Trying to get a headstart.. Any Help Appretiated *

[Fico82]

Hello Fico Fam. ,

So it has been a long journey on trying to clean up mine and my wifes credit and now the pressure is on in trying to get a mortgage loan late this year. I have read alot of threads and done alot of youtubing on mortgage loans etc but still feel a little lost so first off...

1. Mortgage Credit Scores: My middle score is 692 and the wifes is 801 pulled by fico website. 

2. Credit Negatives: I have 4 red marks and the wife has all green all good from what i can see

• Type: charge-offs 
• Status: 3 have 0 balance that i had to pay when i got sued from PRA and 1 has 111% utiliazation. these 4 accounts are credit cards.
  
• DOFD: This info i could not find .
• Miscellaneous: Me and the wife are on eachother credit cards as authorized users and we both are a authorize user on my dads cap one card. 

3. Gross Income : Combined income is not much. 2017 year we hit 55-60k. 2018 not sure until w2s arrive but was little slower for me.

4. Source of income.  Both Full Time

5. Monthly debt payments. Currently pay on 2 credit cards . 1 bestbuy not sure on minimum but i pay bigger payments and should be paid off next 3 months or so only $300 owed to that. 2. is discover that we put our normal monthly light gas food etc and i pif 1 day before statement cut. One time i tried to calculate dti not sure if i did it right but we fall in the 1-3% range. in the past 2-3 years we have paid off all credit cards , student loans , auto loans , personal loans , about 99% is paid off except that one negative i have sitting at 111% util.  

6. Employment  we are both w2 , i have 7 years she has 5 years with same company.

7. Assets/Reserves.

• Savings is 18k and growing till 4th quater of this year . This will be used for down payment etc . My calculations figure we might hit 25-30k by 4th quater
• Checking is 3-5k
• 401k is 20k combined

8. Location:  This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items.

• Texas
• Cameron

9. Property Description: 

• single family house 
• Wife would like new but i think we will have to settle for used older home due to income.

10. Property Value. This is where i get confused or stuck. I dont know how to calculate how much house we can afford using a monthly payment etc.  Right now we pay $600 rent on 1 bed apt. Many people tell me ... that a house payment etc so ... i would like to be somewhere in that ball park but i do know that there is extra money involved because of insurance and taxes and thats where i get thrown off. How much house is a 5-700 dollar monthly payment including ins+tax ?

11. Occupancy. It will be only me and the wife. 2-3 bedroom is fine.

12. Transaction Type.  it a purchase

What do you guys think ? any help is appretiated . Best buy is my last cc that i will be paying off next 3 months or so . The fico simulator says that when boa gets paid or drops off my report im looking at a 80-180 point increase ? The 4 baddies im not sure when they be falling off the report doesnt say when. Anything else you guys recommend that we can do to increase fico and our chances? Thank you all , im new to forum i only read but this my 2nd post so if anything wrong let me know i will correct.

[Fico82]

1. Mortgage Credit Scores: My middle score is 692 and the wifes is 801 pulled by fico website. 

[Fico82]

2. Credit Negatives: I have 4 red marks and the wife has all green all good from what i can see

• Type: charge-offs 
• Status: 3 have 0 balance that i had to pay when i got sued from PRA and 1 has 111% utiliazation. these 4 accounts are credit cards.
  
• DOFD: This info i could not find .
• Miscellaneous: Me and the wife are on eachother credit cards as authorized users and we both are a authorize user on my dads cap one card. 

3. Gross Income : Combined income is not much. 2017 year we hit 55-60k. 2018 not sure until w2s arrive but was little slower for me.

[Fico82]

4. Source of income.  Both Full Time

[Fico82]

5. Monthly debt payments. Currently pay on 2 credit cards . 1 bestbuy not sure on minimum but i pay bigger payments and should be paid off next 3 months or so only $300 owed to that. 2. is discover that we put our normal monthly light gas food etc and i pif 1 day before statement cut. One time i tried to calculate dti not sure if i did it right but we fall in the 1-3% range. in the past 2-3 years we have paid off all credit cards , student loans , auto loans , personal loans , about 99% is paid off except that one negative i have sitting at 111% util.  

[Fico82]

6. Employment  we are both w2 , i have 7 years she has 5 years with same company.

[Fico82]

7. Assets/Reserves.

• Savings is 18k and growing till 4th quater of this year . This will be used for down payment etc . My calculations figure we might hit 25-30k by 4th quater
• Checking is 3-5k
• 401k is 20k combined

8. Location:  This is to determine govt guaranteed loan limits, what special programs might be available for you, how much property taxes & homeowners insurance will likely be, amongst other items.

• Texas
• Cameron

9. Property Description: 

• single family house 
• Wife would like new but i think we will have to settle for used older home due to income.

10. Property Value. This is where i get confused or stuck. I dont know how to calculate how much house we can afford using a monthly payment etc.  Right now we pay $600 rent on 1 bed apt. Many people tell me ... that a house payment etc so ... i would like to be somewhere in that ball park but i do know that there is extra money involved because of insurance and taxes and thats where i get thrown off. How much house is a 5-700 dollar monthly payment including ins+tax ?

[Fico82]

11. Occupancy. It will be only me and the wife. 2-3 bedroom is fine.

[Fico82]

12. Transaction Type.  it a purchase

[Fico82]

What do you guys think ? any help is appretiated . Best buy is my last cc that i will be paying off next 3 months or so . The fico simulator says that when boa gets paid or drops off my report im looking at a 80-180 point increase ? The 4 baddies im not sure when they be falling off the report doesnt say when. Anything else you guys recommend that we can do to increase fico and our chances? Thank you all , im new to forum i only read but this my 2nd post so if anything wrong let me know i will correct.

[chiefone4u]

Every bank and every loan program is different. Most banks won't offer a mortgage with that card reporting 111%.

We were told by numerous banks that USDA, fha and conventional loans required all collections accounts and charge offs to report a $0 balance to get funded.

If its currently reporting monthly its holding your scores down on two fronts: utilization of credit line and recent negative (late payment/ charge off /collection).

If it will age off before you plan on buying I would wait to pay it until after it ages off (still get settlement in writing before paying, I've dealt with a few creditors who came after me again for the same debt a few years later -- without the letter I wouldn't have been able to prove my case).

I'm sure someone else will chime in shortly and provide you with a more complete answer.

Best of luck with your house shopping!

[VALoanMaster]

Hi Fico82,

The good news is Cameron, TX is an area that is eligible for the USDA program.

To keep your payment under $700 per month, you're looking at a purchase price of $90,000 with $15,000 down.

That will give you a total estimated monthly payment of $657.28 on a conventional loan.

[Fico82]

Thanks for the response chiefone4u , im thinking it should age off sometime this year.. i found out the last payment i made was around aug/sept of 2012.

[Fico82]

Thanks for the response valoanmaster ,  thats good info to know i will be looking it up on that website to see what areas usda will fall into. Thanks again for the advice.