can i get approved?

[Anonymous]

my fico is hovering around 710....and steadily on the rise

my ratios seem to be ok with revolving credit....utilization 12% on a store issued card  (337 balance on 2600 limit)

my ratios with my installment accounts are a different story....one car loan owe 16k on an original 23k loan and my student loan still has an 8k balance on an original 11500 loan...

my trade lines have been established for some time...my student loan has been open since 05, my car open for 16 months, and my revolving credit open with my store card for 29 months...and i also just was approved for another wells faro platinum visa with a 5k limit yesterday.  6 months from now i will have 4 open trade lines and my balances will be substantially lower for my installment accounts.  i know most lenders want at least 4 trade lines and they want them open for 2 plus years?!  i am not in the market for a mortgage today but i need to plan for the purchase so i seek advice on this forum!  thank you...greatly appreciated this community!!

my w2 are another story.  i am a server and my w2 reflect 30k a year in earnings...i am under the impression that w2 will trump my ratios and fico in terms of lending limit....a friend of mine in the mortgage business told me last year he could get me approved FHA with a possible loan in the 110k range...if there was a property i liked in the 160 to 200k range then well i would need to throw up a very large down payment to offset the difference...i have 15k liquid now in bank

my restaurant is family owned.  i can get a raise to reflect higher earnings on my w2 and let that linger for some time....(6 months?  1 year? 2 years?) but my raise will be limited to an extra 100-150.  my car loan, although in my name, is paid for with my business.  its a solid business expense but has the payment is reflected on my credit report and thus decreasing my income by 399 a month....i have business banking records that show the loan is paid for by the business and not my personal account...

i am not looking to buy a lavish mansion, but 110k in my area buys you something that is not that desireable...what should i do do get approved in the 165-185k range?!  get a raise? bigger down payment?  co-signer? if i get a raise how long does a lender want to see paystubs for the current pay?  should i wait til next year or two so my w2 shows my raise??  should i pay down my installment accounts?  would that increase my lending limit with less installment balances?!

[ShanetheMortgageMan]

Your credit history should be fine, usually just need 3 trade lines as 12 months.  Sometimes even non-traditional credit (utilities, rent, cell phone) can count as well.  So you have the 3 at 12 months, and they'll obviously grow older as you approach the time you are ready to buy.  Just to clarify, the ratio of installment balances vs. installment limits (aka. original balance) isn't important when qualifying for a mortgage, nor when it comes to your FICO scores.  The payment on the installment debt is what impacts mortgage qualifying.  And it's the ratio of revolving balances vs. those cards limits which affects your FICO scores, and on a not-so-strong loan an underwriter may even allow it to impact their decision to approve.

When you are a server and paid hourly, the lender will either take a 2-year average of your wages (including tips) or may multiply the current hourly rate x average hours worked (happens less often now).  If you are salary, since it's a modest increase then the new salary would likely be used instead of the 2-year average.  It also sounds like you own a business "...car loan, although in my name, is paid for with my business", so the business income/loss would also be considered.  What business do you own?  The restaurant or?  Unless it's a co-signed debt with the business, it's tough to get a payment on your personal credit report omitted due to the business paying it.  It's possible, and you'll need the business bank statements like you mentioned, the tax return showing the expense, all matching the monthly payment amount.  Is this business a Schedule C business, an C or S-Corp, etc.?

To qualify for more then you'll either need to increase the amount of qualifying income (raise, co-signer) or decrease the amount of monthly payments you are qualifying with (larger down payment, lower sales price, paying off consumer debt like credit cards, car loans, etc.).  Remember if you get a co-signer their credit and income/debt situation should be stronger than yours, or else they add little to no benefit.  You listed several items from the checklist that help, but still need to know how much your monthly payments are, and also more details about the "business".