credit score analysis & Loan - need advice (PMI, 401k, business credit)

[newhomebuyer80]

credit score analysis & Loan - need advice
Hey all,
I am a new home buyer
Please advice me to take me to right direction...

My current situation:
** Around $40K on Personal credit card Limit - only 2% balance ( means still have around 39K)
** Fico Score - Equifax - 754 as of Nov 23rd 2008
** Car Loan - $14,900 balance as of today
** I have Business credit card with $21K limit

Currently I am looking for home in SCR & Sienna Plantation. I am looking to move in on May 2009.

Question
I did the balance transfer on Nov 10th from Business credit card to my bank account. $19000
1. If I sign the contract for new home in Dec 1st week, When will I sign the bank loan for new home
2. When the lender analyze my loan, do they check my business credit card report?
3. When the lender ask my bank statements, how many months bank statement they will ask , because, I dont want them to find out big amount dropped in my account
4. I believe business credit card money withdraw will not affect my credit score
5. Mortgage rate will go up by the time I run the loan for closing? 3-4 months after sign the contract ( assume March - April)???

[annerk]

Originally Posted by newhomebuyer80

credit score analysis & Loan - need advice
Hey all,
I am a new home buyer
Please advice me to take me to right direction...

My current situation:
** Around $40K on Personal credit card Limit - only 2% balance ( means still have around 39K)
** Fico Score - Equifax - 754 as of Nov 23rd 2008
** Car Loan - $14,900 balance as of today
** I have Business credit card with $21K limit

Currently I am looking for home in SCR & Sienna Plantation. I am looking to move in on May 2009.

Question
I did the balance transfer on Nov 10th from Business credit card to my bank account. $19000
1. If I sign the contract for new home in Dec 1st week, When will I sign the bank loan for new home
2. When the lender analyze my loan, do they check my business credit card report?
3. When the lender ask my bank statements, how many months bank statement they will ask , because, I dont want them to find out big amount dropped in my account
4. I believe business credit card money withdraw will not affect my credit score
5. Mortgage rate will go up by the time I run the loan for closing? 3-4 months after sign the contract ( assume March - April)???

1. If that $19K is downpayment funds, it's not going to work. You can't borrow d/p money except if it's from a 401K or IRA. As far as signing the note at closing, it entirely depends on your contract and agreement with the seller.
2. They might check your business credit report. They will want to see the past two years tax returns, and they need to show a profit. They will also want to see business checking account statements.
3. They could go back as far as six months, probably three. They WILL find that money. They aren't stupid.
4. The business card most certainly might affect your credit score, it depends on what type of entity your business is. At one point I had a company credit card from the company I worked for, it appeared on my credit report.
5. The chances of you signing a contract in December and not closing until March or April is slim. Most closing happen within two months (60 days) Who knows what rates will do, but I suspect they will rise.

[ShanetheMortgageMan]

Attempting to conceal the source of where down payment funds originated from is considered fraud. Just my advice.

[newhomebuyer80]

OMG,
Thank you very much guys.
So far when I tried to pull up my FICO score, I didnt see the business credit card transactions.
Anyhow, when you said that attempting yo conceal the source funds is fraud - IS IT REALLY TRUE, I am going to return the money back to business card.

[VictorBurek]

It is only fraud if you attempt to conceal, if you didnt know you didnt know. However, the lender when reviewing your bank statements will ask you where the large deposit came from, once you tell them you did the advance(cause here is where you could commit fraud) they wont allow that as down payment money.

[newhomebuyer80]

Thanks for your replies Friends.

I returned the Money to credit card. I am not keeping any of that money. Anyhow, I signed the contract yesterday for new home , Pearland TX.

I paid the credit card money already. Purchase price of the house is $255,000. Bank of america no PMI no closing fees deal , I have to put $25,500 down payment. I have 5 Months to collect the money. BOA lender csr was so nice compared with other bank people. Right now I have $10K, I put $2K on earnest money, $ I need to save $13K, I am confident that I will make it, And also I asked lender that if i borrow money as a gift, I need to fill the form cant be more than $7K, its just an option for me.
I am going to open joint account with my wife, I will keep all the money in that joint account. So that we will know how much we can handle it.
Thanks for your great advice guys.

[newhomebuyer80]

Originally Posted by annerk

5. The chances of you signing a contract in December and not closing until March or April is slim. Most closing happen within two months (60 days) Who knows what rates will do, but I suspect they will rise.

what do you mean 60 days, House cant be completed in 3 months, House builder told me that it will take May 30, 2009. I am going to stick to that date. What should I do if they ask me to move in earlier as they want?

[annerk]

Originally Posted by newhomebuyer80

what do you mean 60 days, House cant be completed in 3 months, House builder told me that it will take May 30, 2009. I am going to stick to that date. What should I do if they ask me to move in earlier as they want?

Sorry, didn't realize it wasn't built yet. Very seldom does new construction finish early. Late is far more likely. My house was over six months past the original completion date when we finally got the keys.

[brokerdave]

my home finished a month early, i made them wait to close.