new on the mortage forum

[traveler2005]

Hi

I just have a few questions.

My and my husbands middle scores are greater than 640. We are planning on selling our home and moving into a larger home. Our house is paid off in full, so anything we are offered is equity.

I have read that lenders look for a down payment and closing costs in your account for 2-3 months prior to closing. What happens if you are selling your pre exisiting home and will use that money as a down payment. We are planning on going FHA but will put down more than 3.5 %.

Also when looking to DTI do you look at what your payments are for the month minus utilities and divide that by what your income is? Or do you take the total of what you owe and divide that by your income?  Beside student loans, credit cards, car payments, what else do you take into account????  What is the percentage that is allowed???

We bought our first home on a real estate contract, so none of this was taken into account.

Also how long since your last credit inquiry or newly opened account should you wait to apply for a home loan?  6mo, 9mo, 12mo, ???? What would be the minimum? 

Thanks for your help.

[DallasLoanGuy]

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@traveler2005 wrote:

Hi

I just have a few questions.

My and my husbands middle scores are greater than 640. We are planning on selling our home and moving into a larger home. Our house is paid off in full, so anything we are offered is equity.

I have read that lenders look for a down payment and closing costs in your account for 2-3 months prior to closing. not true. we use funds from selling a home all of the time. What happens if you are selling your pre exisiting home and will use that money as a down payment. We are planning on going FHA but will put down more than 3.5 %.

Also when looking to DTI do you look at what your payments are for the month minus utilities and divide that by what your income is? Or do you take the total of what you owe and divide that by your income?  Beside student loans, credit cards, car payments, what else do you take into account????  What is the percentage that is allowed??? just the stuff on credit(unless you have something like a car loan that doesnt report). we dont consider utilities.

We bought our first home on a real estate contract, so none of this was taken into account.

Also how long since your last credit inquiry or newly opened account should you wait to apply for a home loan?  there is no set time period. all depends on the profile. i actually had a girl buy a car while under contract.... she needed a car for work. 6mo, 9mo, 12mo, ???? What would be the minimum? 

Thanks for your help.

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[MorToProducer]

Hello. There are no issues using the equity you get dorm sale of current home for purchase of new one . Generally the max is around 45% for DTI or debt/income which is total min pmts of all debts reporting on credit, mort loans, Car loans, min omits on credit cards etc ( does not include utilities) divided by gross income. There is not a set limit for when you should inquire after another inquiry since the initial inquiry for a mort does not effect your score. Google FICO inquiry buffer phase

Happy to help if you'd like ... And we can check on possible 5% down and no PMI options depending on fico scores !