@mrpeabody wrote:So here is our situation.
My husband was relocated by his employer about 2 years ago. We sold our house in California, and now that we know the new area, we are looking to purchase a new home.
My credit scores from MyFico are ex=717, eq=719 tu=704. My husband is ex687, eq676, tu=667.
Are these Fico 8 or 4 scores? ...if they are Fico 8, buy the 3B report to see your Fico 4 (mortgage) scores ...the difference between the two score models can be substantial ...recent member posts have noted as much as -70 points to as much as +30 points ...it depends on your individual files so there is no reliable way to predict what they will be but you need to know ...bite the bullet and buy the 3B ...the mortgage scores you will get have been repeatedly confirmed by members here as the same their mortgage lenders pulled on the same day. Read Revelates excellent sticky post on this at the top of this forum.
His income is 84,000 w2
I just started a new job about 6 months ago, after getting us settled in. I will make about 32,000 w2.
Is your new job in the same field as your previous one? ...if so, your underwriter will most likely be satisfied with a simple LOE ...if not, it could become a problem ...but since your husband's income is sufficient to manage the mortgage alone, probably not.
The home we are looking at is $256,000
All debt payments total around $1100 per a month.
What are your FE/BE DTIRs looking like? ...this is a key metric on any govt guaranteed loan.
We are looking to put 10% down.
Make sure you fully understand all the pre-paid and closing costs before you commit to a dp number ...you know the house you want ...run it by a few different lenders, preferably ones recommended by your realtor (DO use a buyer realtor) ...the lenders should be able to give you GFEs that disclose all of your costs ...once you know what they will be, you can run the numbers again and if 10% dp still makes sense, great.
My concern is that my work history has a 9 month gap whilke we got settled. I had toget the house in CA sold, and get our son enrolled in school.
See above comment.
Any advice would be greatly appreciated.
...hth
@mrpeabody wrote:That is the issue, my job is not in my previous field. My husband got me a job with his company. We recieved a GFE from the lender on Friday. Using DTI calculators that I found online, it appears that our FE is about 13% and BE is 31%. How would my income factor in if the underwriter figures my time of employment is too short? Would they only count my husbands income? These are the scores that a lender gave us when we applied for, and were given a pre-approval. However we are hoping to use the in house lender so that we can get the incentives. Free sunroom and 5000 towards closing costs. We have not applied with them yet.
...good news on the scores front! ...if a mortgage lender pulled them they are almost certainly valid
...if you had several years of prior job income and have at least 6 months in your current job, its likely that your underwriter will include it ...but understand upfront that its his call ...he will almost certainly want an LOE to cover the 9 mt period.
...be very careful of those in-house builder incentives ...there is no such thing as a "free" sunroom ...you, the buyer, pays for it one way or the other ...simple fact of life
...as for the 5000 toward closing costs, read your GFE very carefully ...WHOSE closing costs are being paid? ...all to often builders are deliberately deceptive on this point ...in a hands-off transaction, the seller has closing costs HE MUST PAY ...but a builder tells you his paying those are an "incentive" bonus for you ...its a repeated story across these forums and a prime reason for you using your own realtor/lenders rather than the builder's preference ...suggest you post a copy of your GFE here (sanitized of course) and see if one of our realtor pros can tell you if this is what's happening in your case.
...hth