Hi everyone. I've been lurking these boards for a while now and I've appreciated all the advice I've gathered from your posts. I'm now seriously considering entering the buying market myself and would greatly appreciate your insights for my own financial situation.
My concerns: High CC utilization (total CC debt/limits is about 75%) but my DTI is quite low (18%) Given my low cash reserves, I'm seriously considering NFCU's 100% financing program. I called yesterday for a pre-qualification and they came back with a $371k figure, but of course I know this doesn't take into account credit score. Ideally, I would like to purchase a home this spring 2017 but I'm not sure how feasible that is. If it's definitely possible, when do you think I should bite the bullet and start applying? Any advice to help improve my odds would be greatly appreciated. Thanks so much!
1. Mortgage Credit Scores:
Applying solo... Experian: 679, TransUnion; 688, Equifax: 690 (Fico8s are in low 700s)
2. Credit Negatives: None
Oldest credit account is 8 years, newest is 11 months
Have several accounts (5 credit cards, student loans, 1 car loan, 1 non-homeowner occupied mortgage for a home I purchased for my parents last year. I do not make the payments)
Authorized user accounts: My mom is one of my AUs and I am an AU on significant other's card
3. Gross Income: $82, 391
4. Source of income. I'm a full-time federal employee. I have been in this position for 4 years. While I technically have an investment home (mentioned above), I do not earn any rental income on it. My parents are living in this home and pay the mortgage payment in full since April 2015.
5. Monthly debt payments.
Total CC minimums = $568
Car loan = $618
Total monthly debts = $1186
I do not have my own rent/mortgage payments right now... I'm 26 years old and have relocated from DC to Houston and am currently living with my parents for a short while (I hope)
While I have student loans, my employer has been paying them for 4 years.
Question - Would the mortgage on the investment home that my parents live in count towards this? Again, they have been "renting" it from me since April 2015.
6. Employment (for those who are employed).
Type of employment: W2'd federal employee (full time)
How long have you been on the job - 4 years
How long have you been in the industry/career field. - 4 years
7. Assets/Reserves. Not much in checkings or savings at the moment since I have been trying to pay down my CC debts, but I have about $17k in my retirement account that I am able to withdraw myself
8. Location: North Houston (particularly the Spring or The Woodlands areas... most likely Montgomery County)
9. Property Description: I'm interested in a single family home or townhome, in the $250-325k range.