Is this good enof to get apporved for a home loan?

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:I am buying a house for 305,000 I’m putting down 105,000 but my credit isn’t so great betweeen me and wife it is 603-660 we make a little over 100,000.We where later on credit card 2 months in a row thought I payed it off and never used po box it was sent to again this was within the past few months and we have a few over credit line in the past few years.Never late on car loans or my old mortgage or rent.We have like 20 thousand in car loans and about 7 thousand in credit cards.What are our chances of getting aproved for 200,000?

I am buying a house for 305,000 I’m putting down 105,000 but my credit isn’t so great betweeen me and wife it is 603-660 we make a little over 100,000.We where later on credit card 2 months in a row thought I payed it off and never used po box it was sent to again this was within the past few months and we have a few over credit line in the past few years.Never late on car loans or my old mortgage or rent.We have like 20 thousand in car loans and about 7 thousand in credit cards.What are our chances of getting aproved for 200,000?

9 Comments
  1. Reply
    Landlord
    January 20, 2011 at 6:04 am

    I think you will get approved. However, your interest rate will be 7’ish with the bad credit.

  2. Reply
    angela c
    January 20, 2011 at 6:54 am

    Sounds like you should have no problem. Home loans are the easiest to get because the house is worth more than the loan. Good luck.

  3. Reply
    Val
    January 20, 2011 at 7:29 am

    Very Good !!! You should have no problem with over 33% down!!!

  4. Reply
    frak1a12345
    January 20, 2011 at 7:35 am

    This is just my opinion. I think you have a 50/50 chance of being granted your loan. The down payment is very good as is your income but the negatives of low FICO scores and high current credit card debts and auto loans would outweigh the positive of the big down payment. And in the current credit environment the lenders are looking very closely at all applications. It doesn’t hurt to ask so I would say apply anyway. Just be sure that if this is in conjunction with a purchase offer on a piece of real estate that your offer has a contingency clause in it that lets you out if you can’t get financing.

  5. Reply
    RM
    January 20, 2011 at 8:31 am

    You have to have a super low debt-to-income ratio with that kind of credit. And you will get screwed on the rate (rates are good now but with that credit, good luck getting below 7%).

    Lenders now penalize borrowers for having credit below 680, having less than 20% down payment (high LTV), and for certain types of loans (cashout refinances for example often carry a penalty).

  6. Reply
    yoko1san
    January 20, 2011 at 9:02 am

    You will get approved but the interest rate will be high. Besides lenders don’t just look at your credit score, but consider your entire credit history such as all the payment info, number of times items were past due, amount owing on accounts, proportion of credit lines used to total credit limits on revolving accounts, length of credit history etc.

  7. Reply
    godged
    January 20, 2011 at 9:37 am

    With your big downpayment, you’ll be fine. However, if you get those scores both over 620, you will be much better off.

  8. Reply
    donfletcheryh
    January 20, 2011 at 9:42 am

    With 30% DP, most credit granters will almost ignore a poor credit rating. I say almost because they are likely to add to your interest rate.

    If you go in prepared to show that you have a good cash flow and 30% down, be prepared to argue for prime mortgage rate. You will get it from someone.

    If the lender is holding a mortgage in default on this property, you will be welcomed with open arms. But, big but, they may be asking more than market value to recover their whole mortgage value. Be prepared to haggle, even walk to get current market value.

  9. Reply
    SPIFIMAN1
    January 20, 2011 at 10:05 am

    Yes you should be approved, but how many times are you going to ask this question?

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