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.
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
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.