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hoping to apply for mortgage- have some questions- NJ

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stefnian0426
Regular Contributor

hoping to apply for mortgage- have some questions- NJ

Hi all

We live in NJ and currently rent out a home. We have 3 kids and 2 dogs and it is just time to purchase.

We are looking to stay in NJ for my husbands job (i am stay at home mom and home school our 1 child)

 

We are planning on putting the mortgage in my husbands name only as i have 2 collections i am currently paying.

Last year my husband had no credit. In that 1 year he has had a capital one secured card and victoria secret card- both with no missed payments, under 30% usage, in good standing. Last time we checked his scores were between 650-700.

We would be applying for a FHA loan for the low down payment (which would be a gift from family member)

We also have alternate credit

-cell phone bill- good standing since 2012

-car insurance- good standing since 2011

-motorcycle insurance- good standing since 2012

-can get letter from landlord- good standing since 2010

-

 

He has worked at his current job for past 10 years. He was just offered another job (better pay, better benefits) same type of work- hvac.

We have $3,000 saved- hoping to put a little more away.

 

2 years ago bank of america said a 150k loan would be great for us (without checking our credit) since they he has recieved a few raises.

In our area houses are 150-170k. Lower would be great of course. He makes 46k a year. If all pans out with his new job, they offered a raise putting him around 52k a year.

 

Although i do not work i do have financial help. my kids father passed away a few years ago and i recieve social security for them. ($1,200 monthly) i know that doesn't really matter since i would not be on the loan but we can afford something around 1,500 a month without issue for the next 10 years.

 

Hoping to see what others think. Do we have a good chance at being approved, is there anything else we can do to help better our chances?

I really want to have all of our ducks in order- which papers to have when applying and knowing all info ect.

We would really like to apply jan-feb some time but can wait if we need to.

Thank you very much for any and all help!

Message 1 of 11
10 REPLIES 10
edcampbell613
Contributor

Re: hoping to apply for mortgage- have some questions- NJ

Does not look bad, but just get pre-approved 1st.

 

You are allowed to jump on the loan and use the SSI income as long as it goes beyond the 3 yr mark.

Message 2 of 11
stefnian0426
Regular Contributor

Re: hoping to apply for mortgage- have some questions- NJ

 


@edcampbell613 wrote:

Does not look bad, but just get pre-approved 1st.

 

You are allowed to jump on the loan and use the SSI income as long as it goes beyond the 3 yr mark.



Thanks.

Really? I was told that they must say "satisfied" or "Paid" in order to be on the loan.

Both are older then 3 years. Both i believe are near 6 years old.

Message 3 of 11
netsfan549
Regular Contributor

Re: hoping to apply for mortgage- have some questions- NJ

what part of nj are you looking at? I am asking because i am from nj as well

Message 4 of 11
HiLine
Blogger

Re: hoping to apply for mortgage- have some questions- NJ

I would think you'd be approved for at least 100k. Let your husband know that he can possibly raise his credit score to the 700's. Here's what he can do to maximize his FICO credit score in a month: http://hiepsfinance.com/2014/11/04/how-do-i-improve-my-fico-credit-score-in-a-month/

Message 5 of 11
stefnian0426
Regular Contributor

Re: hoping to apply for mortgage- have some questions- NJ

Looking in North jersey (sussex county)

Thanks for the info!

Message 6 of 11
netsfan549
Regular Contributor

Re: hoping to apply for mortgage- have some questions- NJ

nice I am looking around there as well

Message 7 of 11
StartingOver10
Moderator Emerita

Re: hoping to apply for mortgage- have some questions- NJ


@stefnian0426 wrote:

 


@edcampbell613 wrote:

Does not look bad, but just get pre-approved 1st.

 

You are allowed to jump on the loan and use the SSI income as long as it goes beyond the 3 yr mark.



Thanks.

Really? I was told that they must say "satisfied" or "Paid" in order to be on the loan.

Both are older then 3 years. Both i believe are near 6 years old.


^^^You were told this because that is particular to the lender you went to for pre-approval before. It isn't an FHA requirement.

 

Ed is right about the SSI income. You should strongly consider gettting on the loan yourself too to bring in that additional HH income it will help you tremendously in the qualifying process.

 

Don't go back to that lender you used before. Go to a mortgage banker - someone that underwrites and funds their own loans and is NOT a big box bank.

You will have a much better experience.

 

Message 8 of 11
stefnian0426
Regular Contributor

Re: hoping to apply for mortgage- have some questions- NJ

Thanks for the info

We were planning to use a mortgage broker.

 

Message 9 of 11
coterotie
Established Contributor

Re: hoping to apply for mortgage- have some questions- NJ

Are they collections or judgements?

Makes a big difference.  IF collections, you might have a score high enough to get over the FHA credit score mark and if you have a written agreement a good lender can likely get it approved.  Additionally, make sure the SS income is grossed up for income qualifications purposes.  Many folks don't know how to do this in desttop underwriter, make sure your lender does.  What it means is that your ss income of 1,200 per month is really 1,500 for mortgage qualification purposes. So with your husbands raise your gross income should compute to $5,833/month. 

 

Out of curiosity how large are the collections?  Any way to PFD or goodwill them?  Do you have anything good in your file or is it all negative info?


@stefnian0426 wrote:

Thanks for the info

We were planning to use a mortgage broker.

 


 

Message 10 of 11
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