Need a good place to get started

[Anonymous]

Hello everyone, this forum was IMMENSELY helpful for rebuilding my credit, and now I'm moving on to applying for my first morgage (hopefully).

I live in a very expensive area in Colorado (Fort Collins-80525), so most of the houses we've looked at/are interested in, are 400-450k.

Here's my situation...

-My income: 105k, 8 years on the job (IT/Software W-2 work)
-MyFICO Mortage scores: All ~660
-One car loan @ $400/month
-No credit card debt.
-Not a lot of cash on hand, would be able to do 15-25k down.

My wife's credit is stronger than mine, at ~700, however she does not have income, and the auto loan does not have her on it.

I'm really wanting to apply for a mortage just to see where I stand, as if I was able to qualify for a mortgage, we would be ready to by a house immediately. However I don't want to negatively impact my credit score.

Does anyone have any suggestions on a lender that might be fairly easy for me to 'dip my toe in the water'?

Thanks again everyone!

[JVille]

Best suggestion is to sit down with your Loan Officer at your local Credit Union Or neighborhood bank. They will be able to explain what’s available and what be most suitable for situation.

[VALoanMaster]

Hi Alexharrisdcj,

Horsetooth reservoir is one of the best places to go camping. That & pork green chili are what I miss the most about CO.

Based on the info you've provided, you should easily qualify for an FHA mortgage. The down side is the FHA loan limit in Larimer County is $437,000. That puts your purchase price around $445,000 minus your down payment of 3.5% ($15,750) plus the FHA upfront funding fee puts your loan amount at $436.939.

Colorado is still a seller's market right now & that means cash & conventional offers are going to get first consideration with FHA & VA bringing up the rear. There are a couple of things we can do to "strengthen" your position to help you better compete with conventional offers.

The other option would be to work on raising your scores in order to go conventional.

[Anonymous]

Optimize your credit situation with AZEO then you can think about prequalification, however, given that you have no util, your scores seem a bit low; do you have derogs?  If so, which?

[homeloanexpert]

When I receive a loan application and the borrower is above 640,  I will always run the AUS (automated underwriting system) and try to get them approved with the best available program. In this case, Conventional would be best based on the real estate market of your targeted region.

If I can't get it to approve it, then I would run the Credit Analyzer on their credit and see where I can bring up their scores. In most cases a few c/c pay downs can work or maybe piggyback on a spouses's credit card or two can do the trick. There are  several solutions, it just depends on your timing. FHA can always be your fall back loan.

Hook up with a seasoned Loan Officer who really knows credit, they can help you. Best recommendation is, start as soon as you can.

Best wishes to you!