topic Re: Your Best Guess/suggestion For Pre Approval in Mortgage Loans

Your Best Guess/suggestion For Pre Approval

Anonymous — Tue, 22 Oct 2019 03:52:32 GMT

Hey All,

I just got married 20 months ago and my wife and I are wanting to move soon. My wife has had her house for 14 years now, mine went with the divorce 7 years ago. We want to either build or buy in the $400-415K range.

Our credit profile:

I have a Mortgage Middle score of 725

Filed BK 7 discharged sept 2012 (divorce)

No Lates in the past 7 years

Child Support $927 per month done Feb 2020

Car Lease $315

Capital One Bank $4,473 / $7,000

Capital One Bank $123 / $14,000

Discover Financial $0 / $4,900

Capital One Bank 0$ / $13,300

Capital One Bank $0 / $500

Income $103K plus Bonus (Last Year W2 $119K, this year minimum $113K) Same career Field for 29 years

Wife:

Mortgage Middle Score 634

Brand new Student Loans of $21K (she is currently back to school)

All Payments Current past 18 months

The only Late payments in the past 24 months shown on her report is 3 mortgage payments paid late 2017

Syncb/amazon $1,620 / $1,900

Jpmcb Card Services $2,000 / $2,300

Kohls Department Store $2981 / $3,000

Capital One Bank Usa Na $1980 / $2,000

Jpmcb Card Services $460 / $500

Syncb/banana Republic $3,929 / $4,700

Comenitybank/venus Credi $1,654 / $2,020

Comenity Bank/buckle $1,957 / $2,790

Von Maur $212 / $1,000

All Above paid ontime

Wife Income: $75K+ Same career Field for 24 years

Current House (in her name only) Mortgage Balance $107K Market Value $180K

20K in savings

67K in 401K

My question.. Can I get pre-approved alone if we consider $45-50K down using house sale equity? Or do we need to work on her score to go together and get it done?

Any constructive criticism will be appreciated. 😊

Re: Your Best Guess/suggestion For Pre Approval

chiefone4u — Tue, 22 Oct 2019 04:16:18 GMT

I'm no expert on mortgages, rough guess on your own you will likely be able to qualify somewhere in the middle to upper $300k area (other factors may allow you significantly higher-- again I'm no expert).

Questions that might help others give you a more precise answer is what state do you live in (community property state)? Do you have any military affiliation?

If you're concerned about her credit score, with roughly $15k you could get her scores into upper 600's low 700's. As I'm sure you can tell, her utilization is killing her scores. AZEO method would give her score a big jump.

Re: Your Best Guess/suggestion For Pre Approval

AllZero — Tue, 22 Oct 2019 09:00:16 GMT

Your score could be improved upon too. Capital One Bank $4,473 / $7,000 has high utilization 64%

Her scores can be improved. Question is, how much money do you want to use to pay down the debt?

Estimates for FICO 8 points. Mortgage scores EX2, TU4, EQ5 should react similar.

40-60 aggregate utilization

(+-)20 individual utilization.

60-80 points

	Balance	Limit	Utilization
Amazon	$1,620	$1,900	85%
Jpmcb	$2,000	$2,300	87%
Kohls	$2,981	$3,000	99%
C1	$1,980	$2,000	99%
Jpmcb	$460	$500	92%
BR	$3,929	$4,700	84%
Venus	$1,654	$2,020	82%
Buckle	$1,957	$2,790	70%
Von Maur	$212	$1,000	21%
Total	$16,793	$20,210	83%

Re: Your Best Guess/suggestion For Pre Approval

Anonymous — Tue, 22 Oct 2019 13:21:38 GMT

Hello,

Thanks for your input.

We are in Nebraska, No Military

We could pay down some of the wife's CC debt pretty quickly, and I know that would help overall FICO scores, just was not sure how much it would help her Mortgage score? That's why I was wondering if I could go at it alone now to speed up the processes of getting approved. If we need to build I would like to get it started sooner than later. Also, not paying down the CC debt leaves us to use some of our cash reserves for any emergency etc.

I would think most likely we could get approved for our $415K if we went in together even at this point, I was just hoping for better rates using my middle score.

Re: Your Best Guess/suggestion For Pre Approval

chiefone4u — Tue, 22 Oct 2019 14:50:06 GMT

Together your income should qualify for the loan you want.

I'm pretty sure you can get her mortgage score into the same rate tier you are currently in by bringing most her card's to a zero balance, and leaving the other under 8.9% utilization.

If you're going to apply alone you will probably want to wait until after you're no longer required to pay child support. The $900ish payment will definitely be questioned when the underwriter reviews your bank statements.

When you've decided its time for you to apply, I'd talk to your primary checking bank (see what they offer). Your chosen contractor will likely have suggestions for lenders that know how to close a construction loan.

For me, Ally bank had best rate and terms (didn't qualify for enough on my own for the house we purchased, and wife's credit wasn't high enough to add her).
US Bank offered terms close to what Ally offered and accepted my wife's score (we used US Bank for our loan).
Our credit union offered us a loan also, but we decided not to use them since we were told they wouldn't service the loan for the complete term (small credit union, 5 branches).

Best of luck.

Re: Your Best Guess/suggestion For Pre Approval

VALoanMaster — Tue, 22 Oct 2019 20:31:11 GMT

@Anonymous wrote:
Hey All,
I just got married 20 months ago and my wife and I are wanting to move soon. My wife has had her house for 14 years now, mine went with the divorce 7 years ago. We want to either build or buy in the $400-415K range.

Our credit profile:

I have a Mortgage Middle score of 725
Filed BK 7 discharged sept 2012 (divorce)
No Lates in the past 7 years
Child Support $927 per month done Feb 2020
Car Lease $315
Capital One Bank $4,473 / $7,000
Capital One Bank $123 / $14,000
Discover Financial $0 / $4,900
Capital One Bank 0$ / $13,300
Capital One Bank $0 / $500
Income $103K plus Bonus (Last Year W2 $119K, this year minimum $113K) Same career Field for 29 years

Wife:
Mortgage Middle Score 634
Brand new Student Loans of $21K (she is currently back to school)
All Payments Current past 18 months
The only Late payments in the past 24 months shown on her report is 3 mortgage payments paid late 2017
Syncb/amazon $1,620 / $1,900
Jpmcb Card Services $2,000 / $2,300
Kohls Department Store $2981 / $3,000
Capital One Bank Usa Na $1980 / $2,000
Jpmcb Card Services $460 / $500
Syncb/banana Republic $3,929 / $4,700
Comenitybank/venus Credi $1,654 / $2,020
Comenity Bank/buckle $1,957 / $2,790
Von Maur $212 / $1,000
All Above paid ontime
Wife Income: $75K+ Same career Field for 24 years

Current House (in her name only) Mortgage Balance $107K Market Value $180K
20K in savings
67K in 401K
My question.. Can I get pre-approved alone if we consider $45-50K down using house sale equity? Or do we need to work on her score to go together and get it done?

Any constructive criticism will be appreciated. 😊

Hi Shimp,

Based on the info you provided & some "assumptions" on my part, you should be fine at $415,000 with 45K down on your own.

I guessed your cc payments would run $400 per month & taxes & insurance on the house would run $600 per month.

These figures combined with your car payment & child support put your debt to income ratio under 45%.

Does that make sense?

Re: Your Best Guess/suggestion For Pre Approval

Anonymous — Tue, 22 Oct 2019 21:49:20 GMT

ValoanMaster.

Thanks for your input. I was thinking I will pay down all CC (mine not wifes) to $0, but leave a small balance on one? It may take me a couple of months, but hoping the DTI gets better than you suggested and helps get me a better chance of securing by myself. Then we will attack my wifes CC over time.

Re: Your Best Guess/suggestion For Pre Approval

CreditInspired — Tue, 22 Oct 2019 22:02:39 GMT

Just brainstorming here.
A question. Is it possible or would a lender accept, if OP wanted to pay the last 4 child support payments in a lump sum. That would give his DTI a humongous boost and he would no question be able to qualify on his own for the mortgage he wants.

Re: Your Best Guess/suggestion For Pre Approval

VALoanMaster — Wed, 23 Oct 2019 16:09:16 GMT

@Anonymous wrote:
ValoanMaster.
Thanks for your input. I was thinking I will pay down all CC (mine not wifes) to $0, but leave a small balance on one? It may take me a couple of months, but hoping the DTI gets better than you suggested and helps get me a better chance of securing by myself. Then we will attack my wifes CC over time.

As long as your DTI is under 45%, you'll be fine.

Re: Your Best Guess/suggestion For Pre Approval

VALoanMaster — Wed, 23 Oct 2019 16:13:36 GMT

@CreditInspired wrote:
Just brainstorming here.
A question. Is it possible or would a lender accept, if OP wanted to pay the last 4 child support payments in a lump sum. That would give his DTI a humongous boost and he would no question be able to qualify on his own for the mortgage he wants.

@CreditInspired,

While that is certainly an option, it's not really necessary because the OP's DTI is under 45% with the child support included.