Question about balance transfer for DTI

[Anonymous]

I called NFCU this morning just to get an idea of what I might qualify for and what work I would have to do to get qualified. My target price is around 200k or less but Id like to qualify up to 250k just to have some flexibility. His advice was for my income level (74k) it would be pushing the max for me to qualify for 250k and his advice was to try to lessen my monthly debt obligations.My overal utilization is 19%. My biggest payment other than my car is my Care Credit account. I had 4k worth of dental work done and currently am on a 0% interest 24 month plan but this payment is $167/month.

I'm hesitant to move this balance because I'm not paying any interest but if I moved it my minimum payment would be a lot lower...any advice?? I'm new to this. I could just leave it as-is since I'm not planning to go up to 250k anyways...it was just cushion.

Thanks!

[StartingOver10]

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@Anonymous wrote:

I called NFCU this morning just to get an idea of what I might qualify for and what work I would have to do to get qualified. My target price is around 200k or less but Id like to qualify up to 250k just to have some flexibility. His advice was for my income level (74k) it would be pushing the max for me to qualify for 250k and his advice was to try to lessen my monthly debt obligations.My overal utilization is 19%. My biggest payment other than my car is my Care Credit account. I had 4k worth of dental work done and currently am on a 0% interest 24 month plan but this payment is $167/month.

I'm hesitant to move this balance because I'm not paying any interest but if I moved it my minimum payment would be a lot lower...any advice?? I'm new to this. I could just leave it as-is since I'm not planning to go up to 250k anyways...it was just cushion.

Thanks!

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^^^How much is the car payment?  That one is probably larger than the dental payment. Is there anything you can do with the auto loan? Refi possible? How much do you owe and what is it worth?

[Anonymous]

I don't think much can be done with the car payment. I got the car new in May 2016. The payment is $496 refinanced with Penfed in Oct at 5%. Amount owed is around 28k.

[StartingOver10]

You are probably right - unless you can refi to a lower payment.  What is your mortgage score?

It really does sound like the LO was telling you that there is a DTI issue rather than a score issue though. If you are only going for a $200k house, why do you need a $250k pre-approval?  Have them put together the pre-approval based on a realistic payment for you. Don't spend more (even on paper) than what is comfortable for you to afford. 

[Anonymous]

Not sure about my mortgage scores...I've been too cheap to pull them. I was going to ask nfcu for them when they pulled. But my FICO 8 scores are listed below and this is my first house so there aren't any mortagage accounts on my credit report. He did say I would be fine at 200k... I guess there is no reason to stretch because I wouldn't be willing to go much over that anyway... I just wanted a cushion because no matter what your budget is realtors seem to always show you something you fall in love with over your budget.

Experian	Equifax	Transunion
676	665	667

[StartingOver10]

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@Anonymous wrote:

Not sure about my mortgage scores...I've been too cheap to pull them. I was going to ask nfcu for them when they pulled. But my FICO 8 scores are listed below and this is my first house so there aren't any mortagage accounts on my credit report. He did say I would be fine at 200k... I guess there is no reason to stretch because I wouldn't be willing to go much over that anyway... I just wanted a cushion because no matter what your budget is realtors seem to always show you something you fall in love with over your budget.

Experian	Equifax	Transunion
676	665	667

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No, if you have a Realtor that does this - find another one.  I'm a Realtor and we have the budget discussion early on (first thing). It is important to establish that you are only willing to pay $X.  I find the issue is sometimes the buyer doesn't like the selection available at the price point they choose so they want to see that $250k (for example) home and negotiate to a $200k price   Not happening in a sellers market. 

Have a frank discussion with your Realtor. If they won't get on board with your budget, find another one.

EDIT:  FICO 8 scores bear no relationship to FICO mortgage scores.  Check your mortgage scores so you know ~ 

[Anonymous]

Thank you... that is great advice! I don't have a realtor yet. Once I start looking I will be firm.

Is there a way to get your mortgage scores besides paying for them? Maybe a trial? It looks like its $60 here on myfico.

Thanks again for the guidance!

[StartingOver10]

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@Anonymous wrote:
Thank you... that is great advice! I don't have a realtor yet. Once I start looking I will be firm.

Is there a way to get your mortgage scores besides paying for them? Maybe a trial? It looks like its $60 here on myfico.

Thanks again for the guidance!

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There are only two ways to get your mortgage scores:

1) have a mortgage lender pull it - but then that is a hard inquiry

2) pay for them here - it is a soft pull but it costs $60 unless you get a discount code (when available)

Personally, I would rather have the soft pull and not the hard inq, 

[ShanetheMortgageMan]

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@StartingOver10 wrote:

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@Anonymous wrote:
Thank you... that is great advice! I don't have a realtor yet. Once I start looking I will be firm.

Is there a way to get your mortgage scores besides paying for them? Maybe a trial? It looks like its $60 here on myfico.

Thanks again for the guidance!

---

There are only two ways to get your mortgage scores:

1) have a mortgage lender pull it - but then that is a hard inquiry

2) pay for them here - it is a soft pull but it costs $60 unless you get a discount code (when available)

Personally, I would rather have the soft pull and not the hard inq, 

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Can you do the monthly trial at $30/mo and cancel before going into the 2nd month?  http://www.myfico.com/products/ultimate-three-bureau-credit-report/

[StartingOver10]

Forgot all about that one Shane! Yes, MyFICO is easy to cancel, they won't hassle you at all