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My husband and I are first time home buyers. We tried in 07 to buy a home, but we couldn't get approved because of the credit. We tried last year and they said they would try, but they couldn't promise anything. This year they pulled my husband's credit and his credit scores were 645, 634, and 638. All over 620. Only issue was my credit scores were all under 620. We agreed that he could do the loan on his own and I would go on the deed. Clayton Homes sent everything to the lender American Security Mortgage. It came back two days later with a pre approval of 185,000. They got the pre approval through the DU system for a USDA loan. This was last week. They had us pick our home out, pick out the colors, and pick a piece of land. We wrote a check to them for 1500 to cover appraisal, inspection, title search, and we were told we were get it back at closing. They do in house underwriting, and the lender keeps saying he doesn't think we will have a problem. I getting really nervous, because this is the furthest we have ever gotten. We never got pre approved through the DU system before. Our stuff went to the underwriter today and we are expecting to hear something Wed, but I am about to puke because of worry. Everything we gave the lender is the truth. Everything he asked for we gave it to him. I guess I need some reassurance that everything is going to be okay. I don't know if I could deal with another let down. We have worked hard for 2 years to get everything straight. We have paid off bills, and only bills we have left are the car loans and they are in my name.
Last edited by scmommyof3kids; 02-01-2010 at 02:34 PM..
Reason: add more info
Stop concentrating on your credit score and look at your ratio's. That is what the underwriters will do. How much do you make? How much do you owe? How much is the house you want to buy? What kind of down payment do you have?
My husband is doing a USDA 100% loan. My husband has no debt, and he is the one going to be on the loan. We have 5500 in our savings account, and that doesn't include the 1500 for the stuff stated above. My husband makes around 4300 a month. And the monthly payments would be around 1100 a month.
Have you included tax and insurance in your monthly payment calculations? You didn't say how much the house was. $185,000 seems a bit high for the income stated.
With no other debts, your husbands debt to income ratio is not a concern. At most with taxes and insurance the mortgage payment will be $1700 which makes the DTI 1700/4300 = 39%. That is well within acceptable range for DTI.
We included taxes and insurance in this amount. We did not use the full amount. With the home and land the total cost is around 160,000.
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