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First time mortgage - hoping I'm covered for everything

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Valued Member

First time mortgage - hoping I'm covered for everything

First time buying - so I'm nervous (by nature)

 

My annual income 150,000

Spouse income 35,000

 

DTI is calculated at around 37% (including the potential mortgage)

 

Current debts

Car loan - 24K balance

Motorcycle loan 7K balance

Credit cards 23K balance (utilization is around 30%)

Lending club 9K (monthly payment 337)

Lending club 5 K (8 payments left)

 

Price of house 500K

Downpayment in cash 20% (100K)

Approx closing cost 11K

 

Cash/Investments available (133K - of which I'll need to use 111K for downpayment and closing, leaving approx 22K)

 

Mid mortgage scores are 685.  The lending company told me that ran some scenerios and we should be at 700 mid score by the next time the repull credit (mid Dec) because some balances we paid off have not been reporting to the CRA.  I have payment confirmations but since the statements are closing within the week, they should report soon.  According to their simulators, mid score should be 700  (FICO8 is all around 745 and I know that's not the score they use).  I have approx 3K of payments we made on credit cards that haven't been reflected yet.  It seems like a big jump to 700 mid score with just that payment.  Current mortgage scores are EQ 681 Trans 685 EX 716.

 

I'm nervous because I had to sign a form for a tax transcript for the past 3 years.  We've always owed when we filed.   We have no outstanding tax payments, but my 2017 return which had a balance due, i just paid off November 20.  I checked my account with the IRS and it shows zero due.  Just nervous they will question why I had an installment agreement with the IRS?  Either way - it's paid in full.  Not sure what the tax transcripts show and if it will show the balance has been paid?

 

Do you see any issues.  We are scheduled to close early January.  I hoping everything is moving along correctly as we've already paid a decent amount in earnest money with the P&S agreement.

 

Mortgage company told me we can use credit cards until we close.  I am fine with that, but i have some automatic bills (cell phone, insurance etc) that hits my amex automatically.  My plan is to make sure it's paid before the statement cuts so it continues to report a zero balance.

 

 

Starting Scores 5/24/16 EQ 649, TU 648, EX 662
Current score (fico8) 1/7/18 EQ 759, TU 752, EX 727

4 REPLIES 4
Valued Member

Re: First time mortgage - hoping I'm covered for everything

** That should say, mortgage company said we can NOT use credit cards (not can use....that was a typo)

Starting Scores 5/24/16 EQ 649, TU 648, EX 662
Current score (fico8) 1/7/18 EQ 759, TU 752, EX 727

Message 2 of 5
Community Leader
Senior Contributor

Re: First time mortgage - hoping I'm covered for everything

OP,

I don't think there will be any issues on the transcript regarding owing taxes. I think the main reason for the transcript is to veryify that you filed your tax returns for the last 3 years and that the salary you stated concurs with the transcript. Also, even if you were still in an installment agreement, as long as a minimum of 3 or 4 payments had been made, you would still have been good to go.

 

The property taxes must be really low where you're purchasing a home. I say this because I am surprised that the closing cost is only $11,000.

 

Congrats on being a first time home buyer.

GOALS: Garden til DEC 2020 and 800 Club



Scores
APR 2019: EX 787, TU 789, EQ 781
JAN 2019: EX 794, TU 783, EQ 801
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnate $25K || NFCU CashRewards $20K || Macy's $20K || Discover IT $15.7K || NFCU CLOC $15K || NFCU Platinum $12.5K || AmX ED $11.5K || CitiCostco $7K || CitiDC $6.3K ||
Message 3 of 5
Valued Member

Re: First time mortgage - hoping I'm covered for everything

yes taxes are around 5,500 

Starting Scores 5/24/16 EQ 649, TU 648, EX 662
Current score (fico8) 1/7/18 EQ 759, TU 752, EX 727

Message 4 of 5
Valued Member

Re: First time mortgage - hoping I'm covered for everything

Mortgage application was sent to underwriting a few days ago.  Nervous because I've heard of things coming up during underwriting.

 

Credit update:  Mid Mortgage scores are 711.  Down payment is 20% cash.

DTI 38% (includes potential mortgage).

Scheduled to repull credit again mid December.

Closing first week in January if not sooner.

 

How long does underwriting normally take?

 

Starting Scores 5/24/16 EQ 649, TU 648, EX 662
Current score (fico8) 1/7/18 EQ 759, TU 752, EX 727

Message 5 of 5