cancel
Showing results for 
Search instead for 
Did you mean: 

Would I qualify for a mortgage?

Valued Member

Would I qualify for a mortgage?

First time home buyer here, I've been working hard rebuilding my credit for this.  I'm thinking that an FHA is the best way to go.  Below is my info, any insight would be greatly appreciated!

 

Credit Score- EQ 675

2 Credit cards- Cap One- 0 balance on 300 limit, CU credit card- 160 balance on 1500 limit - 8% combined

Income- $74K annually

Monthly payments- car payment $330 (living with family now)

Employment- Full time, same company for 8 years

Assets/Reserves- 12K in 401K, 5K in savings

THIS IS WHAT SCARES ME- I have 3 COs (paid)- 2 from 2008 and 1 from 2010.  1 paid collection from 2007.  Also the lack of revolving credit.

 

Not sure to add my wife on the application as well, her info is below

 

Credit Score- EQ 694

1 Credit card- (same Cap One as above)

Income- $40K annually

Monthly payments- car payment $350, school loan $150 (also living with family)

Employment- Full time, same company for 1.5 years...previous job was in the same industry for 2+ years

Assets/Reserves- Same as above

1 30 day late in 2010 on school loan, no collections, no COs

 

We live in the northern VA area, so the market is not cheap.  We're hoping to get pre-approved between the $350-400 range.  From our info, would this be feasible?  Thanks in advance!!


Starting Score: 505 1/15/12
Current Score: 745 6/20/16
Goal Score: 750


Take the FICO Fitness Challenge
6 REPLIES
Valued Contributor

Re: Would I qualify for a mortgage?

I think you could do 350k to 400k, but you are getting very close to maxing out the front end.

 

Income is the problem

 

Your credit is fine.

Valued Member

Re: Would I qualify for a mortgage?

Great, thanks for the insight!  What had us worried were the past COs and lack of revolving credit.

 

We really don't want to have to spend more than 300-350, so hopefully we'll be fine.


Starting Score: 505 1/15/12
Current Score: 745 6/20/16
Goal Score: 750


Take the FICO Fitness Challenge
Valued Contributor

Re: Would I qualify for a mortgage?

You need your wife on the loan to be able to afford $350/$400K. $400K is really pushing it and that assumes both of your incomes.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Valued Contributor

Re: Would I qualify for a mortgage?

Not sure how long you and your significant other have been living with family, but honestly if living with family making 115K a year between the both of you and only have a small savings, you may want to rethink about buying a home right away.

 

Im not trying to judge, but just from what you stated it is very possible you are just not ready for the responsibility.

 

I could be so far off base on my thinking, just really voicing you need to really think about the responsibility and debt you are getting yourself into.

 

Your income with your significant other is very borderline on approval in the price range you are thinking of. But for sure you would be best to use both incomes as you would have a better chance to qualify.

 

Hope it works out for you.

Good Luck
May all your dreams and wishes become a reality!
Valued Member

Re: Would I qualify for a mortgage?

Thank you for all the replies!  We really don't want to pay more than 350K for a home, so not being pre-approved for 400K is just fine.  Ideally, we would like to stay in the 300K range, but the market in this area is so expensive! 

 

As for living with family, we've been doing that for only a month now.  I was transferred back to my home town for work, so we're temporarily staying with family until we find a home.  We're both in our early 30s, and have been renting for almost 10 years!!  No more wasting money for us!  This transfer for work is definitely a position where we won't be going anywhere soon, so we're finally ready to set our roots.

 

Thanks again for the insight everyone!  We will keep you posted as our house hunt continues! 


Starting Score: 505 1/15/12
Current Score: 745 6/20/16
Goal Score: 750


Take the FICO Fitness Challenge
Valued Contributor

Re: Would I qualify for a mortgage?

You are fine credit wise but you need to stay where you are and bank some money.   Using $350K middle ground your looking at $17.5K just in a 5% down payment.  Depending on the tax rate and other closing costs you could be looking at $30k just to close.  Then you'll need some reserves.  Depending on loan type and lender this can be anywhere from 0 to six months.  My suggestion would be to buckle down and save every dollar you can for a year and then start looking at a loan.