what do you all think..

[colinb913]

Fiance and I are going to apply for mortgages.. Here's the stats.

Scores: Me:610 Her:685

Income: Combined about 3200/month

Debt: $300 car payment, no outstanding credit card balances.

22k saved for down payment. However I also have around 5k in bonds that I need to redeem, but I will do that closer to the buy time.

We both work at banks, and have been for about six months. Before that, we both were at our previous jobs for over one year. We are both 20, and are looking in the 110-160k price range.

We would like a conventional 20% down 30 year mortgage. No interest in paying PMI at all.

Newburgh Indiana, suburb of Evansville, and it will just be a single family house.

Getting one late payment wiped off my score from Capital One that was false, so I assume my score will rise when that happens. That's the only baddie that either one of us have..

Going to apply in about 90 days, once I feel that baddie has been taken care of. Until then, just doing alot of research, and alot of question asking.

Feel free to ask more questions, I have no problems answering, I hope I provided enough to get a rough estimate of our chances. We will be applying at the bank I work at first.

[edcampbell613]

Need to work on that 610 score and get it up to 620 min for FNME/FDMC (conventional)

the higher the better.

looks cookie cutter other than that

[Everything-A-Fight]

Our example in PA.  

Twenty-six months ago we started to fix my fiancees credit by contacting all creditors and paying all debts in full. No settlements. None would agree to report paid in full in exchange for a settlement amount.  Her score was 592. She had no loans at that time just bad debt including student loans.

Got a high interest car loan for several months and the refinanced it then 3 months later she sold it to me so now there's no auto loan on report and the only debt she has $4500. Personal loan from her credit union always paid as agreed.

She also has had activity below 70% on JCP card, and 100% on HHGREEGG and Home depot for a while. We became fortunate and were able to pay all off. She keeps them open though. Don't close a credit card.

Her score is stuck at 694 as the middle score and that's experian. She just applied for a mortgage, but it would have been nice to reach 700 but we cant seem to do it. Her score has gone down a couple times too since the beginning because some paid creditors re reported their status. Everytime it was the same status meaning but just the update caused changes. Its Bern frustrating.

I think you should wait for 640 minimum to apply. It could be right around the corner. Use the monitoring option with FICO, its the single best $15 you could buy every month.

Equifax has one too that you could get down to half after a few months if you call to cancel.

Good luck. 

[LieslMet]

Your income is WAY too low to be thnking about $110K-$160K. You're lookng at around $75K. This is assuming $15K down, taxes of $2000 and insurance of $600/year, I'd say around $4-5K will be taken up by closing costs. 

Are you sure it's not a typo that you make only $2300/month, combined? Even if you each only made minimum wage, you'd have a combined income of $2513/month. And that car payment is killing you... you'd be closer to $135K if you didn't have it. What about paying off the car and gong FHA, then paying it down aggressively? Or just wait untl the car is paid off, paying that down quickly.

http://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx

[ShanetheMortgageMan]

Is the $2,300/mo you listed your gross income or net income?  Lenders qualify using your gross income.  If your gross income is $2,300/mo then $160k with 20% down would be too high of a sales price for you to qualify for - your total debt ratio would be around 53% (conventional usually caps out at 45%).  $110k with 20% down would be much more realistic.

Like LieslMet brought up though, are both you and your fiance working full time?  Because if so, then your total gross income should be more than $2,300/mo even at minimum wage ($7.25/hr in Indiana x 40 hours a week x 52 weeks a year = $1,256.66/mo x 2 people = $2,513.33/mo is how the math works out).

If the only negative mark on credit you have is a single 30-day late payment on a Cap 1 card & you have no credit card debt... a 610 score doesn't make much sense unless you have very little established credit.

What trade lines (opened or closed) are on your credit report and how many months did each report for?

Do you have any credit cards at all?  I know you said you had no credit card debt, but not sure if that means you also don't have credit cards.

[colinb913]

Blah, combined income is around 3200/month. That's what I get for posting and being sleepy..

I make $10/hour 40 hour weeks, and she makes 9.50/hour 40 hour weeks.

I have a cap one card (500) chase slate (500) 5/3 real life rewards (750) and 5/3 platinum employee card (200) 

Average age is 11 months.

[ShanetheMortgageMan]

That income is much better for the price range you are looking in, shouldn't have a problem with the $160k sales price & 20% down.

The score makes more sense given the limited credit history.  You should see a very nice bounce in your score once the late payment is removed, perhaps even up to her level.  The bank you work for is pretty good for mortgages as long as you get a decent loan officer.