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Your Best Guess/suggestion For Pre Approval

shimp
Member

Your Best Guess/suggestion For Pre Approval

Hey All,

I just got married 20 months ago and my wife and I are wanting to move soon. My wife has had her house for 14 years now, mine went with the divorce 7 years ago.  We want to either build or buy in the $400-415K range.

 

Our credit profile:

 

I have a Mortgage Middle score of 725

Filed BK 7 discharged sept 2012 (divorce)

No Lates in the past 7 years

Child Support $927 per month done Feb 2020

Car Lease $315

Capital One Bank $4,473 / $7,000
Capital One Bank $123 / $14,000
Discover Financial $0 / $4,900
Capital One Bank 0$ / $13,300
Capital One Bank $0 / $500
Income $103K plus Bonus (Last Year W2 $119K, this year minimum $113K) Same career Field for 29 years
 
Wife:
Mortgage Middle Score 634
Brand new Student Loans of $21K (she is currently back to school)
All Payments Current past 18 months
The only Late payments in the past 24 months shown on her report is 3 mortgage payments paid late 2017
Syncb/amazon  $1,620 / $1,900
Jpmcb Card Services $2,000 / $2,300
Kohls Department Store $2981 / $3,000
Capital One Bank Usa Na $1980 / $2,000
Jpmcb Card Services $460 / $500
Syncb/banana Republic $3,929 / $4,700
Comenitybank/venus Credi $1,654 / $2,020
Comenity Bank/buckle $1,957 / $2,790
Von Maur $212 / $1,000
All Above paid ontime 
Wife Income: $75K+ Same career Field for 24 years
 
Current House (in her name only) Mortgage Balance $107K  Market Value $180K
20K in savings
67K in 401K
My question.. Can I get pre-approved alone if we consider $45-50K down using house sale equity?  Or do we need to work on her score to go together and get it done?
 
Any constructive criticism will be appreciated. 😊
Message 1 of 10
9 REPLIES 9
chiefone4u
Established Contributor

Re: Your Best Guess/suggestion For Pre Approval

I'm no expert on mortgages, rough guess on your own you will likely be able to qualify somewhere in the middle to upper $300k area (other factors may allow you significantly higher-- again I'm no expert).

Questions that might help others give you a more precise answer is what state do you live in (community property state)? Do you have any military affiliation?

If you're concerned about her credit score, with roughly $15k you could get her scores into upper 600's low 700's. As I'm sure you can tell, her utilization is killing her scores. AZEO method would give her score a big jump.
Goodwill Saturation Technique

Starting Score: EQ:608, EX:617, TU:625
Score 10/2018: EQ:669, EX:686, TU:668
Score 11/17/2018: EQ:682, EX:681, TU:683
Current Score 3/11/2020: EQ:695, EX:703, TU:720
12/24/2018 -- EQ Beacon 5.0: 678, EX Fico II: 690, TU Fico Classic 04: 716

Goal Score: 740+


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Message 2 of 10
AllZero
Mega Contributor

Re: Your Best Guess/suggestion For Pre Approval

Your score could be improved upon too. Capital One Bank $4,473 / $7,000 has high utilization 64%

 

Her scores can be improved. Question is, how much money do you want to use to pay down the debt?

 

Estimates for FICO 8 points. Mortgage scores EX2, TU4, EQ5 should react similar.

40-60 aggregate utilization 

(+-)20 individual utilization.

60-80 points

 

 Balance LimitUtilization
Amazon$1,620$1,90085%
Jpmcb$2,000$2,30087%
Kohls$2,981$3,00099%
C1$1,980$2,00099%
Jpmcb$460$50092%
BR$3,929$4,70084%
Venus$1,654$2,02082%
Buckle$1,957$2,79070%
Von Maur$212$1,00021%
Total$16,793$20,21083%
Message 3 of 10
shimp
Member

Re: Your Best Guess/suggestion For Pre Approval

Hello,

 

Thanks for your input.

 

We are in Nebraska, No Military

 

We could pay down some of the wife's CC debt pretty quickly, and I know that would help overall FICO scores, just was not sure how much it would help her Mortgage score? That's why I was wondering if I could go at it alone now to speed up the processes of getting approved.  If we need to build I would like to get it started sooner than later. Also, not paying down the CC debt leaves us to use some of our cash reserves for any emergency etc.

 

I would think most likely we could get approved for our $415K if we went in together even at this point, I was just hoping for better rates using my middle score.

Message 4 of 10
chiefone4u
Established Contributor

Re: Your Best Guess/suggestion For Pre Approval

Together your income should qualify for the loan you want.

I'm pretty sure you can get her mortgage score into the same rate tier you are currently in by bringing most her card's to a zero balance, and leaving the other under 8.9% utilization.

If you're going to apply alone you will probably want to wait until after you're no longer required to pay child support. The $900ish payment will definitely be questioned when the underwriter reviews your bank statements.

When you've decided its time for you to apply, I'd talk to your primary checking bank (see what they offer). Your chosen contractor will likely have suggestions for lenders that know how to close a construction loan.

For me, Ally bank had best rate and terms (didn't qualify for enough on my own for the house we purchased, and wife's credit wasn't high enough to add her).
US Bank offered terms close to what Ally offered and accepted my wife's score (we used US Bank for our loan).
Our credit union offered us a loan also, but we decided not to use them since we were told they wouldn't service the loan for the complete term (small credit union, 5 branches).

Best of luck.
Goodwill Saturation Technique

Starting Score: EQ:608, EX:617, TU:625
Score 10/2018: EQ:669, EX:686, TU:668
Score 11/17/2018: EQ:682, EX:681, TU:683
Current Score 3/11/2020: EQ:695, EX:703, TU:720
12/24/2018 -- EQ Beacon 5.0: 678, EX Fico II: 690, TU Fico Classic 04: 716

Goal Score: 740+


Take the myFICO Fitness Challenge

Discover IT $1000Cabelas Clasic $1000Coscto Anywhere Signature Visa -Citi- $7200ExxonMobil Smartcard -Citi- $2500Playstation Visa (Comenity) $1950QuickSilver One $2200Walmart $6000Wells Fargo Platinum Visa $3000

Member of the Synchrony Bank giveth then Taketh away April 2020 Club! $86,900 in available credit gone without warning.

Newest Account July 8, 2020 -- Last HP October 24, 2020 -- Gardening Goal:
August 2022 and reach 0/24
Message 5 of 10
VALoanMaster
Valued Contributor

Re: Your Best Guess/suggestion For Pre Approval


@shimp wrote:

Hey All,

I just got married 20 months ago and my wife and I are wanting to move soon. My wife has had her house for 14 years now, mine went with the divorce 7 years ago.  We want to either build or buy in the $400-415K range.

 

Our credit profile:

 

I have a Mortgage Middle score of 725

Filed BK 7 discharged sept 2012 (divorce)

No Lates in the past 7 years

Child Support $927 per month done Feb 2020

Car Lease $315

Capital One Bank $4,473 / $7,000
Capital One Bank $123 / $14,000
Discover Financial $0 / $4,900
Capital One Bank 0$ / $13,300
Capital One Bank $0 / $500
Income $103K plus Bonus (Last Year W2 $119K, this year minimum $113K) Same career Field for 29 years
 
Wife:
Mortgage Middle Score 634
Brand new Student Loans of $21K (she is currently back to school)
All Payments Current past 18 months
The only Late payments in the past 24 months shown on her report is 3 mortgage payments paid late 2017
Syncb/amazon  $1,620 / $1,900
Jpmcb Card Services $2,000 / $2,300
Kohls Department Store $2981 / $3,000
Capital One Bank Usa Na $1980 / $2,000
Jpmcb Card Services $460 / $500
Syncb/banana Republic $3,929 / $4,700
Comenitybank/venus Credi $1,654 / $2,020
Comenity Bank/buckle $1,957 / $2,790
Von Maur $212 / $1,000
All Above paid ontime 
Wife Income: $75K+ Same career Field for 24 years
 
Current House (in her name only) Mortgage Balance $107K  Market Value $180K
20K in savings
67K in 401K
My question.. Can I get pre-approved alone if we consider $45-50K down using house sale equity?  Or do we need to work on her score to go together and get it done?
 
Any constructive criticism will be appreciated. 😊

Hi Shimp,

Based on the info you provided & some "assumptions" on my part, you should be fine at $415,000 with 45K down on your own.

I guessed your cc payments would run $400 per month & taxes & insurance on the house would run $600 per month.

These figures combined with your car payment & child support put your debt to income ratio under 45%.

Does that make sense?

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 6 of 10
shimp
Member

Re: Your Best Guess/suggestion For Pre Approval

ValoanMaster.

Thanks for your input.  I was thinking I will pay down all CC (mine not wifes) to $0, but leave a small balance on one? It may take me a couple of months, but hoping the DTI gets better than you suggested and helps get me a better chance of securing by myself.  Then we will attack my wifes CC over time.

 

Message 7 of 10
CreditInspired
Super Contributor

Re: Your Best Guess/suggestion For Pre Approval

Just brainstorming here.
A question. Is it possible or would a lender accept, if OP wanted to pay the last 4 child support payments in a lump sum. That would give his DTI a humongous boost and he would no question be able to qualify on his own for the mortgage he wants.

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Message 8 of 10
VALoanMaster
Valued Contributor

Re: Your Best Guess/suggestion For Pre Approval


@shimp wrote:

ValoanMaster.

Thanks for your input.  I was thinking I will pay down all CC (mine not wifes) to $0, but leave a small balance on one? It may take me a couple of months, but hoping the DTI gets better than you suggested and helps get me a better chance of securing by myself.  Then we will attack my wifes CC over time.

 


As long as your DTI is under 45%, you'll be fine.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 9 of 10
VALoanMaster
Valued Contributor

Re: Your Best Guess/suggestion For Pre Approval


@CreditInspired wrote:
Just brainstorming here.
A question. Is it possible or would a lender accept, if OP wanted to pay the last 4 child support payments in a lump sum. That would give his DTI a humongous boost and he would no question be able to qualify on his own for the mortgage he wants.

@CreditInspired,

While that is certainly an option, it's not really necessary because the OP's DTI is under 45% with the child support included.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 10 of 10
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