Happy May! I'm reaching out for suggestions, tips, and education on how to improve my chances for a mortgage loan...or opinions on whether I should even try. I've been renting for 20 years (previously had a mortgage with ex-husband)...but paying rent at today's prices just doesn't make sense. Here are my details: * Current Middle Mortgage Score = 637 * Built and owned a house from 1995 - 2018. Divorced in 2011 but house was sold in 2018...Would I qualify as a first-time home-buyer? * Excellent personal rental history since 2004 (no missed/late payments) * 2023 Reported Gross Income = $105k *Employed with Current Employer = 23 years *Current Credit Card and Unsecured Loan Debt (no missed/late payments) = $135k (due to unhealthy "shop therapy" during COVID lockdown, COVID medical expenses, foolish MLM investments, paying off daughter's debts during COVID (due to job loss), daughter moving in with me due to COVID job loss. * Current Monthly Payments on Credit Cards and Loans (no missed/late payments in past 8 years) = $4,000 (interest rates are kicking my butt!) * Current Rent = $2,300 for 2-bedroom apartment (Texas) * No Reported Late Payments, Collections, nor Public Records * Over age 50 = Not sure if this even matters...but might. * Non-Military = Do not qualify for a VA loan. * Checking/Savings Accounts & Credit Cards = Navy Federal CU, PenFed CU, Baxter CU (adding this because i've seen others mention the best rates through these CUs) Should I even bother entertaining the thought of having a chance at qualifying for a mortgage? The $2,300 in rent that I am paying is more than what a few of my friend's mortgage payments. Any and all advise for increasing my chances of qualifying for a mortgage loan is greatly appreciated.
I think it's a pretty safe assumption that your credit card utilization is greatly suppressing your scores. This will also affect your DTI. You should be able to qualify for a mortgage. The issue is the lower scores are going to affect your rates. Bringing down your CC debt first will help you all the way around.
@JoeRockhead ...THANK YOU for replying. Yes indeed...my credit card debt is the biggest challenge for me with interest rates where they are. My CC UTI is at 93% so I will go the snowball route to tackle and reduce this. I'll give myself 10 - 12 months to lower/pay off my cc debt. Hopefully that will make a difference! Thanks again for sharing your knowledge with me.
