Purchasing a Home

[Anonymous]

My FICO is 717...I paid off the majority of my CC's. I have approx. 1500.00 on one now and 138.00 on  one and 600.00 on another-this is my total debt as I was able to pay off my 04' vehicle which I plan on keeping another 5 years at least. I have 10,000.00 in a high interest CD. Only thing is, I am getting ready to start a new job. How long would I need on job to consider a home loan??? Also, should I try and raise my FICO higher? As soon as I start receiving a regular paycheck again, I plan on paying off the 1500.00 credit line. Any suggestions appreciated!

Thanks!

[Tuscani]

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knight67 wrote:

My FICO is 717...I paid off the majority of my CC's. I have approx. 1500.00 on one now and 138.00 on  one and 600.00 on another-this is my total debt as I was able to pay off my 04' vehicle which I plan on keeping another 5 years at least. I have 10,000.00 in a high interest CD. Only thing is, I am getting ready to start a new job. How long would I need on job to consider a home loan??? Also, should I try and raise my FICO higher? As soon as I start receiving a regular paycheck again, I plan on paying off the 1500.00 credit line. Any suggestions appreciated!

Thanks!

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Your FICO is good.. however, the recent job change could be an issue with many lendors.

[MM1234]

Did you get all 3 FICO scores? I think your 717 is good if all are similar and you Debt seems low. The only thing i'd consider is your new job. Unless you are 1000000% sure you will have this job for a while it may have you feeling a bit nervous if you get a house payment unless you have a fall back plan.

With a short Job history and a $10K CD the lenders may need to see more liquid available and / or ask for a larger down payment.

If you had at least 6 months of salary in Savings it may help you feel a bit more secure and look better to the lenders. Then you can even try for a LOW or NO Downpayment loan ( not recommended but not sure how soon you need a house). This will allow you to keep your savings for an emergency fund.

Im now in the house hunting stage but wont buy till I have 12 months of Salary in Savings....( well maybe 8-9 months....Im getting kinda hype - ha!! ) But...This is cause Im my own boss and dont want to risk things.

[Anonymous]

you are fine. If you have worked in the same type of job for 2 years or more a new position isnt bad especially if you are getting a raise or higher pay then your last job. Your FICO score is great, and you can expect a great interest rate with it as is. The question about vehicle loans and credit cards is relative. It depends on your current gross income. To calculate how much af a loan you can afford you would first look at your gross income. Your monthly payments cant exceed 28-33% of your gross monthly income. Second is your debt ratio to income that is factored in. Your total debt with your monthly payment shouldnt exceed about 38% of the gross not the net. In fancy loan officer terms we call these the front end and back end ratio. So to sum it up if you are in the same type of idustry for two years you can apply for a home loan now. Hope that helps a little bit. By the way dont pay off your credit card all the way and leave it or cancel it. If you keep the balance under about 30% you will help your score stay high. Many people think if they pay off their cards and stop paying them they will help there score it wont it will hurt it. Hope this helps a little!

[Anonymous]

Thanks, Stuart. Your information was very helpful. It is in the same industry and is more money. Of course, I wouldn't want to attempt a home hunt until after being on the job six months or more and making sure it will be a long term stay. Also, having at least 3 months salary in savings also.

Good advice though! Have a great day!

[Anonymous]

EXP-736

Equifax-724

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