topic Re: Scared and Will be pulling the trigger soon! in Mortgage Loans

Scared and Will be pulling the trigger soon!

msgudcred1979 — Tue, 05 May 2015 02:13:41 GMT

Not sure if it is time to purchase a house. Or should we wait a month or 2? We have been renting for 10 years the same house.

My income $93,941.45 with annual bonus$104,223 I get a bonus every year. 10 years at the same company.

Husband's income $137,056 3 years at same company, 20 years same field.

Gross together $230,997/ $241,279 with my bonus

our DTI is 12.5% (credit cards, car and truck notes, child support)

My mortgage scores from here Ex:699, Trans:656, Eq:661 (myfico)

I think scores will increase because I paid around $6,000 in credit cards off. Card companies haven't updated reports. I have 1 medical collection on Transunion that is $51, paid, but showing owed, 1medical collection on Experian $38, showing paid. 1 30 day late from Merrick Bank from July 2012. I disputed them, so being optimistic.

Husband's mortgage scores are Ex:672, Eq:695 Transunion: locked will take care of it when he gets in town Wednesday.

He has 1 judgement from child support in 2012, hoping to get it removed, never disputed or anything, he actually gets around $300 a month refund from La., child support!? Strange. No other baddies.

We are looking at a Mortgage up to $300,000 in Louisiana, around $25,000 down (401k), but can go up to $60,000 down.

Should I wait to see if we can get the negatives off and possibly increase our scores, or start the process?

I value the opinions of this forum. I read this site about 10 times a day. lol

Re: Scared and Will be pulling the trigger soon!

Anonymous — Tue, 05 May 2015 02:57:15 GMT

In your shoes, I would wait for better scores to update & do anything else that could raise the scores over the next couple months. Having a higher score will get you a better rate that can save you tens of thousands over the course of your loan. The rates may begin to creep up again, but I still think you have time to bump those scores a bit. Best of luck to you!

Edit to add a link to my favorite mortgage calculator. Play around with the interest rate a bit to see how even a small change can make a huge difference over 30 years.

Re: Scared and Will be pulling the trigger soon!

msgudcred1979 — Tue, 05 May 2015 02:56:43 GMT

Thanks. I would like to close before August. New school year. That's what I figured, but I am so over paying for this crappy, small rent house. I will dispute his judgements and call the credit card companies and see when they report to get a good idea of when to apply next month.

Re: Scared and Will be pulling the trigger soon!

Anonymous — Tue, 05 May 2015 02:58:10 GMT

I'm a goofball & was editing my post while you replied. Please see the link I included. =D

Re: Scared and Will be pulling the trigger soon!

frugalQ — Tue, 05 May 2015 03:02:53 GMT

Are you looking to go FHA or conventional?

If you add 5k to your downpayment and go FHA, you will put 10% down on a 300k home...this will keep you from having to pay MIP for the life of the loan.

With a larger downpayment though, it may benefit you to go conventional....it's possible the PMI rate will be lower than FHA.

Either way....you will have to deal with that judgement before you can close.

Re: Scared and Will be pulling the trigger soon!

frugalQ — Tue, 05 May 2015 03:06:04 GMT

Does the judgement show as satisfied? If it does not, you will still have to resolve it even if you get it removed from report. Judgments show up during title searches...even those that are not on credit report.

Good luck.

Re: Scared and Will be pulling the trigger soon!

msgudcred1979 — Tue, 05 May 2015 03:08:53 GMT

It is satisfied. It doesn't show that it is satisfied.

Re: Scared and Will be pulling the trigger soon!

msgudcred1979 — Tue, 05 May 2015 03:10:51 GMT

Thank you. Leaving for the city!

Re: Scared and Will be pulling the trigger soon!

msgudcred1979 — Tue, 05 May 2015 03:15:22 GMT

Not sure FrugalQ. We will take whatever is offered to us. I will research fha vs. conventional. He flies in from offshore Wednesday, I will have him next to me when I try to take care of it. I know they won't let me handle it without him.

Re: Scared and Will be pulling the trigger soon!

Lemmus — Tue, 05 May 2015 03:15:40 GMT

...your mid score is currently 661 ...DH's TU won't change that ...I don't see anything in your info that is likely to get you into prime conventional loan territory of 740 ...you're already as good as you need to be for fha but afaik the louisiana fha loan limit is 271k ...your 660 with 20% down will get you a conventional with no pmi right now ...not sure where any other rate brackets are but you need a 740 for best rate and are unlikely to get there soon enough

...that seems to say you either need to lower your mortgage target to less than 271k and put 20% down to avoid pmi or go conventional with your current scores and 20% down on a 300k mortgage ...I'm hoping one of our mortgage gurus will jump in to confirm that ...there may be other loan options that suit you better

...the rate market is a gamble right now but the safe bet is they are going up sooner than later ...with your scores/income/dtir I'd go find a good realtor ...talk to her about good lender candidates and then see which has the best answers for you ...get a preapproval and start looking for a home ...you have plenty of time ...if worst case happens and fed rates go up in june it won't be by much ...its the following ones that will start to pinch ...so don't rush into the first one you find but do commit to buying as soon as you find one you can see yourselves living in for at least 10 years

...don't stop working on your credit ...whether you get a good enough bump before you close is moot really ...life continues after the closing ...hth

Re: Scared and Will be pulling the trigger soon!

msgudcred1979 — Tue, 05 May 2015 03:24:12 GMT

Thanks Lemmus. Our market is steadily increasing on home prices due to industrial expansions. I guess we will get a pre approval this week. I have a realtor in mind.

Re: Scared and Will be pulling the trigger soon!

frugalQ — Tue, 05 May 2015 12:39:40 GMT

if you put 10% down on a 300k home, you will be under fha limits...the amount financed will be 270K.