Do we stand any chance of getting approved for our 1st loan?

2000gixxer · Joined: 04 Sep 2005 Posts: 6 Location: Texas

Fiance and I are looking to buy our first home soon, but not sure if we even have a shot. Here are our stats--

Fiance-
Income $55k, time on job 6 years
individual debt-$495/month car note
Individual Compass Credit Card-$1500 limit, $0 balance

Me-
Income-$55k (starting sept 15th, going from $15/hr to $55k salary in 2 weeks)
time on job, 1 year, 8 months.
Individual debt-$0
Orchard bank credit card-$200 limit, $0 balance
Orchard bank credit card-$500 limit, $0 balance
Capital one Credit card- $800 limit, $0 balance

Combined Debt-
1)Jareds Credit Card(fiance primary, me auth user)-$10,000 balance, monthly payment- $760 (limit $15,000)
2)Citibank Credit Card(fiance primary, me auth user)-$5000 balance, $100 month min payment (No limit)
3)Chase Credit Card(fiance primary, me auth user)-$8,000 balance, min payment $140 (limit $8500)
4)My truck(fiance primary, me co-signer)$38,000 balance, $725 month

Total unsecured debt-$23,000
Total payments-$2,220

her fico- 695
mine-615

Now, here is our issue. We found a home we want to buy this weekend for $167,000. In two weeks I will be selling a classic vehicle I own for $23,000. So basically all of our unsecured debt could be gone. But, i have one issue. The banks want each of our last 2 years W2's, and last months bank statements. Well, 2 years ago I had a total of 4 jobs in a 10 month period, and the final 2 months I was unemployed (fired from the last job) So knowing this, I know that wont look good to a lender, so id like to do this all in my fiances name and see if she can get the loan on the home by herself.

Do we have a shot? Should we both apply for the mortgage or try and put the truck in my name and then see if she can get it on her own? Her FICO is 80 pts higher than mine, and I have a Chapter 7 thats 2 years old. Will the lender take into consideration that all the unsecured debt will be gone in 2 weeks? Any help appreciated.

2000gixxer · Joined: 04 Sep 2005 Posts: 6 Location: Texas

Oh, and the only two lenders ive recently called were Countrywide Home Loans and First National Mortgage.

dsickler · Posted: Mon Sep 05, 2005 4:22 am Post subject:

Yes you guys do have a chance. There are still some question that a mortgage consultant will have though. Like is the income gross? or after tax? Are you guys willing to put something for a down payment, or are you guys looking for 100% financing. If we need to do a loan with just your fiances name, then you will need to change the truck into your name, since it has an affect on her income to debt ratio, and if the current income is gross, then she is already at a 50% debt to income ratio without the mortgage payment, which is usually high. If you guys buy the home with both your names, the debt to income ratio drops to 25% which is really good. So I would recommend doing it in both your names. There are some banks that will still do the loan with your bankruptcy.

you can not pay off unsecured revolving credit to qualify, because since it's revolving, you can charge it back up again.

You guys can go with a stated loan. On a stated loan, you only have to state how much you make. You don't need to provide w-2's, paystubs, or bank statements. I would recommend going with WMC. They are great at 100% financing on stated loans like this one.

David

2000gixxer · Joined: 04 Sep 2005 Posts: 6 Location: Texas

dsickler wrote: Yes you guys do have a chance. There are still some question that a mortgage consultant will have though. Like is the income gross? or after tax? Are you guys willing to put something for a down payment, or are you guys looking for 100% financing. If we need to do a loan with just your fiances name, then you will need to change the truck into your name, since it has an affect on her income to debt ratio, and if the current income is gross, then she is already at a 50% debt to income ratio without the mortgage payment, which is usually high. If you guys buy the home with both your names, the debt to income ratio drops to 25% which is really good. So I would recommend doing it in both your names. There are some banks that will still do the loan with your bankruptcy.

you can not pay off unsecured revolving credit to qualify, because since it's revolving, you can charge it back up again.

You guys can go with a stated loan. On a stated loan, you only have to state how much you make. You don't need to provide w-2's, paystubs, or bank statements. I would recommend going with WMC. They are great at 100% financing on stated loans like this one.

David

thanks a million david for the info.

Total gross income- $8800
down payment-up to $5000 (prefer 100%)

Wow, so would you use that $23,000 we are coming into to pay off unsecured debt OR to pay most of my truck off? Or would you hold onto it for closing costs and down payment?
Thanks again

If we pay all the debt off, should we close the accounts or keep them open?

biggermortgages · Joined: 04 Sep 2005 Posts: 10 Location: California

You can get a great loan easily at almost any lender.

Dont worry about your truck, but if you could get any of your cards under 25% usage (of limit) your scores would go up even more...

Keep paying on time and dont close any acts

biggermortgages · Joined: 04 Sep 2005 Posts: 10 Location: California

Closing acts will lower your score- The car (installments) dont effect your score as much as cards.... Installments do best with nice long on time history will just keep bumping you and bumping you

The best thing you could do is get the credit cards lower....Keep paying truck on time

dsickler · Posted: Mon Sep 05, 2005 4:41 am Post subject:

I would keep the 23,000 for closing costs and then save what ever is left for reserves. You always need to keep reserves just in case.

But paying off the truck will also save you more money each month. So if you can afford to pay it off, and still keep a couple of months reserves in the bank, then I would still pay off some or all of the truck.

Your truck and credit cards are most likely a high interest rate that is not tax deductible. So it is what we call non-preffered debt. The sooner you pay it off the better.

feel free to contact me if you have any questions.

Seven Figures Proman · Joined: 27 Jun 2005 Posts: 33 Location: USA

I would put a loan like yours on my wholesale line of credit at a 5.8% fixed 30 year rate at 100% loan to value, with under a "G" note in costs that we can finance into the loan and close in one day,if you like...provided all you posted is 100% true.....we need to talk!

With a million dollar line of credit I can close any loan I want,then sell it on the secondary market when I feel like it!

I have 22 years of experience of mortgage lending experience,licensed in 10 states,have an Honors Finance degree and enjoy helping people acheive the American dream of home ownership in a freindly easy manner!

email me at [EDIT: no requests to go offsite please...don't call them...they'll call you]

I can help you and be your lender for life!

Ciao,
7

2000gixxer · Joined: 04 Sep 2005 Posts: 6 Location: Texas

just an update, my average fico is 635, does that change anything?

Also, is there anyway to get 100% financing?
What if i sell the truck that has a $735/mos payment?

chow · Posted: Mon Sep 12, 2005 5:06 pm Post subject:

Those Orchard Credit cards are not doing you any favors. Those are "finance company" accounts, or "High risk" credit cards. I'd get into a home, and close those down asap. Your scores will go up with a mortgage and dropping the high risk and revolving store type accounts.

(always read who the lender is on the credit card-if it's a "finance company" don't apply for it)

2000gixxer · Joined: 04 Sep 2005 Posts: 6 Location: Texas

chow wrote: Those Orchard Credit cards are not doing you any favors. Those are "finance company" accounts, or "High risk" credit cards. I'd get into a home, and close those down asap. Your scores will go up with a mortgage and dropping the high risk and revolving store type accounts.

(always read who the lender is on the credit card-if it's a "finance company" don't apply for it)

oh wow, really?

chow · Posted: Mon Sep 12, 2005 5:42 pm Post subject:

really, flip the card over or look at the statement.

who's you're "daddy" on that card?

I'm not saying these banks are bad banks-but Orchard hasn't been known to do much other than secured, and finance company accounts.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Quote: I have 22 years of experience of mortgage lending experience,licensed in 10 states,have an Honors Finance degree and enjoy helping people acheive the American dream of home ownership in a freindly easy manner!

PMM, for all of your 'edumucation' and experience, and the qualifications that you suggested were pretty much required in another post recently, please explain to me why your sentence structure and spelling are absolutely horrid?

I'm not criticizing...much. I certainly am not the epitomy of perfection. You do however spout off quite a lot about being nearly perfect so it just makes me mildly curious.

2000- It's entirely possible to get 100% with the scores that you've stated. It's even possible you can get a fixed rate for 30 years. You may need to explain some of your employment history for 2 years ago, but for the most part if you can get all the documentation you should be ok for the most part. Depending on the loan, we frequently only need to receive the last one year of W2's, not the last two years. I don't believe based on what you've stated that it would be just a simple, piece-o-cake loan that would be done in a moments notice, but it's definitely something you can get done with the right people at your back.

chow · Posted: Tue Sep 13, 2005 9:33 pm Post subject:

Actually any loan that is secured, as your cars-and only has 6-10 months left on the loan, will be factored out of the DTI. It all depeds on the loan, and the underwriter.

You're more than welcomed to call any listed LO in the member section ans speak with us. Most of us will talk you through a whole situation or two, before we even pull credit. (I charge for that-up front, and I really do not want single family loans)

Haplo. I'm going to publically admonish you.

How dare you chase PMM.

Oh,

David chased his link off.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Chow I'm going to publicly admonish you for publicly admonishing me! I'm not asking anything more than for someone to clarify what they have already stated elsewhere in the forums.

	Mortgage Forums Forum Index -> Loan Talk	Goto page 1, 2 Next
Page 1 of 2