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Are we ready to jump into the mortgage pool yet?

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Are we ready to jump into the mortgage pool yet?

Reading the boards quite a bit, I thought it was time to take the plunge to see if I could get some advice.  The wife and I are thinking we may be ready to look for a house. After a few hours of research I think our best bet may be FHA. 

 

If possible I’d like for one of the many experts on this board to give me a confidence boost about the likelihood of approval or possibly ideas on how to get to where we need to be to get a home.

 

 

The specifics:

 

We will probably have about 5-7k to put down without dipping into 401k.

We’re thinking homes in the 140-145k price range would be about right for our family.

State: IA, the eastern portion of the state. non-rural..If you can believe any part of Iowa isn't rural :smileywink:

 

Joint BK in filed April of 06 discharged in June 06

Lots and lots of baddies pre-BK.

 

Since BK

ME

Income: 55k,at current employer 2 years in Jan 09…same industry 15+ years

Scores as of last week: TU: 671, EQ: 679, EX: 669

No lates

1 paid collection, assigned to collections Nov 06, paid Feb 07

 

4 CC accounts

Total Balance of 600

Total Credit Limit of 11,500

Min payments for CCs-40 total

2 at a 0balance, 2 reporting balances

 

1 Auto loan

217/month new loan in March

 

THE BOSS aka the wife

Income: 50k,at current employer 8 years…same industry 10 years

Scores as of last week: TU: 643, EQ: 636, EX: 647

No lates

1 paid collection, assigned to collections Nov 06, paid Feb 07

1 paid collection from 2006, (have disputed because it should have been included BK)

 

4 CC accounts

Total Balanceof 1,300

Total Credit Limit of 5,100

Min payments for CCs-40 total

1 at a 0 balance, 2 reporting balances

 

1 Auto loan

235/month new loan in June

 

And if anyone has managed to read through this and still would like to respond, kudos to you...probably more detail than anyone would like to have about a fellow poster. 

Message Edited by jmbuehler on 11-25-2008 01:45 PM
Message 1 of 8
7 REPLIES 7
Community Leader
Super Contributor

Re: Are we ready to jump into the mortgage pool yet?

You've provided a perfect amount of info, remember the more info you share means the advice you get back will be that much more accurate.

 

Overall you guys seem to be pretty well qualified.  Your debt to income ratio is very low, you appear to have reserves available in a 401k, and even though there is a negative mark after the BK since you have other compensating factors the liklihood of getting an automated approval would be excellent.

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 2 of 8
Member

Re: Are we ready to jump into the mortgage pool yet?

Thanks and a what may be a silly follow up question.

 

Is there a website I can go to try to get an automated approval or do I have to find a lendor first?  

 

We don't have a home in mind as yet.  If possible I wanted to pre-qualify, can you do that with FHA?

 

When I try to google FHA loans I get so many sites that make me a little leery, so I have a great appreciation for the advice I get here.  

Message 3 of 8
Valued Contributor

Re: Are we ready to jump into the mortgage pool yet?

You can not do that yourself

FHA does allow you to get an automated approval before shopping - I wouldnt suggest doing it any other way

The web is a big mystery - when shopping you need to know if you are dealing with a lender or a lead generator

The second is a site where you will put your info and they will sell it

The problem with this is many times those people will sell it and you can see how quickly your info can spread.

You know the whole when banks compete - well sure but not when they do it through that website

Ask for referrals from friends or family or find someone you can trust that can do loans in your state

 

Brian

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Message 4 of 8
Community Leader
Super Contributor

Re: Are we ready to jump into the mortgage pool yet?

Unless I knew the reputation of the website or the company behind the website, I wouldn't be caught dead putting my personal info into a website I have googled out on the web.  Referrals from family, friends, co-workers, real estate agents, etc. are usually the best way to go about finding a loan officer.
Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 5 of 8
Member

Re: Are we ready to jump into the mortgage pool yet?

We talked to a real estate agent who used to work for me a few years ago, she gave us a referral for an FHA approved lender.  I'm happy to say that we passed through automated approval without a hitch.  

 

Thanks to all of you that contribute to this board! If it weren't for all of you I don't think I'd have ever known about FHA or felt confident enough in our finances to think about applying for it.  

 

On to house hunting for us. It's interesting last year we had talked to a broker who said he could get us approved but the interest rates were sky high.  Having an FHA rate is allowing us to look at homes that there was no way we could have afforded last year.

 

Thanks again to all, the help I've received here is invaluable. 

 

 

Message 6 of 8
Established Contributor

Re: Are we ready to jump into the mortgage pool yet?

I might add one comment here. Your scores are pretty good, but you would both see at least a small-medium jump in your FICO score if you only let one credit crd report a balance. Ideally you want fewer than half of your credit cards reporting. As you both have 4 credit cards that means one 1 can report (each) to be less than half. The easiest way to do this is to pay one card of before the statement reporting date. Of course you would also see a jump in score if you could get your credit card balances below 7% utilization or so (if possible of course).

Good luck with your home purchase!! 

TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

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Message 7 of 8
Community Leader
Super Contributor

Re: Are we ready to jump into the mortgage pool yet?


@jmbuehler wrote:

 I'm happy to say that we passed through automated approval without a hitch.  

...

Thanks again to all, the help I've received here is invaluable. 


You are welcome and congrats on the approval!

Helping people with mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Orange County, CA and lending in all 50 states
Message 8 of 8
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