Will we qualify for a mortgage? Decent rates?

[Anonymous]

1. Mortgage Credit Scores:  

• Mine: Equifax: 700, Transunion: 658, Experian: 673

2. Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide:

• Equifax- Two US Dep educations in collections 0 ballance paid in full
• Transunion-  Two US Dep educations in collections 0 ballance paid in full and 1 Phone bill in collections 0 ballance paid in full
• Experian - Two US Dep educations in collections 0 ballance paid in full and 1 Phone bill in collections 0 ballance paid in fullWorking on getting all these removed

3. Gross Income.  

• $93,000

4. Source of income.  Where is the income coming from? List each source.

• Computer engineer , W-2 employee, Salary

5. Monthly debt payments. 

• Car loan:  $640 a month, about $20,000 left 
• Credit Cards: 1 credit card using about $600 on a $3800 limit. I keep this under 31% utilization

6. Employment (for those who are employed). 

• Type of employment: Both of us are W-2 employees. 
• How long: I will have been in my current job 3 Years 
• How long in the industry/career field?: 20 years

7. 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).

• I have retirement account with roughly 60k

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, Bexar county 

9. Property Description: 

• I am looking at single family homes only. 2-4 bedrooms and 1+ bathrooms. 1200 sqft or more. lot sizes seem to be about 5-7K sqft. 

10. Property Value. 

• Purchase transaction: Price range 190K-250K

11. Occupancy. 

• Primary residence: 

12. Transaction Type.  Purchase transaction. First time homebuyer

[Anonymous]

1. Mortgage Credit Scores:  

• Mine: Equifax: 700, Transunion: 658, Experian: 673

2. Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide:

• Equifax- Two US Dep educations in collections 0 ballance paid in full
• Transunion-  Two US Dep educations in collections 0 ballance paid in full and 1 Phone bill in collections 0 ballance paid in full
• Experian - Two US Dep educations in collections 0 ballance paid in full and 1 Phone bill in collections 0 ballance paid in fullWorking on getting all these removed

3. Gross Income.  

• $93,000

4. Source of income.  Where is the income coming from? List each source.

• Computer engineer , W-2 employee, Salary

5. Monthly debt payments. 

• Car loan:  $640 a month, about $20,000 left 
• Credit Cards: 1 credit card using about $600 on a $3800 limit. I keep this under 31% utilization

6. Employment (for those who are employed). 

• Type of employment: Both of us are W-2 employees. 
• How long: I will have been in my current job 3 Years 
• How long in the industry/career field?: 20 years

7. 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).

• I have retirement account with roughly 60k

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, Bexar county 

9. Property Description: 

• I am looking at single family homes only. 2-4 bedrooms and 1+ bathrooms. 1200 sqft or more. lot sizes seem to be about 5-7K sqft. 

10. Property Value. 

• Purchase transaction: Price range 190K-250K

11. Occupancy. 

• Primary residence: 

12. Transaction Type.  Purchase transaction. First time homebuyer

[Anonymous]

1. Mortgage Credit Scores:  

• Mine: Equifax: 700, Transunion: 658, Experian: 673

2. Credit Negatives: If you have any, what negatives are on your credit reports. For each negative, please provide:

• Equifax- Two US Dep educations in collections 0 ballance paid in full
• Transunion-  Two US Dep educations in collections 0 ballance paid in full and 1 Phone bill in collections 0 ballance paid in full
• Experian - Two US Dep educations in collections 0 ballance paid in full and 1 Phone bill in collections 0 ballance paid in fullWorking on getting all these removed

3. Gross Income.  

• $93,000

4. Source of income.  Where is the income coming from? List each source.

• Computer engineer , W-2 employee, Salary

5. Monthly debt payments. 

• Car loan:  $640 a month, about $20,000 left 
• Credit Cards: 1 credit card using about $600 on a $3800 limit. I keep this under 31% utilization

6. Employment (for those who are employed). 

• Type of employment: Both of us are W-2 employees. 
• How long: I will have been in my current job 3 Years 
• How long in the industry/career field?: 20 years

7. 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).

• I have retirement account with roughly 60k

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, Bexar county 

9. Property Description: 

• I am looking at single family homes only. 2-4 bedrooms and 1+ bathrooms. 1200 sqft or more. lot sizes seem to be about 5-7K sqft. 

10. Property Value. 

• Purchase transaction: Price range 190K-250K

11. Occupancy. 

[Anonymous]

• Primary residence: 

[Anonymous]

12. Transaction Type.  Purchase transaction. First time homebuyer

[NC_Mtg_Loaner]

You shouldn't have any issues.

Rates, although they are nearing 4 year highs--are still at record lows and you should be fine getting approved for something in your comfort range that you're listing.

I say just go for it and contact a lender to get pre-approved.  PM me if you want further assistance.  

[Anonymous]

I was just thinking about getting my middle mortage score a little higher than 658. Thoughts? The reason for this is I don't want them to pull my credit now get a hard hit on it and then not like the rates I am given and have to wait for my score to go back up cause of the hard hit when I try and get pre-approved again.

[Kree]

---

wrote:

I was just thinking about getting my middle mortage score a little higher than 658. Thoughts? The reason for this is I don't want them to pull my credit now get a hard hit on it and then not like the rates I am given and have to wait for my score to go back up cause of the hard hit when I try and get pre-approved again.

---

You mention having 1 auto loan, and 1 credit card with balance.  Do you have additional cards without balance? And any closed cards or loans? please list open dates.

Also please give a time frame or when you would like to purchase the house. Depending on your trade lines you could boost your score by opening additional accounts, but there would be an immediate drop in score, with a raise over 3, or 6, or 12 months.  How many accounts you have, and how old they are will effect how much of a boost and how quickly you will see it.

[NC_Mtg_Loaner]

Kree brings up a good point that I don't think i noticed--having one more credit card may optimize your scores.

If you are utilizing credit in a responsible manner a hard credit inquiry or two (heck, maybe even 3--especially if they are for mortgage loans) aren't going to adversely impact your credit score in the fashion you are fearing.  

[Anonymous]

I have no other credit cards on my account closed or open. I didn't beleieve in them for a long time (as I didn't trust myself early on).  Yes, I have 1 home loan closed paid in full, ( Got divorced and sold the house) opened in 2016.  2 other vehical  loans paid in full.

1.) vehical loan open date sep 2005

2.) vehical loan open date Jul, 2011 

3.) Home loand open date Jul, 2006

[Anonymous]

Looking to buy in Summer of 2018

[Kree]

So, that 2005 car loan could be a problem if it was a 36 month term.   After being closed 10 years it can fall off of your record lowering both your average age of accounts, and age of oldest account. If its longer then 36 don't worry about it.

With this time frame I can't think of a quaranteed way of raising your score, but opening 2 more cards might do so by summer.  The concern is 2 more young accounts might be a no-no for a mortgage even with higher scores.

That being said, you've got a strong profile, and should have no problem being given a mortgage, if you apply after you pay down your CC to under 8.9% (not zero, you do not want zero) and it has reported, a loan officer can let you know what they are looking for to give you better percentages, you will have several months to increase your scores. (or wait until you've removed as many negatives as possible)

Worst case, you take a higher interest now, and in 2-3 years you refinance with your 750+ scores. (if you build up your credit)

[Anonymous]

Why pay down to 8.9% I thought I was good to keep it under 31%

[Kree]

There are 3 know point thresholds <10%  <30% and <60%   But with rounding at things people say 8.9% 28.9% and <58.9% just to be sure.   Also >80% counts as 100% for point loss I think.

So while under 30% is good,  under 8.9% is better. Or best, I guess as you can't get better than <8.9%   Also make sure its greater than 5 dollars, so they don't give you a credit to save on paperwork and report at 0.