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Starting to prep for 1st home advice please

Regular Contributor

Starting to prep for 1st home advice please

Ok. So we started my rebuild last year and hope to start my home buying process next year. Just looking for preliminary advise as to what I can do. Here’s a brief overview to my stats.

Mortgage scores
Equifax: 677 1 paid baddie of $550 to fall off July 2019. Also 3 late auto payments from 4 yrs ago

Transunion: 691 no baddies 3 late auto payments 4 yrs ago

Experian: 686 1 paid baddie of $550 to fall off july and same 3 late auto from 4 yrs ago.

Wife’s scores not sure of specifics but most likely same auto lates since we both signed for car.
Equifax 706
Transunion 704
Experian 691

Car loan 1 $700 month 4 yrs left
Car loan 2 $500 month 4 yrs left
Student loan 1 $650 month 2.5 yrs left
Student loan 2 $400 month 3 years left
Credit card utilization 3% out of $100K available but we pay in full before due date.
Rent $2600 currently does this count towards DTI

We each have about 10 new credit cards opened in the last 15 months. Got a little carried away since our credit was never good enough to get any before.

My salary $220k year for last 2 years and moving forward.

Wife just started working and she is making $50K a year.

We used most of our income to pay off debts and repair credit. So we still need our 3.5% for deposit. Unfortunately we live in the Bay Area in CA and are looking at having to spend around $550-$650k to buy a house, and that’s with commuting to a more affordable area.

I think our debt to income ratio is ok but kicking myself on the $700 month car loan right now. Should have gotten something else. If I sell it and drive a beater will it matter for our ratio or is it acceptable with it.

Also according to myFICO simulator and experian simulator my Equifax Fico 8 should go up 30 points in 5 months and an additional 20 points 2 months after. Experian will go up 35 points in 8 months and Transunion will go up 15 points in 5 months. Not sure what that would do to my mortgage scores. Anyone know how the mortgage scores are related to Fico 8? I plan to maybe start home shopping after the supposed experian score increase in 8 months. We hope to have at least the seed money for a deposit.

Is FHA or conventional loan easier/better. Any pros and cons for them?

If you made it to the end of this long read.... Thank you for your time and Any info or advise would be appreciated.
Message 1 of 2
Valued Contributor

Re: Starting to prep for 1st home advice please

You should be fine as long as you keep paying all your bills on time and can begin /continue saving for both retirement and down payment.


Retirement is often overlooked in lieu of saving to buy a house, but with your income level you can't afford not to save for retirement (which can be a great source for a down payment if necessary) as the tax savings should make the retirement savings worthwhile.




Licensed NC Mortgage Loan Originator
Message 2 of 2
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