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Buying house in future, anyone work for a mortgage lender?

Posted by Anonymous   + Show Post

My husband is going to be applying for a mortgage loan on his own because I have a high amount of student loans.  We live in Michigan and they do not force both spouses to apply.  We will be first time home owners with bad credit in the past but have been working on it. 

Right now his middle Fico 8 score is 652, middle score for mortgage is 633.  He has $3500 in credit card debt right now, DTI is 15%.  We plan to start looking for a mortgage company middle of March.  So my question is should he try to pay down the credit cards some to raise his score and have more options than just FHA or should we just start saving for more than the 3.5% down that FHA requires? 

Thank you!

Posted by Anonymous on Jan. 13, 2018 at 9:14 PM
Replies (41-46):
mommyof11050307
by Ruby Member on Jan. 14, 2018 at 1:29 AM
My husband had 10 or 15k less than I did in debt and they still look at it. The looked at the payments and how much it was all together. I have 74k debt and I think my husband had 60 or 65k debt. It had both cars on his and I think 2k in collections that we paid for but popped up at the last min before closing. And I wanna say he has 20k in student loans. My student loans is pushing 20k but I’m still in school. Even if the student loans aren’t being paid on they still count it.

Quoting Anonymous 1:

I wonder if it makes a difference that I am not in a community property state.  If they only look at the monthly payment amounts to determine DTI even with the student loans we would be under but if they look at what is owed it may hurt us. 

Quoting mommyof11050307: I believe so but I didn’t apply for a loan at all with my husband. They still took my debt and counted it for debt to income. I’m on the deed but not the loan.

Quoting Anonymous 1:

Are you in a community property state?

Quoting mommyof11050307: I’m NOT on the home loan either and they counted both of our debts when it came to debt to income ratio.

Quoting Anonymous 1:

I was told that our state does not require me to be on the loan if I do not want my income considered but I have to sign of the home deed.  My husband makes enough on his own to get the loan. 

Quoting mommyof11050307: Your debt is also counted along with his debt. I’m not on my husbands loan for our house but they counted my debt with his.

Anonymous
by Anonymous 10 on Jan. 14, 2018 at 1:54 AM

I'm a Realtor.  Your downpayment doesn't mean as much as your credit score.  You absolutely need to pay those cards down and NOT charge more.  (Biggest horror story was the guy who planned on proposing to his girlfriend at the settlement table, so yeah - he charged a ring the week before before.  Credit is checked again the week before closing so he couldn't buy the house.)

Most lenders look for a 620 for an FHA loan, so you're good in that regard (but you can go as low as 580 for anyone who is curious).  The best thing for you to do right now is to find a lender - you can go to your bank first - and get a pre-approval.  They'll tell you what you are qualified to buy and give you pointers on what to do if you want to try for a conventional loan, and they also can tell you of any new programs like First-Time Homebuyer that will assist you.

I don't know where you live, but homes are selling like hotcakes in my area, and when it comes to a bidding war, sellers will go with the strongest buyer.  I've seen a lot of people with FHA loans lose out because the seller takes the offer with the conventional loan.  Not to discourage you, because you can only do what you can do.  Lots of people think they can only afford an FHA and are surprised to learn that they can go conventional.  Good Luck!

Anonymous
by Anonymous 11 on Jan. 14, 2018 at 3:02 AM
We used Guild Mortgage when we bought our house. We did like you & only dh is on the mortgage, but we're both on the deed as owners. The lady at Guild was very nice & looked at our situation & gave us advice on what to do to give us the best chance at getting the mortgage. Our mortgage was in & out of underwriting in just a day or two, much faster than I'd expected.
I'd suggest you give them a call & see what they say.
Anonymous
by Anonymous 11 on Jan. 14, 2018 at 3:08 AM
They didn't ask anything about my income or debt when dh applied for our mortgage (I say our since it's our house & I actually make the payments, but it's just in his name). I have no clue if my state is a community property state, but my student loans are from prior to my marriage.

Quoting mommyof11050307: My husband had 10 or 15k less than I did in debt and they still look at it. The looked at the payments and how much it was all together. I have 74k debt and I think my husband had 60 or 65k debt. It had both cars on his and I think 2k in collections that we paid for but popped up at the last min before closing. And I wanna say he has 20k in student loans. My student loans is pushing 20k but I’m still in school. Even if the student loans aren’t being paid on they still count it.

Quoting Anonymous 1:

I wonder if it makes a difference that I am not in a community property state.  If they only look at the monthly payment amounts to determine DTI even with the student loans we would be under but if they look at what is owed it may hurt us. 

Quoting mommyof11050307: I believe so but I didn’t apply for a loan at all with my husband. They still took my debt and counted it for debt to income. I’m on the deed but not the loan.

Quoting Anonymous 1:

Are you in a community property state?

Quoting mommyof11050307: I’m NOT on the home loan either and they counted both of our debts when it came to debt to income ratio.

Quoting Anonymous 1:

I was told that our state does not require me to be on the loan if I do not want my income considered but I have to sign of the home deed.  My husband makes enough on his own to get the loan. 

Quoting mommyof11050307: Your debt is also counted along with his debt. I’m not on my husbands loan for our house but they counted my debt with his.

SamanthaSmith
by on Feb. 2, 2018 at 5:17 AM

I always wanted to buy a house near the sea and lease it for summer. I think it could be a good investment. My husb has already found one company here https://www.turkeyhomes.com/properties/turkey-region/fethiye with the office in London, they help to find property in Turkey in various areas and at affordable prices. We want to buy a house in Fethiye in the beach area.

Anonymous
by Anonymous 12 on Feb. 2, 2018 at 5:43 AM
I am not in the mortgage business, but paying down that CC will not drastically raise your FICO score quickly. However, if it is high interest debt, you're better trying to pay it off quickly. If you can't/haven't paid it down yet, I'm guessing you're not ready for a mortgage. Fix your bad credit issues...fix your saving and spending habits. Get a good chunk saved for a down payment, then start your mortgage shopping. Above all... BEWARE of the fact that mortgage companies are in the business of selling you money. To be pre-qualified for a certain amount does not mean you can actually afford that amount... know what you are capable of paying monthly before you go in to talk mortgage. Start backwards, take out all of your current expenses, minus rent expenses (gas, cars, groceries, clothing, student loans, savings, insurance, retirement, entertainment, etc) ... calculate in what local property taxes, insurance, utility rates, and general upkeep would cost you and then what you have left is what you can comfortable afford for a monthly mortgage payment. It will likely be very different than what a mortgage company tells you. good luck.
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