- She is a veterinarian with 7 months employment at a clinic and makes $60k a year salary, plus another 50-60k on commission. I am a firefighter that has been with same employer for 9.5 years and make $48k a year.

2. Debt- We both own our cars outright. She has 1 credit card with a $0 balance, and student loan payments of about $700 a month. No other debt. I have a $285 Polaris Ranger payment ( selling Tomorrow, so that will be gone), 2 personal loans totaling $310 a month. 4 credit cards with 97% utilization totaling $5000 CL across the 4. I'll be paying down $3000 of which with proceeds from Ranger sale. And I have an $888 mortgage.

3. Credit- I have a 649 equifax and a 670 TU. So one of those is my middle. I have had 4 years of satisfactory mortgage payments. And my past 5 years of credit has been squeaky clean. I have a 30 day late from sometime in 09 showing for a truck payment. A couple collections that should fall off soon and all paid in full. Her credit score is a mystery. But she says she has no derogs.

4. House is a 10 acre, 2008 4/3 2900 square foot site built home located in Levy County Florida. Asking piece of $280k. We want to get it for $230k or less. Listing Realtor said to offer $210.

We have about $12k in savings and 2-3k in checking. I'm also selling a truck for $6000 and the ranger I mentioned above. My deferred comp plan has $30000 in it.


I feel like I am forgetting some info so I am sorry. My mortgage is an FHA. If it doesn't sell I will rent it, but without it showing on my ya returns I doubt it will matter to a bank.

[Anonymous]

As a retired firefighter let me weigh in.  I'm also in the mortgage process (building) so been through the ringer already.

To answer the question.  If applied today I'd say you're in.  Maybe not the best of terms, but you're good.  

-Things could be better on your end if you waited a year but you say you want this house so lets go from here.

-Good income.  Yours especially because its very stable.  Lenders like that.  Firefighters don't get layed off or downsized.  Unless its Detroit.  She might have to write a letter on her commissions and how it works.

-Gather up pay stubs, W2s, 1040s last 3 years.  They're gonna wanna look at that stuff.  I also had to give DNA sample to verify who I was.  ( just kidding, but you do feel like your getting a invasive medical exam, but don'td worry about it, they do it to everybody buyin a house these days.)

- do a search here on front end and back end debt ratios.   Do NOT do a "back end" search on google, DO it in house on Myfico, if you don't, don't blame us on what ya find.  Lenders like to tawk about ratios and numbers.   Kinda like how we like to talk about fires,wrecks, and other rescues, we've been too (war stories).  "I once got a guy approved with  a 51% back end ratio," its what they do.  So you need to know what they're talking about.  Ask them to figure you're "back end" with the current house payment.  This way if home doesn't sell you have a plan b.

-I find it funny the word "back end" is used so much in the mortgage business.  LOL

-You will prolly have FHA and conventional loan options.  Again search those topics.  Short version FHA will float the note with 3.5 down.  Take a look at that.  If you don't sell you house you're in for about 8k down (230k mortgage). That gives yoiu money to buy stuff associated with a new home.  You'll want a new flat screen, and Laz boy with drink cup in the arm for sure in new house.

-Once home sells you can replace the toys you had to sell off.   A joker with 10 acres is gonna want a new truck and 4 wheeler at least. Tell the SO you need 4 wheeler to haul firewood and plants around, she doesn't need to know its mostly for riding your buds around the farm and stuff.  Might buy a new fire pit so the guys from work can hang out with ya on y'alls off days.  So not using ALL your 12 for DP has its good points.

-If you go FHA route, you can come back and refi later.  

-the house is listed for 280 but y'all are thinking offering 210?? House been on the market awhile?

[#3]

As a retired firefighter let me weigh in.  I'm also in the mortgage process (building) so been through the ringer already.

[#4]

To answer the question.  If applied today I'd say you're in.  Maybe not the best of terms, but you're good.  

[#5]

-Things could be better on your end if you waited a year but you say you want this house so lets go from here.

[#6]

-Good income.  Yours especially because its very stable.  Lenders like that.  Firefighters don't get layed off or downsized.  Unless its Detroit.  She might have to write a letter on her commissions and how it works.

[#7]

-Gather up pay stubs, W2s, 1040s last 3 years.  They're gonna wanna look at that stuff.  I also had to give DNA sample to verify who I was.  ( just kidding, but you do feel like your getting a invasive medical exam, but don'td worry about it, they do it to everybody buyin a house these days.)

[#8]

- do a search here on front end and back end debt ratios.   Do NOT do a "back end" search on google, DO it in house on Myfico, if you don't, don't blame us on what ya find.  Lenders like to tawk about ratios and numbers.   Kinda like how we like to talk about fires,wrecks, and other rescues, we've been too (war stories).  "I once got a guy approved with  a 51% back end ratio," its what they do.  So you need to know what they're talking about.  Ask them to figure you're "back end" with the current house payment.  This way if home doesn't sell you have a plan b.

[#9]

-I find it funny the word "back end" is used so much in the mortgage business.  LOL

[#10]

-You will prolly have FHA and conventional loan options.  Again search those topics.  Short version FHA will float the note with 3.5 down.  Take a look at that.  If you don't sell you house you're in for about 8k down (230k mortgage). That gives yoiu money to buy stuff associated with a new home.  You'll want a new flat screen, and Laz boy with drink cup in the arm for sure in new house.

[#11]

-Once home sells you can replace the toys you had to sell off.   A joker with 10 acres is gonna want a new truck and 4 wheeler at least. Tell the SO you need 4 wheeler to haul firewood and plants around, she doesn't need to know its mostly for riding your buds around the farm and stuff.  Might buy a new fire pit so the guys from work can hang out with ya on y'alls off days.  So not using ALL your 12 for DP has its good points.

[#12]

-If you go FHA route, you can come back and refi later.  

[#13]

-the house is listed for 280 but y'all are thinking offering 210?? House been on the market awhile?

[ClatterinDiesel]

Thank you for the reply. I'm hoping you're right.

Until I sell my house, I don't think I will have an FHA option, due to my current mortgage is an FHA. So hopefully we can qualify for a 5% conventional.

The house has been on market for 4 months and listed at $280k. We found it on Zillow for $249 which what peaked our interest, but apparently that price was incorrect. The owner just sold the adjoining rear 15 acres for a nice price, so this house is all he has left and the realtor feels that if we offer $210, we could work our way to the $230k. We've chosen $230k because that mortgage, after our down payment, will be less than her rent (2 months left on lease) and my current mortgage combined. So we would be comfortable with the payment. That includes the taxes, PMI, and insurance in the payment. I was using a 4.125% for 30 years in my calculations as that is what my current interest rate is.

I will most certainly get my toys back once the house is bought, but it is exactly what were looking for in the location we want. Not to mention the house is absolutely gorgeous inside and out.

[ClatterinDiesel]

Oops, I hit post on accident.

Anyways, thank you for your feedback and positive vibes. I'm excited, but I don't want to get too excited. I'd hate to walk into the loan office and be told no, I'd rather hear it here than to waste an inquiry.

We've discussed letting my house soak on the market for 30 days with an aggressive sellin price and see what happens prior to heading to a mortgage broker for the house we want. If nothing happens, then explore options of Renting it or deciding to let it stay on market another 30 days.

[StartingOver10]

Check some lenders in your area. The two red flags I see are: 1) the size of the land is 10 acres and many of the loan programs/lenders won't loan on a land size larger than 5 acres. Second potential red flag is the amount of time your wife has on the job, 7 months.  Did she just graduate? If so, then that will be a non-issue.

[ClatterinDiesel]

Yes. She just graduated in April. And Started in June.

So how do people get loans on properties over 5 acres? Im pretty sure we will need to go conventional as I already have an FHA loan.

[StartingOver10]

Try a community or regional bank in your area.  Try a CU. Also try https://www.farmbureaubank.com/

Make sure you find out first about the maximum land size that the lender will finance.

[ClatterinDiesel]

Thank you for that information. I had no idea about that rule.

[ClatterinDiesel]

Ok, so after reading on here that Equifax 04 is what mortgage lenders typically use, and that the equifax site is only place I can get that particular score. I purchased the ScorePower thing and it is showing me at a 656. So that is better than I had though score wise. Am I correct in believing this is the score lenders will use/see?

[Martis]

Yes, that is the score that the lenders use. I did a pre approval the other day with Quicken loans and the Equifax score from them was exactly what I got with Equifax score power. Don't forget that they will pull all 3 scores and they use the middle one. In my case Equifax was the lowest between the 3.