So after realizing I've been renting apartments for 10 years and spent close to $175,000 on rent, and getting into a better financial and credit situation, I'm looking to buy a house within the next year.
Here are answers to questions posed in the sticky above:
Credit. What are your credit scores and if you have any, what negatives (collections, charge-offs, late payments, BK's, judgments, tax liens, back owed child support, etc.) are on are credit and if they are owing or not. When were the negatives, this is important, month/year is preferred, such as 3/07.
Credit Scores: EQ-662, TU-644, EX-654
Have 2 accounts in collections from 2012 - 1 for 990 for rent owed (doesn't show DofD online) 1 for $3850 for charged off card. 3 cards charged off in 2/2013 with DofD of 8/2012. An auto repo in 5/2012, DoFD 1/2012. 2012 was just a really bad year.
Income. Gross income is what is important when qualifying, not net income.
Currently making $89,600/yr. I work full time, but as a contractor.
Monthly debt payments. This goes hand in hand with income and the new mortgage payment to determine your debt to income (DTI) ratio. Only items on credit is the general rule, but also items such as alimony, child support, union dues and some other work related expenses are included too. Only the minimum required payment amount is what underwriters are concerned with.
Car loan $410 (am currently a month ahead on this), Credit cards typically no more than $30.
Employment (for those who are employed). What type of employment such as self-employed, S-corp, W-2'd, 1099'd, part-time, full time, 2nd job, etc. How long have you been on the job & how long have you been in the industry. A 2 year employment history is what most loan programs require.
As mentioned above, contract work. I've been in my current position since September 2012, but have been working fairly steadily since 2005.
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).
Only have checking and savings accounts. Currently have roughly $3900 saved. Can save roughly $1500-2000 every month.
Location. Preferable Bucks County, PA
Property. Don't have a place in mind yet, but definitely a house - no condo/townhouse/etc.
Value. Based on zillow, most homes around here go from 200-300k
Occupancy. Currently renting @ 1140/month
Transaction Type. Purchase
I'm planning on talking with my credit union this coming weekend. Any tips/suggestions/concerns that might impact me getting a mortgage?
