Is it too soon?

[cequia]

Have an appointment with my loan officer tomorrow and knots in my stomach.  I want to know my chances at getting pre-approved before I go authorizing credit checks all wily-nilly. I'm nervous that I maybe we wait for a higher score and let the baddies age longer. I'm also nervous that we are doing this too soon. My lease isn't up until July. So I guess I'm just plain scared.

Lender requires 600/ Alternate bank wants 620.

Facts:            My mid-score 647; DH's 680

Income:         7k per month gross; both working 3 years at current jobs

Debt: Auto:    $446/month

           Cap1:  $15 minmum (67 owed/ 500 limit) open 6 months

           HSBC: $15 minimum (144 owed/ 500 limit)  open 6 months DH's Card (not on my credit)

           Sallie Mae: $96/month

Baddies: BK-7 discharged 08/07 (due to job loss while i was pregnant)

                 2008 Judgment for dr's delivery fee shortly after job loss

                 3 lates for my student loans in 2008 (thought they were in forbearance)

I'm aware that the baddies port BK are bad, but do I have a decent shot at actually closing the loan?

Home will be in Prince William County, VA; SFH are around 300k,  very little price shock as my rent is 1675, no utilities included

Saved 10,500 for down payment, so far, able to save more each month

Seller to pay closing cost up to 3%

May have one month of reserves, more depending on when we close

Please be gentle as I already am on the verge of an anxiety attack, suicide and binge drinking

[Anonymous]

A couple things.  You sau very little price shock but are looking at close to 1000 more per month when all is said and done.  That is not exactly little.  I could be wrong on that but I always though that taxes in that area were a bit on the high side.  I would expect your monthly payment at 300K to probably fall somehwere in the 2300 to 2600 depending ont he taxes/etc.  That is not a huge price jump but it is still there none the less.

And the point you brought up in the post is going to be the issue.  You have a judgement and several lates post BK.  Now it appears that  since then it has been clean so that is not necessarily the end of the world/  IT is hard to tell until an UW actually gets their hand on your file.  Post BK lates can be a deal killer anytime.  Having re-established solid credit as well as having some reserves and low DTI can help, but it is always a bit of a tough sell.

One other question is whether or not the judgement has been paid and how much it is.  IT will have to be paid.

[cequia]

Taxes are higher than most other places, but taxes for the properties I have been eyeing are about $3600/year. That's still affordable for us.

Judgment has been paid.

I'm aware that it will be a tricky feat, but the question is can it be done?

[Anonymous]

it is physically possible, but there is no way for us to give you a more definite answer.  Post BK lates are usually a deal killer (especially stuff like judgements), but with 2-3 years solid payment history since then, you are getting into territory where you can argue it.  So it is going to depend on alot of factors that we simply can not guess at.  I do know one thing... I would not make any moves until and underwriter has seen the file, not just the LO.  This is exactly the type situation an LO will say yes to hoping that the UW will overlook it, only the get squashed in underwriting.  So demand a fully underwritten pre-approval.  That is still not a golden ticket, but since the UW will have at least made a cursory glance at your situation, it gives you a bit of comfort.

[cequia]

TURNS OUT MY TIMING IS PERFECT!!!!!!

It's been smooth sailing, so smooth it made me nervous. We were approved by AU, but I was still apprehensive, prepared for the worst. Went out the next day and put in an offer after a total of TWO hours of house hunting. Received nominal counter the following day and happily accepted. File went to UW on Monday and today we received the call that WE ARE CLEAR TO CLOSE. House has been inspected and appraised without any hiccups. I HAVE OFFICIALLY STARTED THE COUNTDOWN TO MOVING DAY.

It's like someone finally pressed the easy button.

Lesson learned: Don't unneccessarily stress yourself and not all loan officers are evil.

[JGWantsAHouse]

Congrats! Keep us updated.  I'm in looking to apply in the next few months!