HELP ME MORTGAGE GURU's

nastalgia · ‎04-10-2020

Hi Mortgage Gurus,

I'm an Intermediate credit builder on the way up but my Mortage scores sucks IMO.

ok so I randomly applied for a Mortgage loan about a month ago because my Girlfriend who is a real estate broker/Owner has been pressuring

me to buy this year. I got approved for $300K max in early Marwith two different lenders with various different rates and rates are very important to me. The credit scores are as follows

EQ FICO 8 - 688

EQ FICO 9 - 706

EQ FICO 5 - 639 (Mortgage score)

TU FICO 8 - 680

TU FICO 9 - 671

TU FICO 4 - 650 (Mortage score)

EX FICO 8 - 700

EX FICO 9 - 690

EX FICO 2 - 674 (Mortgage score)

LENDER 1 (Though my local CU)

$300K max 4.25% interest rate, 3.5% down, $20k at closing, loan will come with a PMI, FHA Loan

DTI at the time of pre-q - 42% (due to un-updated accounts, should be hovering around 27-32%)

Yearly income - $77536 ; Est. mortgage payment - $1660/mon

LENDER 2 (My Gf's mortgage loan officer partner)

$300K max 3.85% int rate, 3.5% down , $7k at closing with $8k NC downpayment assitance program, FHA Loan

DTI at the time of pre-Q - 42%

Yearly income - $77536; Est. payments - $1500

NC has scrapped their downpayment assistance program due to the uncertainty of the market due to CORVID-19 (SUCKS)

I have since decided to wait till Dec/Jan or may be even Feb to close on a home due to my high DTI% I have AU accounts I've taken myself off. Personal loan of $2860 I have to pay off or pay down significantly by Dec, Car loan $6550, student loan $29880 and a credit card debt of $4170/10700 (currently sitting at $11447/21447 due to AU accounts from my Gf), I have 10 CO accounts of $0 on my TU and EQ, 1 CO $0 on EX. All due to fall off my CR by Aug 2020 (EE) and Dec 2020

I am more concerned about how to grow my Beacon scores into the 700's so I can get competitive offers by Dec/Jan. How many of these loans I have to pay down or pay off to raise my Mortgage scores? I know how to grow my FICO8/9 because I have a better understanding of credit card UTI and CLI but no matter how many CLI I've gotten in the past 24 months my mortgage scores stays in the 600's

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NC_Mtg_Loaner · ‎04-10-2020

NC Housing Finance Agency has NOT cancelled their $8000 DPA program. Your income may be too high to qualify for some of their programs or your lender may no longer participate either...

Many lenders in NC have raised the criteria or suspended participation in the program for various other reasons -- primarily because of the status of the market place and the volatile condition of certain economic sectors. These same conditions have caused many lenders to modify their overlays which makes it tougher to qualify.

It might not be a bad idea to keep shopping around and talking to other mortgage lenders.

When did you have your credit checked and get pre-approved? Mortgage rates for your scenario seem to be lower than what you're stating now which naturally can impact affordability and approval.

Student loans....how much are you paying on your student loans per month? How much did you borrow altogether? In my experience, I have noticed that often times if your current student loan balance is greater than the original amount you borrowed, (additional fees get added during forbearance periods) it can weigh a lot more on your credit score until made some payments. This can be a huge variable as well which is why I ask the questions.

As long as your income isn't impacted by the Corona virus, you might see more inventory or less competition from fellow buyers in the near term as this market re-adjusts, so I'd stay poised and prepared to continue gauging the market as you work on that credit score. However, that's a good score and you have a good income, so keep on your toes.

__________________________________________________

Licensed NC Mortgage Loan Originator

nastalgia · ‎04-11-2020

You're correct the NC DPA is suspended but yes I did qualify for it through my 2nd lender. My student loan is lower than originally borrowed but it has been in a long admin forburance for a while and I just resumed paying $124 a month, it's currently only counting 1% towards my DTI. I was pre-approved on 3/13 and 3/15, the day after the feds dropped interest rates to 0%. My income is not impacted but I am currently on STDA recovering from surgery, I have decided to suspend shopping for a house as I want higher beacon scores and wanna know if there's a formula I can follow based on my numbers provided before I start back house shopping in Dec as I don't want the current rates offered and oh my savings are depleted but I do have some liquidating possessions I can sell off for cheap to get a healthy savings

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NC_Mtg_Loaner · ‎04-11-2020

@nastalgia wrote:
You're correct the NC DPA is suspended but yes I did qualify for it through my 2nd lender. My student loan is lower than originally borrowed but it has been in a long admin forburance for a while and I just resumed paying $124 a month, it's currently only counting 1% towards my DTI. I was pre-approved on 3/13 and 3/15, the day after the feds dropped interest rates to 0%. My income is not impacted but I am currently on STDA recovering from surgery, I have decided to suspend shopping for a house as I want higher beacon scores and wanna know if there's a formula I can follow based on my numbers provided before I start back house shopping in Dec as I don't want the current rates offered and oh my savings are depleted but I do have some liquidating possessions I can sell off for cheap to get a healthy savings

PLEASE NOTE THE NC HFA DPA IS NOT SUSPENDED.

You might be seeing a lower score is you are 'just now' getting back to paying your student loans from a long period of forebearance. In a few more months, yes you might see higher scores.

It's also possible that you might need some months' worth of reserves on hand for your mortgage loan to be approved. Reserves aren't always required and I've never seen a loan been denied because someone had too many....

And lastly, and this question I am asking is for a friend; do you mind if I ask what you don't like with today's rates?

__________________________________________________

Licensed NC Mortgage Loan Originator

Anonymous · ‎04-11-2020

nastalgia · ‎04-22-2020

@NC_Mtg_Loaner wrote:
@nastalgia wrote:
You're correct the NC DPA is suspended but yes I did qualify for it through my 2nd lender. My student loan is lower than originally borrowed but it has been in a long admin forburance for a while and I just resumed paying $124 a month, it's currently only counting 1% towards my DTI. I was pre-approved on 3/13 and 3/15, the day after the feds dropped interest rates to 0%. My income is not impacted but I am currently on STDA recovering from surgery, I have decided to suspend shopping for a house as I want higher beacon scores and wanna know if there's a formula I can follow based on my numbers provided before I start back house shopping in Dec as I don't want the current rates offered and oh my savings are depleted but I do have some liquidating possessions I can sell off for cheap to get a healthy savings
PLEASE NOTE THE NC HFA DPA IS NOT SUSPENDED.

You might be seeing a lower score is you are 'just now' getting back to paying your student loans from a long period of forebearance. In a few more months, yes you might see higher scores.

It's also possible that you might need some months' worth of reserves on hand for your mortgage loan to be approved. Reserves aren't always required and I've never seen a loan been denied because someone had too many....

And lastly, and this question I am asking is for a friend; do you mind if I ask what you don't like with today's rates?

Thanks for the explanations, I really appreciate it. I found out I currently don't qualify for NC DPAP because of my current income, COVID changing a lot of loan writting is my understanding. But to answer your question, What I didn't like about my loan rates and estimates is that my monthly payments are way above my prefered payment ranges. I prefer not to get into a mortgage right now when there might be a recession brewing. I prefer to wait this out, so next year it is.

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Revelate · ‎04-23-2020

@nastalgia wrote:
@NC_Mtg_Loaner wrote:
@nastalgia wrote:
You're correct the NC DPA is suspended but yes I did qualify for it through my 2nd lender. My student loan is lower than originally borrowed but it has been in a long admin forburance for a while and I just resumed paying $124 a month, it's currently only counting 1% towards my DTI. I was pre-approved on 3/13 and 3/15, the day after the feds dropped interest rates to 0%. My income is not impacted but I am currently on STDA recovering from surgery, I have decided to suspend shopping for a house as I want higher beacon scores and wanna know if there's a formula I can follow based on my numbers provided before I start back house shopping in Dec as I don't want the current rates offered and oh my savings are depleted but I do have some liquidating possessions I can sell off for cheap to get a healthy savings
PLEASE NOTE THE NC HFA DPA IS NOT SUSPENDED.

You might be seeing a lower score is you are 'just now' getting back to paying your student loans from a long period of forebearance. In a few more months, yes you might see higher scores.

It's also possible that you might need some months' worth of reserves on hand for your mortgage loan to be approved. Reserves aren't always required and I've never seen a loan been denied because someone had too many....

And lastly, and this question I am asking is for a friend; do you mind if I ask what you don't like with today's rates?
Thanks for the explanations, I really appreciate it. I found out I currently don't qualify for NC DPAP because of my current income, COVID changing a lot of loan writting is my understanding. But to answer your question, What I didn't like about my loan rates and estimates is that my monthly payments are way above my prefered payment ranges. I prefer not to get into a mortgage right now when there might be a recession brewing. I prefer to wait this out, so next year it is.

Oh well, rates aren't going to go down appreciably from where they are today. End of the day though getting more financially righteous in the uncertain times isn't something I would argue against. In my case even if the new place declines by 20%, whatever, it's long term and I need a place to stay. One month in an Airbnb now, blah, I want my own place again.