want to buy a house in the upcoming year.. advice please..

[jaytatis]

looking to buy a house sometime next year..

i havent looked at my mortgage score yet.

my fico8 is 814 at the moment.

my income this year will be 80k. next year ill be making 100k+.

my wife income is around 60k. her credit scores are in the mid 600's

i have about 31k so far in my retirement plan.

we will have around 25k cash for down payment/closing. looking to use half of retirement plan if needed.

we are looking at a house probably at 330,000 or less. 

now for debt. were looking to knock down much of what we have before that time comes.

wife has one card that has 3k on it.

i have a BOA with 12k. 0apr balance transfer

Discover with 5k 0apr balance transfer

other monthly debt..

car note $440.

car insurance $200.

gym membership $36.

student loan $90 have 2k left on it.

cellphone bill $130

is this possible?

[Anonymous]

Find a DTI calc on the internet. Plug in your monthly minimums. See if your ratios meet the thresholds for most lenders. With that much cc debt right now. I'd imagine you would have some difficulties. Knock that down rapidly. And you should be ok

[JVille]

First CreditKarma scores are worthless and generally offer a false sense of reality. Pull both your 3 Bureau FICO Mortgage (not FICO 8) scores on this site. These are actual scores your future lender will use. The lender will take the lowest middle score (your wife) of both borrowers.
You need to examine all 6 reports and go line by line and make sure nothing is lurking that will cause you grief. Better to deal with it now than panicking during the mortgage process.
You need to see what is holding your wife’s scores down, be super vigilant about no inquires, no new debt, no Over draft fees in your bank account.
You pulling your own scores won’t hurt anything. But every time a creditor does it you loose points.

Sitting down with a knowledgeable lender to review your situation and give advice for meeting your home purchasing goals is the only thing worth taking a Hard Pull in your credit. This is something you should do now so you can spend the next many months working on getting your scores up.

Generally no one will count your cell phone bill or gym membership. Good luck!

[Anonymous]

Also if you’re going FHA keep in mind they’ll generally attribute 1% of your total student loan balance as a payment even if you’re paying lower now. Mine are deferred and they’re attributing $2500 a month, which kills my DTI. Or at least makes it very tight. You didn’t list a student loan payment but unless you’re on a plan that fully amortizes by the end of the loan (so none of the income based), prepare for that 1%.

[AllZero]

Who will be applying, you or both?

[jaytatis]

thank you for the replies.

i am not on an income based plan for my student loans.

also i will get on here and get my Mortgage score thank you!

as for the credit card debt my monthly on the BOA is 132 its been fixed at that i guess cause its a balance transfer.

my card with 5000 is around 105 montly fixed again since its a balance transfer.

as far as whose applying its most likely going to be me since my wifes scores are alil shakey.

but by the time it comes around i will alreaady be making near both my wife and i income by August 2020. so 115+ hopefully that can get me somewhere close to a 300k mortgage 

[mrjerry]

...edited.