Home loan advice

[Anonymous]

I am planning on buying a first home in may of 2016 and would like advice on, qualification, loan types I should consider, and related credit advice.

I am not ex-military

1. Mortgage Credit Scores:  

640

627

620

2. Credit Negatives:

Collection: JNR adjustment. I have disputed the crap out of this one because it is really not valid. its for $765 and unpaid. First reported 3/2010.

Last late payment: 9/2014 

Credit utilization: 93% ( I will drop all this off to $0, I actually have it in cash)

3. Gross Income.

$73000 primary job +

~ $12000 a year in investment income

4. Source of income.

Full time employment

5. Monthly debt payments. 

$750 Rent

$518 Student loans

$290 Car payment

$80 insurance

$244 Health insurance

$120 misc. utilities

6. Employment 

Full time - 2 years

7. Assets/Reserves.

$10,000 cash

8. Location

Tennessee

9. Property Description: 

Single family, 3bd 2 bath

10. Property Value. 

$135,000

11. Occupancy. 

Me, GF, and daughter. Gf not an applicant, but $35,000 in income

12. Transaction Type

purchase

[cartwrna]

Health insurance isn't a factor in DTI for monthly payments when it comes to a mortgage. Either are utilities or insurance. They only look at things such as loan payments, CC payments, etc. Stuff that typically shows on your credit report. I believe you would be looking for an FHA loan with current scores. The collection shouldn't be an issue, as long as their isn't a lender overlay requiring it be paid since it's less than 1k in total collections. Your income with current debt payments would support a 135k loan with ease. You look pretty good to me! I would make sure that your utilization reports the $0 balance before applying as it will also greatly improve your score (although score is fine where it is).

[Anonymous]

Hey, thanks alot!