Mortgage Loans

[soccer05]

My fiancée and I want to apply for a traditional loan together.  Below are the details and we are targeting a 3.5% interest rate.  Any thoughts on the situation below?

Scores mine - 720, 690, 720

Scores hers – 725, 700, 720

We have young credit since we have only been out of school for 3 years but we both have a joint credit card with our parents that they started for us when we started college so we have two 7 year credit accounts but our other main credit accounts are about 4 years old.

Income – gross for both of us is $101,000

Source – both of us are 100% salaried employees that have been with our companies for over 3 years each.  Paychecks are guaranteed to be the same every two weeks.

We both have car payments that total 650 dollars a month and will be paid off at the same time a little under 2 years from now.  No debt of any kind except for the cars.  We put all of our monthly expanses on our credit card but pay the balance in full ever month and have been doing that since we graduated so we haven’t carried a balance in a couple of years but we spend about 1,800 dollars a month so that shows up on our credit report and goes towards our credit to debt ratio so we have been using our debit cards lately for this reason.

Assets – $20,000 cash, $15,000 to put down

Texas – Fort Bend county

Single family home

230,000 price of house

Primary residence

We will be building this house

[seigex]

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soccer05 wrote:

My fiancée and I want to apply for a traditional loan together.  Below are the details and we are targeting a 3.5% interest rate.  Any thoughts on the situation below?

Scores mine - 720, 690, 720

Scores hers – 725, 700, 720

We have young credit since we have only been out of school for 3 years but we both have a joint credit card with our parents that they started for us when we started college so we have two 7 year credit accounts but our other main credit accounts are about 4 years old.

Income – gross for both of us is $101,000

Source – both of us are 100% salaried employees that have been with our companies for over 3 years each.  Paychecks are guaranteed to be the same every two weeks.

We both have car payments that total 650 dollars a month and will be paid off at the same time a little under 2 years from now.  No debt of any kind except for the cars.  We put all of our monthly expanses on our credit card but pay the balance in full ever month and have been doing that since we graduated so we haven’t carried a balance in a couple of years but we spend about 1,800 dollars a month so that shows up on our credit report and goes towards our credit to debt ratio so we have been using our debit cards lately for this reason.

Assets – $20,000 cash, $15,000 to put down

Texas – Fort Bend county

Single family home

230,000 price of house

Primary residence

We will be building this house

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From everything you're saying it looks great, your stats are better than mine and I was approved fwiw But without 20% down you won't be able to go conventional, so you'll have to look at FHA or USDA (USDA is the best if Fort Bend County is covered by USDA), so if that's the case you're more than qualified.

[soccer05]

A conventional loan with USAA requires a minimum of 5% down.  We have already called to confirm that we wont be denied if we don't put down 20%.

[AJC1987]

You appear to be in a great position to be approved. Both of your credit scores appear to be decent and you have reserves in the bank.  I think you will be good to go. Just be prepared to pay PMI since you are not putting 20% down.

[seigex]

I stand corrected... sounds like you are squared away..good luck!

[tooleman694]

You can do LPMI and skip PMI payments if you go conventional, some banks you can even do 3 percent down payment instead of 5.

[beb86]

Sounds like you have a clear path ahead of you.. Good luck!!