topic Re: Mortgage application anxiety in Mortgage Loans

Mortgage application anxiety

Anonymous — Sun, 24 Mar 2013 05:06:12 GMT

Hello all! I've been lurking around here for about a week trying to get an idea on how to prepare for a mortgage app in about a month.

Here are my facts:

Yearly income: $31,500

Credit scoes: myfico equifax 710, transunion (walmart myfico) 695

I have 7 credit cards in all, all for over 3 years, always paid on time. most have s small limits, the highest being a wells fargo cc with 1400 limit. I just paid off 4 so I have a zero balance on those but 3 are at about 70-80% utility for no reason other than sheer ignorance to the fact that it looks better to have the utility rate much lower. I am working on paying them off but most of my income is going to saving for a house.

I also have a car loan of $315 a month. It was a 5 year note but I only have only 13 months left. They reported a late payment about 3 years ago but I had asked for an extension and it shouldnt have been counted as late. i disputed it last year and it was cleared from my credit report. I have no other debts aside from student loans, 30k, that are in deferral for about another year and a half but my car will be paid off by then.

My DTI backend with a house payment of $750 a month would be at about 48% if the include all my credit cards even the ones with zero balance (which I no longer plan on using).

I am looking at a house of about 90k and have the 3.5 downpayment ready (seasoned for 60 days), with $1200 for reserves income tax return. I also plan on saving about 2k in the next couple of months and my boyfriend wants to gift me about 1k for downpayment.

My questions are:

What are the chances that I will get approved?

How far back does FHA check bank statements?

I have some unpretty wells fargo advances while I was on vacation last year because I couldnt get to my savings which i keep in a credit union. How badly will those affect me?

What can i do to improve my chances of getting improved? I have only briefly spoken to a loan officer but havent met face to face because I dont want my credit pulled until I'm ready.

While I know I could have probably prepared better, I need a home and I'm ready. Any and all advise will be greatly appreciated--thank you in advance! I am already anxious and stressed and haven't started the process yet.

Re: Mortgage application anxiety

Anonymous — Sun, 24 Mar 2013 05:24:12 GMT

I think you are in great shape! For FHA, they usually require 60 days of bank statements. Wishing you the best in finding a new home!

Re: Mortgage application anxiety

Anonymous — Sun, 24 Mar 2013 15:23:00 GMT

Thank you so much! I just jumped right to it in my original post because it's all Ive been thikning about! There are a lot of very knowledgeable people posting so I thought i'd put my situation out there for some guidance. thanks again for your input.

Re: Mortgage application anxiety

boomhower — Sun, 24 Mar 2013 17:49:09 GMT

You should be just fine. 95% of the time they want 60 days of statements. I would suggest paying the cards down if you can. It will help your DTI ratios and you credit score . If I'm not mistaken once your car loan gets to less than 12 months it's not counted in your DTI either.

Re: Mortgage application anxiety

Anonymous — Mon, 25 Mar 2013 01:05:23 GMT

@boomhower wrote:
You should be just fine. 95% of the time they want 60 days of statements. I would suggest paying the cards down if you can. It will help your DTI ratios and you credit score . If I'm not mistaken once your car loan gets to less than 12 months it's not counted in your DTI either.

Its 10 months or less.

You should be fine...