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Will I Qualify


Will I Qualify


Would love to apply for a mortgage after the new year.    When I joined MyFico in June 2016 my scores were: FICO EQ:673/TU:675/EXP:674 with corresponding mortgage scores of 631/670/633.  In September the scores were: FICO EQ:687/TU:674/EXP:679 with corresponding mortgage scores of 657/691/656.  Current FICO 8 scores from the Dashboard area on MyFICO 715/716/681.  I will pull another free report in December to see where I am with the mortgage scores - hopefully will see a bump as I have recently paid down my credit card debt and believe I am under 30% now with that.  My concern is the late payments that I had on my previous mortgage.  I sold the house in July and have not had a rental payment since then which has allowed me to pay off a significant portion of debt.  I am wondering if I would even qualify for a mortgage.




Do I qualify for a mortgage? Info that is needed.

 [ Edited ]


‎11-15-2008 02:18 PM - last edited on ‎06-22-2015 11:15 PM by  Kenny

Even though we normally can answer your questions with the information that most people include in the original post, I just wanted to provide a list of information that the people who answer questions normally will need to give you complete, accurate advice on your chances of being able to qualify for a mortgage.  Remember, the more information that you share, the more information that can be shared back with you.


  1. Mortgage Credit Scores:

  1. Credit Negatives:If you have any, what negatives are onyour credit reports. For each negative, please provide:
  • Type: (collections, charge-offs, late payments[housing/installment/revolving],short sales, deed in lieu, BK's[7/13], judgments, tax liens, back owed child support, student loan, other.)
      • Bankruptcy 2008, discharged 2009
      • Late payment – unfortunately on mortgage May 2014, November/December 2015; no other lates in file
  • Status: Paid/Unpaid orCurrent/Delinquent on payment plan.
  • DOFD: Date of first delinquency as listed on your CR if known. Please use month/year format as in: 10/15
      • May 2014
  • Most Recent: if applicable, Date and tradeline type [housing/revolving/installment] of most recent delinquency as listed on your CR. Please use month/year format as in: 10/15 Mortgage 12/15
  • Miscellaneous
    • Less than 24 months ofestablished credit
    • Thin credit filegenerally defined as less than three currently reporting credit tradelines
    • Authorized user accounts(which aren't considered by underwriting) None
    • Accounts from yournamesake with the same exact name because you are a Jr., etc. 
  1. Gross IncomeGrossincome (before witholdings, medical/dental, 401k contributions), per your IRS tax returns, is what is important when qualifying, not net income.  112,000 – W-2 income
  • For self-employed/1099'd people it's your gross income minus expenses/write-offs, adding back in depreciation/depletion. 
  • Income is essential to DTIR (Debt-To-Income-Ratio) calculations as well as other qualifying criteria, both minimum and maximum.
  • If you don't want to list your income, and just want to receive advice without addressing that part of qualifying (which is very major), just say you have enough income, no one will pass judgment, but realize the advice given may be limited in many ways.
  1. Source of income.  Where is the income coming from? List each source. W-2
  • Employment, Full-time
  • salary, hourly, overtime, bonus, commission, etc. (list each separately) 112,000 annually
  • If you have OT/bonus/commission income, state the history and consistency in which it is received.
  • Pension,
  • Social security,
  • Disability,
  • Foster care,
  • VA benefits,
  • Rental income,
  • Lottery income,
  • investments
  1. Monthly debt paymentsCar-425 Personal Loan-395 Student Loan-100 Credit Card-225;     Total Amount of Revolving Credit: $36,980  Credit in use: $9625
  • This goes hand in hand with income and the new mortgage payment to determine yourdebt to income (DTI) ratio
  • Onlyitems on the credit report is the general rule, but also items such as student loans, alimony, child support, union dues and some other work related expenses are included too. 
  • Only theminimum required payment amount is what underwriters are concerned with. 
  • HOA/Condo fees:both current and new. These do make a difference in DTIR and in "payment shock" considerations. $83/month
  • Student loans: If you are on a payment plan and making payments, list the payment AND the total debt. If not making payments list the total debt. If currently deferred, list the remaining months in deferment. This area is frequently changing and varies significantly by lender, HUD, and the FMs.
  • Items such as utilities, cell phone, insurance, etc.are not included in the DTI. 
  • If you have a question if something is included just ask.
  1. Employment(for those who are employed). 
  • Type of employment: self-employed, S-corp, W-2'd (salaried? Commission? Base + commission? 25% ownership), 1099'd, part-time, full time, 2nd job, etc. W-2
  • How longhave you been on the job 22 years
  • How longhave you been in the industry/career field.  22 years
  • A 2 year employment history is what most loan programs require. 
  • For those who have been self-employed less than 2 years, what did you do before your venture? 
  • For those of you who have less than 2 years employment history, did you graduate from a higher education school before you started working? If so, is your current line of work similar to what you studied?
  1. Assets/Reserves. This is to determine how much you could potentially have as a down payment and also as reserves to help qualify (for example if your debt to income ratio is high this could help qualify you anyway).
  • Savings, $81,000
  • Checking $2000
  • 401k $29000
  • IRA
  • Stocks
  • Bonds
  • CD's
  • Mutual funds
  • Money market accounts
  • Any other investment/retirement accounts
  • Gift  
  • Note: If it is a pension or retirement account that does not permit you to withdraw or take a loan against (other than for hardship), and is only able to be used after you quit or retire, then it cannot be used as reserves.
  1. 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.
  • State Maine – currently live in MA looking to buy in Maine
  • County(s) Cumberland
  • City or zip(s)
  1. Property Description:Single Family; sale price $275,000, down-payment of $80,000
  • Is it a single family house, condo, townhome, attached/detached,2-4 units, 5+ units, manufactured home, a co-op, condotel, the penthouse of a 45 story apartment building, suburban, rural, a lot of acres, a working farm, a gas station, etc. 
  • The condition of the property is helpful, as lenders have certain minimum requirements properties must meet (working utilities, etc.).
  • Occupied or vacant ... and for how long?
  1. Property Value$275,000
  • Purchase transaction:what is the home price range you are looking in, narrowed it down to, or are under contract for
  • Refinance transaction:
    • what is the appraised value of the home $275,000
    • when did you purchase your home
    • what is the current outstanding principal balance
    • what is the initial/current interest rate.
  1. Occupancy
  • Primary residence Eventually primary residence/sold previous residence in July so have no current mortgage
    • How many people living there, incomes even if not applicant, elderly, disabled. (Needed to determine eligibility for some programs)
    • Are all mortgage applicants going to be living in the house?
  • Vacation/2nd home
  • Non-owner/rental property
  1. Transaction Type.  Is it a purchase, refinance just for better terms, refinance to take cash out, looking for a 2nd mortgage, a reverse mortgage, etc. Purchase


Of course not all of that covers every person's situation, so feel free to elaborate on your own if you think there are important details that should be known, such as buying your new primary residence in another state, having a co-signer, buying a home from someone you are related to, the home you are buying is on an Indian reservation, you are employed by family, you aren't a US Citizen, your employment will start after you are buying, your down payment is coming from your current home when it sells, the seller is crediting you $5k towards your closing costs... just to name a couple.  Even if you think something is not important, don't leave it out, as it might have a bigger impact than you think.


-Original post by: ShaneTheMortgageMan

-Updated for accuracy by: Lemmus, StartingOver10, Revelate | 6-19-2015


Message 1 of 2
Moderator Emerita

Re: Will I Qualify

One of the things I noticed is that you owe just under $10k in cc debt.  Why don't you pay that down to less than 5% of your open credit card limits (IIRC your open cc limits are $36k).  This should bump your score considerably so you get a good benefit of going conventional.  Just thinking this will bring your mortgage scores up to 700+.  You won't have to worry about PMI if you put down 20% on your planned purchase of $275k.  


EDIT:  My thinking is that if you paid down your balances now, the new scores would reflect by Jan 2017 which is when it counts - on application.


5% of $36k is $1800.  Make sure all the cc are zero except one.  There are benefits to optimizing your mortgage score before application. 

Message 2 of 2
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