@Newbie2018 wrote:
Hello all,
I am currently considering purchasing a home through the first time home owner program.
A little about me. I am a single mother with three little ones. I have been with my job for 2 years. My income 2017 year was $16000 but upon getting a raise and transferring i now avg'd 32,000 for the year 2018. I make $3900 before taxes. I have credit cards:
Discover $750 of $750
Fingerhut $422 of $800
Bank of America $400 of $400
Tdecu $300 of $300
VS $160of $350
Amazon $563 of $600
reporting balances but all other credit cards are at $0. ( I can pay these down within the next few months not sure which method to use)??
Loans reporting:
DCU car loan $6300 with $275/month payments.
Sun Loan $500
DCU personal loan $250
Student Loan $2500 on defferment while im still attending school(plan on getting the other half of it this semester, will that look bad when direct deposited into my account)?
Collections:
World Finance -charge off but paid and now showing $0 set to drop off in July which i will see if i can get it off sooner
Common Wealth Finance $1863 -hospital
Paramount Recovery $556 -hospital
Alexander Rose - $2651- broken lease
My scores are EQ fico- 621
TU fico- 634
EX: 630
Other then the questions above i'd like to know:
1. What will be included in my DTI and how do i balance it out to goal DTI
2. Will the deffered school loans affect anything?
3. I have $4000 sitting in my savings which has been there only a few days.Do i need more of a downpayment possibly if so how much?
4. Will i need to pay off the broken lease and hosp. bills prior to getting the ball rolling ?
5. When would be an ideal time to start trying to get one, my lease is up in May.
6. What do i need to provide to the bank to start the process?
I dont want to start the process if i am not ready but i do need an idea of what i need to do next. Any help would be much appreciated. Sorry for the lengthy post.
With FHA general rule is 3.5% down of purchase price, then closing costs ( PMI, taxes, appraisal, insurance, etc).
With the little ones- do you received any child support?
Are the scores you wrote your FICO 8 scores, or are they the "mortgage" scores provided here? Lenders will use the "middle" score, of the 3 bureaus, toss out the highest and lowest score.
In preparing for a mortgage, the number of cards reporting a balance have an affect on those scores. Best to just let one card when the time is right to report a balance, a bank card at that, not a retail card. Of that, reporting only <8.9% of that ONE card's total credit limit is optimal for scoring, which affects your rates.
Derogs will suppress your scores horribly. How soon will the other two collections will age off? If you haven't paid on the past rental one, and it does need to be paid, if anyway possible to get a pay for delete will help. If it hasn't been reporting montly, and suddenly reports zero balance in Feb, it can possibly decrease your score.
Do not apply for any new credit.
Yes, you will have to document everything in deposits, and anything cash. Keep a paper trail here on out, as I needed to write reason why I deposited $60 cash mo. that my daughter gives me towards our family cell phone plan.
IMHO, I'd save more towards down payment and closing costs with your new income plus extra expenses, the inspection cost is on you, and if the inspection fails, you are out money. Factor in moving expenses, utilities. Work on the derogs to the best of your ability preferably for a pay for delete.
