Hello everyone. I have been visiting the forums for quite some time and I decided to join. I appreciate the wealth of information I often find here. My fiancé and I are trying to get a mortgage within the next 6-7 months. We have done our due diligence over the past year and would prefer to proceed with navy fed or nc state employees credit union. We were preapproved with ncsecu last year, but the process was rushed and things didn't feel right, so we decided to continue to rent. We also want to rate shop with the traditional lenders as well just to cover all bases. We both have a significant amount of student loans, so that really limits our options in terms of purchase price when it comes to fha and conventional as they will tack on 1% of student loan balances to dti ratio. My stats:
I am almost 2 years into my rebuild with a mid score of 596 after some health issues ruined some things for me in the past.
Credit utilization is at 1% across two cards.
My aa of a: 14 yrs
4 collection acts that will be paid prior to preapproval.
1 charge off from a target card that has been paid but has not reported as paid yet. (This is the Card that is bringing my mortgage scores down)
No late payments in 2yrs
fiancé's credit score is at 650.
3 paid collections, and 1 recent late payment.
what options do we have as far as getting preapproved? What is the likelihood of us clearing underwriting and closing a loan based on the info above? Income won't be an issue. Also, could anyone recommend any lenders to us that could possible work with this type of file during COVID? We don't mind waiting another year or two to let time do it's thing on our scores, but if it's possible to get a home now we would like to do so. Thank you!
