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My wife and I recently sold our home of 11 years to get our kids & family in a better area. We have been looking at homes in an area we like with homes prices in the 350K - 400K range. Our credit scores are not good due to some old student loans and current revolving debt. We can put up to $84K down on a home, and our income is 144K a year. Surely this will mitigate some of the lenders risk, plus we have paid our current mortgage for 11 years with only 2 late payments in 11 years. Last late payment being 4 years ago.
I am praying we didn't make a miscalculation in selling our home. Surely with our high income and good cash down somebody will give us a reasonable mortgage.
We need to get this done before school starts. I can hear the clock ticking louder everyday.
You need to be specific on your credit scores to know. Most conventional lenders don't like to see below 620. Some will go 600. What's "not good" to you? FHA scores can go down to 580...
Mortgages are about credit risk, not just about income and money down. You already admitted to missing 2 payments and messing up your student loan.
If you have lower than 600 I think you're going to have a hard time. A huge down payment is good, but good credit is better and income to debt ratio is what a lender looks at. You should have talked to a lender before you sold your home. I would call one ASAP so you know where you stand! Your lender that you have on your current home might be a good place to start. You might have a better chance getting another loan with them.
You need to be specific on your credit scores to know. Most conventional lenders don't like to see below 620. Some will go 600. What's "not good" to you? FHA scores can go down to 580...
Mortgages are about credit risk, not just about income and money down. You already admitted to missing 2 payments and messing up your student loan.
I didn't miss 2 payments, but I was late 2 times a few years back. At the time I had no idea of the importance of paying on time. Very naive.
If it's all about risk I would say paying a mortgage with 3 late payments in 11 years is a good risk. Thats 132 payments, and three late days.
Just to give a little background. When we purchased the house we just sold we had a 6.5% rate, and we stuck with that for 11 years. We thought after paying this for 11 years our credit would be better. I understand now that my credit will fluctuate a little but for the most part it is stuck where it is. My wife and I are blessed to have very stable jobs with good pay....but sucky credit. We will always pay our bills, but being late a few times out of hundreds of payments has created the "high risk".
Are your credit cards maxed? This makes a huge impact on your credit score.
How soon are you looking to buy? I know you said before the school year starts, but you are pretty much at that deadline now. Depending on where you live, you are 4-8 weeks away. I assume by your question, you are not even prequalified. If you started everything today, it is likely to take you 6 weeks minimum to get everything done and close on a house. Are you planning on renting as a fall back? I ask because it may be more beneficial to wait 6-12 months to purchase and work on that credit score instead.
Without the specifics, it's hard for people to give much of an answer so giving the actual scores will help, as well as your total debt to compare against income.
But having debt doesn't mean your credit score is low, it's the late payments that do it. When were they? The more recent, the more impact they will have.
My wife and I recently sold our home of 11 years to get our kids & family in a better area. We have been looking at homes in an area we like with homes prices in the 350K - 400K range. Our credit scores are not good due to some old student loans and current revolving debt. We can put up to $84K down on a home, and our income is 144K a year. Surely this will mitigate some of the lenders risk, plus we have paid our current mortgage for 11 years with only 2 late payments in 11 years. Last late payment being 4 years ago.
I am praying we didn't make a miscalculation in selling our home. Surely with our high income and good cash down somebody will give us a reasonable mortgage.
We need to get this done before school starts. I can hear the clock ticking louder everyday.
Help!!!
What 3 scores did a mortgage company pull? Credit Karma, MyFico, and whatever BS is in your Capital One statement, are not what we are looking for.
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