First time home buyer need help

[Anonymous]

Hello fico forum i am new on here as far as posting but have been on here gathering as much info as i can but i still need your guys and gals expertice  First of i am 24 getting married in a few months and still looking for a house has become very stressfull as it gets closer and were not sure wether to rent or just buy our 1st home.

My income last year was 36k

my debts:

Auto loan 22k

credit cards: 5k the highest amount owed is a 2600 cc i have with my cu

her income 12k

auto loan 16k

farmers furniture 4k she got it under her name for her mom so her mom pays it but still shows up

she has 4 collections that have not been paid 

honestly im not sure where to start as far as her collections go should we pay them or not??

we really want to get a house this year but when you look at everthing on paper to me it doesnt look possible .

we also have saved up 3k for a downpayment or incase we just end up renting in our area it just seems more reasonable to  buy as the rent prices are going up every month. Should i just pay down some debt and try to get the loan by myself or should we try to fix my fiances and do it together ???

The houses we were looking at ar around the 100k to 150k  range here in north georgia in more rural areas

My credit score on ck 675 and on my wells fargo fico score it says 702 no sure wether to believe it

Her ck score is 599

[jlitnns]

I would find a mortgage broker and sit down with them. They will be able to give you more accurate info than anyone in this forum because they will be able to see your actual financial situation. By the looks of things, if you want your future wife to sign she will need to clean up the collections account and get her score up into the 630 range, that may differ depending on where you are at and what type of program. 

Your debt to income will be an issue. Is there a reason that your fiance holds the debt for her mother and how soon can her mother pay that off?

Last, get rid of the credit card debt and maybe 1 of the 2 car loans, that will help your DTI and qualify you for more on your income. Depending on where you live $48k is not a lot or may be just enough, again, depends on the housing prices in your market.

Congrats on getting married. You guys are young and maybe will have to wait a year but buying a home is exciting!

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[JVille]

Please provide info on each collection. Dates, amounts and to whom (medical etc). What state did she live in when the collections started (state laws vary).

[Anonymous]

Doing the math roughly, you might have a problem in terms of income and debt.  For example, your wife's income is 12k and her auto loan is 16k?   Unless she plans on increasing her income soon, I don't see how putting her on the loan will help as you have to factor in her credit profile.  But definately talk to a mortgage lender and decide from there.

However if I were in your shoes and 24 years old, I'd rent for a bit, reduce debt, clean wife's credit profile etc. before thinking of getting a mortgage.

All the best.

[Anonymous]

Well there are many different types of mortgage loans that could help you and your situation. As far as putting your fiancee on the loan, there really is no reason too unless you will be getting a new job with a better income. If not there is no need to be taking that risk. What i would do is sit down with a mortgage lender and go over your situation and have them explain the options you have. From there you can determine what would work better for you, and get you closer to purchasing your new home.