Do I have a chance of getting approved for a mortgage?

Deal Score0

What are my chances of getting approved for a mortgage scores 695,699,650 salary 40k, looking at homes 125k-130k. I have no car payments, I have credit card minimum payments of $ 350 and a 401k loan of $ 110. I live in Houston Texas. I can probable put down 3%-5% down. I do have a 90 day late payment on a credit card occuring in 2005. I am on a debt management program. but I have four credit cards that are not in the program and I am managing them myself. Do I even have a chance. I am looking to purchase between Sept -Oct of this year.

10 Comments
  1. Reply
    Apples to Apples
    May 3, 2011 at 4:17 am

    On the average you can count on being able to buy house that is 3 times your salary….$ 120k.
    There is a program for first time home buyers…Your scores are average so you could probably get a loan. As long as your scores are above 620 you stand a decent chance. Good luck!

  2. Reply
    bmt330
    May 3, 2011 at 4:59 am

    You have a chance, but the credit card debt lessens those chances.

  3. Reply
    mammasgonnawhupyoubad
    May 3, 2011 at 5:21 am

    there are many lenders out there right now that are begging for customers. Just be careful of the contract, baloon payments etc. The lower your score, the higher your interest payments. good luck.

  4. Reply
    iceman
    May 3, 2011 at 5:47 am

    There is a 100% chance that someone will approve. The first bank you go may not, but someone will. Your credentials are fine. You can certainly afford your house based on your salary. They say you can afford a mortgage of 3 -4 times your salary,and your credit is above average.

    The 3-5% is lower then most banks want. That is your only possible problem. Your debt should not be a major issue since your salary will leave you a good amount of breathing room. And dont forget you will probably have about 2k in closing costs as well.

    Your best bet is to go to a mortgage broker. As long as your credit scores are ok, and your income is ok ( which they both are), a broker will be able to find many banks that will approve you at good rates.

  5. Reply
    Marty S
    May 3, 2011 at 6:42 am

    I can get you approved! Just shoot me an email to msmith@premierloangroup.com, and let’s chat!

    Marty

  6. Reply
    cardinalboy97
    May 3, 2011 at 7:26 am

    They will use your middle score which is 695 — that’s pretty good in spite of the fact you have one account in a debt mgmt. program. You will heave to explain that and your 90-day late to the underwriter, but I don’t think you should have a problem getting a conventional mortgage at a good rate.

    Note of caution: Banks like to see a lot of money in your bank account when you’re applying for a mortgage (they’ll ask for 3 months worth of statements — make sure you’re free of NSFs, stuff like that).

  7. Reply
    Bruce T
    May 3, 2011 at 8:14 am

    You have a few issues to look at on an individual basis. Laws on mortgages in Texas are some of the toughest in the nation but similar to those in my state, Georgia, and were established to protect you, the consumer. The credit score used for evaluation will be the middle of the three, 695. This can achieve a 100% loan if all the other indicators allow and I will briefly explain.

    Using a Debt Management company is not good from the sense of applying for a mortgage. Why? Lenders look at this as you not being able to management your debt(s). You are “paying” someone to “pay” your bills, therefore, you will be looked at as someone not responsible enough to do same and you are a “high risk” loan. In Georgia, this type of procedure “hits” your credit with more points than does filing “bankruptcy” for most people.

    Other indicators for a mortgage include your debt-to-income ratio. You establish this by looking at all debt on the credit reports and adding the “minimum” required payments. Now, we need to do this with your projected housing payment also. Simply add what this maybe to the above and divide by your monthly income. Ideally, this should not exceed 45% of your income. Now, do same with just the projected housing payment, this should not exceeed 36%. There are many loans that allow these ratios to exceed and is considered a higher risk, therefore, your rate of interest goes up.

    Also, when planning for a mortgage, at the “closing” where you actually take possession you will be required to pay “closing” costs. You may also be eligible for a “no closing cost” loan, therefore, the rate of interest significantly increases for much higher monthly payments.

    ALWAYS consult a local mortgage broker, not these internet “crooks”. Why? A majority, not all, will charge you a “brokers commission” not required by most states to be included in the GFE, Good Faith Estimate and could be a minimum of $ 1,200. Banks, typically, are not competitive with mortgage brokers on 1st mortgages. Why? Mortgage brokers have the convenience of many lenders to shop your loan, therefore, better rates, payments, etc.

    Don’t forget documents required and typically they include last two years of Federal Income taxes, last three months (2 maybe) banking statements, latest payroll stubs for two months, a “good pay” letter or log sheet from current landlord (cannot be relative), you maybe required to show proof of rent with cancelled checks. Of course, other items will be required and whoever does your loan will know more about you than anyone else in the world.

    Don’t be discouraged from meeting with someone to discuss. If you cannot get a loan now a “good” broker can put you on the right path of home ownership.

  8. Reply
    mazziatplay
    May 3, 2011 at 8:26 am

    You are an excellent candidtae for financing at this point. Your scores are very good and with your down payment ability you may be able to choose between conventional and FHA financing.

    Make an appointment for a consultation with a mortgage banker to review your situation and find out if there is anything else you need to take care of between now and your intended purchase time frame.

    Feel free to email me with further questions.

    Good luck.

  9. Reply
    Home Loan Guru
    May 3, 2011 at 9:08 am

    Based on the info you provided, you should be able to get a home loan for the homes in the range you are looking in.

    You mentioned you are in debt management. Perhaps you could discuss your situation with your debt counselor to see what they suggest about getting a home at this time? If you determine that purchasing a home is a good situation for you, contact a number of different reputable mortgage companies. Ask for referrals from friends and family. Any trusted lender will want to put you in the best financial situation possible.

    To be honest, based on the credit score numbers you mentioned, you seem to be in pretty good shape. Your mortgage company will explain all your options and most likely find something that fits your budget.

    And only having 3-5% for a down payment shouldn”t be a problem. Most likely you’ll have to pay private mortgage insurance (PMI) until you have 20% equity in your home. Again, your mortgage professional will explain that to you and go over the costs of PMI.

    Good luck with your decision. Based on what you’ve stated, you really shouldn’t have much of a problem getting the home you want.

  10. Reply
    Hun
    May 3, 2011 at 9:55 am

    msnoddy@firstmmc.com – She helped my sister on a loan with under a 600 credit score, perhaps she can help you too? Good Luck!

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