topic What are the chances??? in Mortgage Loans

What are the chances???

Anonymous — Mon, 19 May 2008 21:25:17 GMT

I just started repairing my credit about 6 months ago and have gotten my score up to a 535. The wife has a score of a 626. We both just graduated and have a combined income of 70k. Credit card debit is about 6000.00, auto 639.00, and thats about it. We really damaged our credit in college with no real income. Since graduating we have started to really pay down the bad debt. Sick of renting and want to buy. Please any suggestions...

Re: What are the chances???

Anonymous — Mon, 19 May 2008 21:44:30 GMT

if you use both incomes on the application you need to use both scores.

get your score to 580 and pay on time every time for one year and go FHA. If you're late with a payment at all you will be temporarily disqualified from FHA. You need a 580 plus no lates for 12 months.

Re: What are the chances???

Anonymous — Mon, 19 May 2008 22:26:58 GMT

The average between both our scores is a 580. Or are you saying maintain her score of 626 and get mine to a 580. Lets say we are desperate, as it stands would we qualify for anything? Thanks for the quick response.

Re: What are the chances???

DallasLoanGuy — Tue, 20 May 2008 00:52:36 GMT

If you don't have any derogatories in the last 12 months, then you may be able to get FHA. You will have to apply to find out.

Sub 580 scores should expect up to 7% for a rate.... where over 580 still qualifies for low 6% range

Re: What are the chances???

Anonymous — Tue, 20 May 2008 13:09:53 GMT

We are going to talk with someone here in the next couple of days. I will keep everyone updated. We are only looking at house in 100k range which is very affordable for us assuming the APR is reasonable.

Re: What are the chances???

ShanetheMortgageMan — Tue, 20 May 2008 14:59:52 GMT

rjeps wrote:
We are going to talk with someone here in the next couple of days. I will keep everyone updated. We are only looking at house in 100k range which is very affordable for us assuming the APR is reasonable.

For that sales price your wife might be able to buy the home on her own credit/income.

Re: What are the chances???

Anonymous — Tue, 20 May 2008 15:35:23 GMT

The only issue with that is her debt to income ratio. Because my credit has been so bad both cars are in her name as well as the credit cards. I have paid off all of my collection, but they still show on my report. I haven't gotten my hopes up yet, I guess were just testing the water. Is it true that we have 2 weeks to run our credit as many times when looking for a mortgage and its only 1 hit?

Re: What are the chances???

ShanetheMortgageMan — Tue, 20 May 2008 16:58:22 GMT

rjeps wrote:
The only issue with that is her debt to income ratio. Because my credit has been so bad both cars are in her name as well as the credit cards. I have paid off all of my collection, but they still show on my report. I haven't gotten my hopes up yet, I guess were just testing the water. Is it true that we have 2 weeks to run our credit as many times when looking for a mortgage and its only 1 hit?

Yeah inquiries for a mortgage within 14 days only count as 1 when it comes to your scoring, although all inquiries will appear on the "inquiries" list.

Yeah if she has the cars on her credit, and unless you can show that the payments for your car have been paid from an account with only your name on it... then your car payments would be included in her debt to income ratio.

What is just her income? What are all of the payments on her credit? Where are you looking to buy?

Re: What are the chances???

Anonymous — Tue, 20 May 2008 17:38:47 GMT

We have a joint account so thats not really an option. Her income is 45k and she has a credit card with a balance of 5800 and a limit of 6000. She also has about 7000 in unused credit. one car payment is 389.00 and the other 250.00. She has never missed or made a late payment. We are looking at purchasing a 100k house in the northeastern Ohio area. I know renting would be in our best interest for another year, but we really want own. What do you think the chances are and or recomend we do.

Re: What are the chances???

Anonymous — Tue, 20 May 2008 17:59:13 GMT

rjeps wrote:
We have a joint account so thats not really an option. Her income is 45k and she has a credit card with a balance of 5800 and a limit of 6000. She also has about 7000 in unused credit. one car payment is 389.00 and the other 250.00. She has never missed or made a late payment. We are looking at purchasing a 100k house in the northeastern Ohio area. I know renting would be in our best interest for another year, but we really want own. What do you think the chances are and or recomend we do.

With property taxes being so cheap in OH, go talk to a reputable broker now who knows automated underwriting, and I'm sure you'll have no problem qualifying for an FHA loan now instead of waiting a year.

Re: What are the chances???

Anonymous — Tue, 20 May 2008 18:19:59 GMT

Thanks again, this is so stressful. If I only knew all this 10 years ago. There should be a mandatory high school credit course. We aren't asking for something we cant afford, but its got to show that on paper. Honestly are rent now is probably more than a mortgage payment including tax and insurance.

Re: What are the chances???

Anonymous — Tue, 20 May 2008 20:16:24 GMT

The class should be called Mortgages, Marriages, Births and Deaths....

Re: What are the chances???

Anonymous — Wed, 21 May 2008 13:57:23 GMT

LOL....Well last night we applied for a loan through Quicken and got approved. We asked a number times if this was a preaproval or an approval. The broker confirm that we are approved and the next step would be to sign the documents and provide W2's, pay stubs, bank statements, and assests. Today we a faxed the info to Quicken and she said they need to send it all to underwriting for verification. The broker stated this could take up to 24 hours. Once that goes through all we need to is find house. We did have to put down 350.00 good will money which would go towards closing cost. Approved for and FHA at 6.12% for 30 years.

Re: What are the chances???

Anonymous — Wed, 21 May 2008 14:00:32 GMT

......continued, This is total excitement for the both of us, but I'm still very nervous and think it might be to premature. Let downs come often with bad credit.What's you opinion?????

Re: What are the chances???

ShanetheMortgageMan — Wed, 21 May 2008 14:28:04 GMT

As long as the documentation you sent in matches what they used to get you the preliminary approval then you should be fine.

Re: What are the chances???

Anonymous — Wed, 21 May 2008 15:05:45 GMT

Thanks again, I will keep you posted. I did just get done reading some pretty nasty reviews on Quicken's 350.00 good will money. What I got from it is Quicken is using the word Approved way to freely and they are not commited in any way, but in turn you loss 350.00 if you pull out. The stress is to much. I guess in the end we can only loss 350.00.

Re: What are the chances???

ShanetheMortgageMan — Wed, 21 May 2008 15:08:30 GMT

Yeah I'm not a big fan of any lender or broker which requires you pay an upfront fee to see if you get approved or not... sure it takes some work, but that's the price of business for the lender. You are doing them a favor by applying for them, not the other way around... you can choose to apply anywhere you want. I'm sure things will work out for you though, I'll keep my fingers, toes and eyes crossed for ya.

Re: What are the chances???

Anonymous — Wed, 21 May 2008 16:05:57 GMT

rjeps wrote:
Thanks again, I will keep you posted. I did just get done reading some pretty nasty reviews on Quicken's 350.00 good will money. What I got from it is Quicken is using the word Approved way to freely and they are not commited in any way, but in turn you loss 350.00 if you pull out. The stress is to much. I guess in the end we can only loss 350.00.

This is the rule on an application deposit, no matter what they call it- it needs to be put into a trust account where only third party vendors will be paid- i.e. credit reports and appraisals. If after that there is anything left over, it legally needs to be refunded. You are entitled to a copy of the bills from those third parties to prove where your money went. They cannot keep it if they do not close the loan for ANY reason (denied, you pull out, etc.), and it doesn't matter if you are a banker or a broker. The law is called RESPA.

Buyer be ware!

Re: What are the chances???

Anonymous — Wed, 21 May 2008 16:28:08 GMT

I wish I would have before I paid the 350.00. At this point I'm going to chalk it as a loss. In the event that everything does work then great. Thanks for the advice though. I guess when your desperate your venerable.

Re: What are the chances???

Anonymous — Thu, 29 May 2008 19:11:46 GMT

Update, so we found a house and have made an offer. I would just like to get some input on the time frame we are looking at and the chances everything will work out.

The house was priced at 119k 4 months ago the seller droped it down to 105k. The seller is about to go into fore closer. The home was purchased in 2000 with nothing down for 110k and the seller has made no updates and or any major repairs. Now the roof, gutters ect. need to be repaired and or replaced. We made an offer of 93k with the seller paying seller conssesions. I didn't think he would accept, but I just got an email from my agent saying the "seller is ok with everything". The Realtor said the next step would be to get his bank to accept the offer. My question is what are the chances that will happen and how long could it take for the bank to get back to us? Next question is what are the chances and or guidlines for an FHA home loan approval on a house that needs roof repairs or replacement? This is probably the worst house on the block with property values per zillow ranging from 124k - 280k. Zillow gave this house an estimate of 128k.