Qualification Questions

Anonymous · ‎04-28-2009

I want to buy a house. I'm looking for a preapproval around late July, early August. I'm interested in the amount I would qualify for?

1. My EQ FICO is 732. My TU FICO is 662. EX??? The major difference is that on my TU, I have a collection for a Sprint bill for $733, due to fall off May 2010. The collection only appears on my TU, not EQ or EX. So, I'm guessing my EX score should be higher than my TU. At any rate my midscore is at least 662.

2. Annual income is $47,892 from full time employer. An add'l $6,480 annually for child support.

3. Monthly debt payments; car note $441, SL $149, cc's $100/minimum pymt

4. I"ve been with the same employer for 3 years

5. I currently have $3,800 saved. I can save approx $1,000/mo.

6. I'm looking for a single family home for my primary residence.

I just want to know how much I can get approved for?

Also, I am due for a $165/mo raise in June 2009. Does this factor into my income at all?

TIA!

Message Edited by anythingispossible09 on 04-28-2009 12:29 PM

Anonymous · ‎04-28-2009

When was your last payment on the Sprint bill? If that was more than 2 years ago, it's out of the statue of limitation, and they can't sue you for it. That means they will be willing to make any sort of deal, and you can offer them a small settlement amount to be considered paid in full. However, in my experience, some very old collection accounts will just go away if you sent them a request for debt validation. You have enough time to go through that process if you start now. Read the "Rebuilding your Credit" forum and you will learn all the details.

Anonymous · ‎04-28-2009

@Anonymous wrote:
I want to buy a house. I'm looking for a preapproval around late July, early August. I'm interested in the amount I would qualify for?

1. My EQ FICO is 732. My TU FICO is 662. EX??? The major difference is that on my TU, I have a collection for a Sprint bill for $733, due to fall off May 2010. The collection only appears on my TU, not EQ or EX. So, I'm guessing my EX score should be higher than my TU. At any rate my midscore is at least 662.

2. Annual income is $47,892 from full time employer. An add'l $6,480 annually for child support.

3. Monthly debt payments; car note $441, SL $149, cc's $100/minimum pymt

4. I"ve been with the same employer for 3 years

5. I currently have $3,800 saved. I can save approx $1,000/mo.

6. I'm looking for a single family home for my primary residence.

I just want to know how much I can get approved for?

Also, I am due for a $165/mo raise in June 2009. Does this factor into my income at all?

TIA!
Message Edited by anythingispossible09 on 04-28-2009 12:29 PM

Assuming $2K/year taxes, $2K/year homeowner's insurance and that you'll have $6,800 saved up by July (you said you could save $1K/month), that would put you at anywhere between $120-136K.

If you have less than 10 months on your auto or student loan, that would give you w-a-a-y more play considering that it would decrease your debt-to-income ratio (since loans with less than 10 months repayment left aren't counted in DTI).

As for the collection, don't sweat it. Most lenders won't even ask if you intend on paying it. And if they *do* you need to find another lender, cause that's BS.

As for the raise, I think it would be averaged in. You'll have to provide at least 2 pay-stubs when you provide your documentation for underwriting. So they'll notice the raise -- especially if you time it in such a way that BOTH pay-stubs reflect the raise.

Anonymous · ‎04-28-2009

Just to add: If you bumped off the $441 car note (meaning, if you apply when you only have ten or less months on the terms), you'd qualify for $181-211K.

Also, just to clarify, my estimates for property taxes and homeowner's might be on the high side ... that's how it is in our neck 'o the woods, but that doesn't seem to be common. If the taxes and insurance are oodles lower, you'll qualify for MORE (roughly about $30K more house).

Anonymous · ‎04-28-2009

Thank you for your responses.

In response to the old debt, it is a cell phone bill, therefore it is out of SOL. I did DV on 4/20. I have yet to hear a response. Glad to know that this won't be an issue either way.

In response to the car note, I have 14 more payments. That's good to know, in four months it will not be counted as part of my DTI.

I live in Chicago. The property taxes are pretty high in the surrounding suburbs from what I hear.

Anonymous · ‎04-28-2009

@Anonymous wrote:
Thank you for your responses.

In response to the old debt, it is a cell phone bill, therefore it is out of SOL. I did DV on 4/20. I have yet to hear a response. Glad to know that this won't be an issue either way.

In response to the car note, I have 14 more payments. That's good to know, in four months it will not be counted as part of my DTI.

I live in Chicago. The property taxes are pretty high in the surrounding suburbs from what I hear.

I've been looking online in Lake County, IL and it seems like taxes range from 3K-6K per year in 2007 from what I've seen. I don't know what the other counties surrounding Chicago, or inside Cook Co are, but my guess is they'll be at least in the same range.

Anonymous · ‎04-28-2009

@Anonymous wrote:
@Anonymous wrote:
Thank you for your responses.

In response to the old debt, it is a cell phone bill, therefore it is out of SOL. I did DV on 4/20. I have yet to hear a response. Glad to know that this won't be an issue either way.

In response to the car note, I have 14 more payments. That's good to know, in four months it will not be counted as part of my DTI.

I live in Chicago. The property taxes are pretty high in the surrounding suburbs from what I hear.

I've been looking online in Lake County, IL and it seems like taxes range from 3K-6K per year in 2007 from what I've seen. I don't know what the other counties surrounding Chicago, or inside Cook Co are, but my guess is they'll be at least in the same range.

No offense, but are you *serious?!!* $3-6K? Crap-on-a-stick!! That's heinous!!

We're at (estimated -- we're hoping it'll end up lower) $2100/year for taxes. That's pretty par for this area, though. I really thought we had it bad since our local gubmint is fairish corrupt and over-spend-y.

What are you guys like for homeowners? I'll bet we have you beat there, for sure. Our policy is $2100/year (with Wind Mitigation Certification) to $2900/year (without wind mitigation). I get sooooo jealous when I hear people on here saying that their HI is like $400/year!!!

ETA: For $6K/year in taxes, I'd expect the fricking tax assessor to come over and *personally* mow my lawn!!!

Message Edited by Wonderin on 04-28-2009 10:30 PM

WannaHouse · ‎04-28-2009

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
Thank you for your responses.

In response to the old debt, it is a cell phone bill, therefore it is out of SOL. I did DV on 4/20. I have yet to hear a response. Glad to know that this won't be an issue either way.

In response to the car note, I have 14 more payments. That's good to know, in four months it will not be counted as part of my DTI.

I live in Chicago. The property taxes are pretty high in the surrounding suburbs from what I hear.

I've been looking online in Lake County, IL and it seems like taxes range from 3K-6K per year in 2007 from what I've seen. I don't know what the other counties surrounding Chicago, or inside Cook Co are, but my guess is they'll be at least in the same range.

No offense, but are you *serious?!!* $3-6K? Crap-on-a-stick!! That's heinous!!

We're at (estimated -- we're hoping it'll end up lower) $2100/year for taxes. That's pretty par for this area, though. I really thought we had it bad since our local gubmint is fairish corrupt and over-spend-y.

What are you guys like for homeowners? I'll bet we have you beat there, for sure. Our policy is $2100/year (with Wind Mitigation Certification) to $2900/year (without wind mitigation). I get sooooo jealous when I hear people on here saying that their HI is like $400/year!!!

ETA: For $6K/year in taxes, I'd expect the fricking tax assessor to come over and *personally* mow my lawn!!!
Message Edited by Wonderin on 04-28-2009 10:30 PM

Just had to add fuel to the fire! LOL

Our taxes on 100K house is 2500.00 a year and our homeowners is 300 a year.

We're in Wisconsin. Our state SUCKS when it comes to high property taxes!!

Kathy

We are finally homeowners!!

Closed May 5th-30 yr fixed at 5.25%.