Is now the time to apply?

[sassymomof2]

My lease is up in June. I have to give 60 days notice. My rent is $871 and that does not include water. I have been on my job 3 years-income $59,000 W2. I get another $270 from my parents to pay student loans. I have been at my current residence 2 years. Credit: 694 TU 645 EQ (who knows about EX). Negatives: $1500 unpaid medical collections from 2007, paid judgment from 2009 (paid 4/2010), monthly debt $720. I have $1000 saved; applying for DP assistance of $4k; have $11k in my 401k. Wanting a single fam home in SC. Any suggestions??

[IOBA]

Pay off the CA.

What is the breakdown of your monthly debt?  (Type, amount, and maybe creditor)

[sassymomof2]

Thanks for the input! Debt: $127 -timeshare/$5800 bal $4 - credit card/$300 limit, $240 car /$ 9600 bal $350 student loans/$52000 bal

[IOBA]

My suggestions, based on new information - put off buying a house for a yr.

1.  Pay off CA.

2.  Pay off timeshare.

3.  Work to pay down car.

4.  SAVE!

Have you heard about snowballing your debt?  It works well, if you stick to it.   Put every penny you have into paying off your debt early.  Since the timeshare is the smallest debt, pay that one off first.   When I snowballed a debt, I would make 2-20 payments a month.   Every little extra went into the debt.  It made a difference.

A lender will look at DTI ratio.   Right now, if I did the numbers correctly, your DTI ratio is 15%.    Lenders dont' want to see it more than 25% (29-30%) including mortgage, escrow, and HOA (if you have one).    Delete timeshare payment, DTI ratio is 12%.

[frogfan12]

Add to your savings and pay off debts (i.e. medical collections). Ask for a pay for delete. In your case I'd wait for my scores to rise before applying for a mortgage. Resign your lease for another year, work on your credit, and then apply. That's my two cents.

[Scope27]

pm sent

[sassymomof2]

I am bumping my own post to send shout outs to MissMia and Scope to name a few! I decided to apply in January anyway because I felt my scores were strong enough. I am glad I did. I am officially a homeowner and I would not have been able to do it without the support of Myfico family. Thanks again & God bless!!

[MissMia75]

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@sassymomof2 wrote:
I am bumping my own post to send shout outs to MissMia and Scope to name a few! I decided to apply in January anyway because I felt my scores were strong enough. I am glad I did. I am officially a homeowner and I would not have been able to do it without the support of Myfico family. Thanks again & God bless!!

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As i have told you before you are very blessed and you followed your heart and not what some people here encouraged you to do which was to wait to build your scores higher.  Again, I am very proud of you becoming a homeowner... I will be next

lol

[IOBA]

sassymomof2 - Congratulations!  

[Familywantsahouse]

Congrats!