Will we qualify for a mortgage? Decent rates?

[Anonymous]

1. Mortgage Credit Scores:  

• Mine: Equifax: 713, Transunion: 729, Experian: 739
• Wifes: Equifax: 768, Transunion: 747, Experian: 797

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

• Mine: 90/120 day late payments on a Citi credit card and Amazon store card, both PIF, DOFD 11/2012, have had no other dilinquencies or negatives on my CR.
• Wifes: No negatives, she's squeaky clean.  

3. Gross Income.  

• Mine: $42, 000
• Wifes: $47,800

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

• Mine: I'm a nanny, paid hourly, W-2 employee. About $5000 of my income is from Overtime pay. 2017 I made 42k but in 2016 I only made 32K
• Wife: She's a nurse, paid hourly, W-2 employee. No overtime. But her income from last year is from 2 different employers since she got a new job May 2017 but same industry. 

5. Monthly debt payments. 

• Student Loans: $327 per month. about 15K between the two of us. 
• Joint Car loan: $248.50 per month. about 10k left on the loan.
• Credit Cards: $0, we don't carry balances and always let our statements cut with about 1% usage on them. 

6. Employment (for those who are employed). 

• Type of employment: Both of us are W-2 employees. I made 5K in overtime pay this last year. 
• How long: I will have been in my current job (at the time of applying for a mortgage, April 2018) 3 months shy of 2 years. Wife will have been in her current job almost exactly 1 year. 
• How long in the industry/career field?: I have been a nanny for 2 years. She has been a nurse almost 5 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).

• Savings: We have saved 25K. Our plan is to put 18K down, have about 2-3K for closing costs, and 4-5K for reserve. 
• We have retirement accounts but we woudn't consider using any of that money at all for a downpayment or reserve. 

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.

• Minnesota, Ramsey County, St. Paul (not looking in any suburbs, only within St. Paul)

9. Property Description: 

• We are 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 170K-200K

11. Occupancy. 

• Primary residence: Just my wife and I.

12. Transaction Type.  Purchase transaction. First time homebuyers.

[Anonymous]

1. Mortgage Credit Scores:  

• Mine: Equifax: 713, Transunion: 729, Experian: 739
• Wifes: Equifax: 768, Transunion: 747, Experian: 797

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

• Mine: 90/120 day late payments on a Citi credit card and Amazon store card, both PIF, DOFD 11/2012, have had no other dilinquencies or negatives on my CR.
• Wifes: No negatives, she's squeaky clean.  

3. Gross Income.  

• Mine: $42, 000
• Wifes: $47,800

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

• Mine: I'm a nanny, paid hourly, W-2 employee. About $5000 of my income is from Overtime pay. 2017 I made 42k but in 2016 I only made 32K
• Wife: She's a nurse, paid hourly, W-2 employee. No overtime. But her income from last year is from 2 different employers since she got a new job May 2017 but same industry. 

5. Monthly debt payments. 

• Student Loans: $327 per month. about 15K between the two of us. 
• Joint Car loan: $248.50 per month. about 10k left on the loan.
• Credit Cards: $0, we don't carry balances and always let our statements cut with about 1% usage on them. 

6. Employment (for those who are employed). 

• Type of employment: Both of us are W-2 employees. I made 5K in overtime pay this last year. 
• How long: I will have been in my current job (at the time of applying for a mortgage, April 2018) 3 months shy of 2 years. Wife will have been in her current job almost exactly 1 year. 
• How long in the industry/career field?: I have been a nanny for 2 years. She has been a nurse almost 5 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).

• Savings: We have saved 25K. Our plan is to put 18K down, have about 2-3K for closing costs, and 4-5K for reserve. 
• We have retirement accounts but we woudn't consider using any of that money at all for a downpayment or reserve. 

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.

• Minnesota, Ramsey County, St. Paul (not looking in any suburbs, only within St. Paul)

9. Property Description: 

• We are 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 170K-200K

11. Occupancy. 

[Anonymous]

• Primary residence: Just my wife and I.

[Anonymous]

12. Transaction Type.  Purchase transaction. First time homebuyers.

[CreditInspired]

I don't think you would have any problem qualifying for a decent rate if those are your mortgage scores.

Also, I do think your closing cost will be more than $2-3K, which consists of escrow for real estate taxes and home owner's insurance, and possible flood insurance if home is in a flood zone. Then there's lender title, owner's title (optional), recordation fees, city taxes, county taxes, mortgage interest (amt depends on day of month you close), loan origination fee and possible points, settlement atty fees.This could easily be $6-9K. Then, of course, if it's not a seller's market in your area, you could always ask seller for closing cost assistance.

GL2U. 

[Anonymous]

Those are our mortgage scores (as of this past Friday)!

Minnesota has some of the lowest closing costs in the country. We'll be talking to our credit Union in a few months to ask about the process and will get a better idea what closing costs will look like. We are hoping we'll actually have closer to 27k when we apply for a mortgage, but are being conservative.

Thank you for your opinions and help!

[CreditInspired]

OMG I need to move to MN!!!!!

I live in Northern VA and closing costs are outrageous! And on that top of that we're in a seller's market -- competitive bidding -- so no closing cost assistance for me.

Are you with NFCU? That's who I'll be using to get my my mortgage and they have this wonderful 0% down and no PMI; plus if you use a realtor they recommend through Realty Plus, they will refund money to you after closing.

Again GL2U

[Anonymous]

Wow! I've seen people paying crazy amounts for closing costs! We've decided to up ours to 5k in our budget, just in case, after talking to some friends who recently bought in our area. They paid about 2-2.5% of the price of the house, but both couples we talked to got the sellers to cover most all of that! So I'm hopeful we'll just be able to put ours towards the down payment if we find sellers who are willing to pay all or a portion of them!!

We will be going through a local credit union, not NFCU! Our credit union also has a program like that though! We'll be using one of their realtors and getting about 900 back at closing!

Good luck to you too!