Apply or wait?

[Anonymous]

Looking for a little advice here. I feel like my husband and I are stuck between a rock and a hard place when it comes to applying for a mortgage. We had initially set a goal for us to apply July 1, and I think we can still do that. But part of me also wants to wait and tackle a little more of our credit utilization first. I'm just concerned if we wait too much longer, rates are going to go up, and it's not really going to matter that we raised his credit score and lowered our DTI, just to get a similar monthly payment because of rising rates.

I can't give you the full picture yet, because we took care of x2 PFDs on my husbands report last week that haven't updated yet. But before the collections were sold and reposted, his mortgage FICOs were hovering around 680. And since then, like I said, x2 PFDs that haven't updated, and I've added him as an AU to another one of my credit cards. So I know once all that updates, he will be back to at least 680 in mortgage FICO scores (and hopefully higher). Won't bother with my information...my lowest morgage FICO is 764, so I know lenders will consider the spouse with the lower scores. 

Cards:

Capital One - $7600 balance/$10900 CL (69% UTI)

Chase Sapphire Preferred - $10800 balance/$12800 CL (84% UTI)

Kay Jewelers - $0 balance/$9100 CL

Victoria's Secret - $0 balance/$2000 CL

Conn's - $0 balance/$4500 CL

Dell FS - $0 balance/$6000 CL

Total UTI - just a hair over 40%

Couple car loans and student loans added makes DTI look like this:

Front end DTI (assumes $1500 mortage which is probably higher than we will go for) - 19.09%

Back end DTI (assumes same as above) - 39.48%

I've been at my job for almost 7 years; he's just over 2. We only have $2k saved up for down payment, but that's because we used a lot of what we had to pay off credit cards and his x2 collections. I believe we could have around $10k by July. Can't decide conventional or FHA yet, but will likely only put down 3.5 to 5%.

I know our two remaining CCs are high, but I still think we can get approved with that. (Correct me if I'm wrong). We can wait a bit longer and pay those down some more, but again, my biggest concern is that the longer we wait, the bigger the risk of rising mortgage loan waits. I can't pay down CCs and build back up the down payment at the same time. It's like the whole Clash song...should I stay or should I go?

[me12345]

I agree with your side of the argument... Do it sooner rather than later

FHA rates are not FICO score driven like Conventional rates are...Getting you Husbands scores up wont make that much of a difference in the rate....but by waiting they probably will go up.

You can always refinance down the road, if rates ever go down and your scores are higher.

Thanks,

[Anonymous]

I am not trying to hyjack your post whatsover. I tried to create my own post, but the fourm would not allow me to. I am kinda in the same situation you and your husband are in (apply or wait), but with differences. 

Im wanting to buy a house, I just dont know when it is the right time to pull the trigger on the decision. I am going to apply with NFCU, because they offer a first time home buyer programs where I do not have to put any money down and there is also no PMI.

I have the following accounts:

PLOC: $15,000 (no balance but will use to leverage debit)
NFCU: $24,000 (Balance $4,700) New 04/2018
Discover: $13,500 (Balance $0.00) 2013
Chase: $10,000 (Balance $0.00) 3/2017
Citi Card: $5,000 (Balance $0.00) 2013
J.C. Pen: $1,900 (Balance $0.00) 2017

Captial one: $200 (Balance $0.00) 2011

Total credit available $69,600. Current utilazation approx 7%. 

Wife car balance ($4,500) Estimated pay off (07/2018)

My car  balance ($10,200)

After applying for the PLOC and having a few new accounts should I wait to apply for a loan or just pull the trigger after my wife's car is paid off?

My current credit score is 778 and my wife is a 720. That will lower after the hard inquiry hits my credit report. 

Again, I am not trying to take anything away from your post. 

[Anonymous]

If I was you, I would try to pay down at least one of the credit cards you have then to apply. I belive you will be be approved regardless. Just a thoought, I wouldnt put any money down on a mtg. The only reason is because the mgt. loans are front loaded with intrested, which is compounded daily. The money out down is going straight to interest. I personally will have about $10,000 saved in the bank to just have for upkeep for the house. Just a thought, but I am kinda in the same place you are, as to apply or wait.