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Old 05-19-2009, 08:41 PM
 
186 posts, read 766,811 times
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I applied for a mortgage and got approval quite easily. I have good credit (705 FICO), no late payment history whatsoever, and perhaps the only thing keeping me from a 740 is my age and credit history (32).

The problem is that I want a mortgage approval that is not contingent on me selling my existing property (which I have on the market). Currently my debt to income ratio is right at or slightly over 50% and that is with the maximum amount that this lender will give me, say that number is N.

Are there lenders that will let me go to 52% debt/income? I don't want to go around applying to lots of lenders because it will lower my credit.

Anyone know of any banks/lenders that will do this for someone with strong job history, liquid assets (stocks/bonds), 20% downpayment and strong credit with prior home and car payments? Or is this the max I'm going to get no matter where I go?
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Old 05-19-2009, 08:59 PM
 
Location: Plano, Texas
1,675 posts, read 6,647,612 times
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A majority of loans with that debt ratio will get approved. I have seem some recently as high as 58%.

You will have to qualify with both mortgage payments, so i hope the 52% you said includes both. Make sure you use a full PITI payment for each, meaning principle interest taxes and insurance.

Get a referral from a friend or relative that can give you the name of a professional mortgage broker.
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Old 06-14-2009, 09:04 PM
 
Location: In America's Heartland
929 posts, read 1,948,995 times
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I would strongly urge you to sell your sell your existing property first. I'm sure you could find a lender that will do this deal, but that does not make it a smart move.
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Old 06-15-2009, 11:20 AM
 
26,590 posts, read 57,080,856 times
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Nothing for nothing, but since when is a 705 considered "good" credit. I thought 720 was good.
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Old 06-15-2009, 11:23 AM
 
Location: Sometimes Maryland, sometimes NoVA. Depends on the day of the week
1,501 posts, read 11,132,031 times
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I'm not sure I'd believe its only your age keeping your FICO down. I was over 750 in my 20s.

You can talk to lots of lenders without having them pull your credit. Talk to several, let them run the numbers bassed on your guess, and when you find one you are happy with, then have them pull your credit.
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Old 06-15-2009, 11:25 AM
 
26,590 posts, read 57,080,856 times
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Quote:
Originally Posted by rubytue View Post
I'm not sure I'd believe its only your age keeping your FICO down. I was over 750 in my 20s.
Agreed, my 23 year old son has a 780 FICO.
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Old 06-15-2009, 11:59 AM
 
4,983 posts, read 12,670,285 times
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I would consider a 705 "good". 740+ is where you will get the best pricing from Fannie & Freddie.

FYI-many young people can have perfect credit (i.e. no late payments) and have a score in the 600's due to lack of credit history, recent account openings, balance to limit ratios, etc..
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Old 06-16-2009, 12:59 PM
 
Location: Richardson, TX
11,815 posts, read 18,849,832 times
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I don't think age has anything to do with it. Even when my 33 year old husband (who never had a credit card till I put him on mine at 28, and never a car loan until he was 29) now has a credit score of about 780.

The only other debts on there are our mortgage and a student loan.

All payments made on time.
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Old 06-16-2009, 01:27 PM
 
4,983 posts, read 12,670,285 times
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Quote:
Originally Posted by Debsi View Post
I don't think age has anything to do with it. Even when my 33 year old husband (who never had a credit card till I put him on mine at 28, and never a car loan until he was 29) now has a credit score of about 780.

The only other debts on there are our mortgage and a student loan.

All payments made on time.
Of coarse age is a factor. Length of time accounts have been established is a BIG factor.

Adding your husband to your cards probably gave him the positive history you acquired. From your numbers he has 5 years of credit history WITH a mortgage. A mortgage has the biggest impact on credit scoring.

Now compare that to a 21 year old who has had a Visa for 12 months, a car loan for 3 months, a few inquires and a $35 medical collection that he didn't know about because he has moved twice in the last 12 months. He is NOT going to have a 780 score. He may be a 640.
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Old 06-16-2009, 01:30 PM
 
4,983 posts, read 12,670,285 times
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Quote:
Originally Posted by TimtheGuy View Post
I would consider a 705 "good". 740+ is where you will get the best pricing from Fannie & Freddie.

FYI-many young people can have perfect credit (i.e. no late payments) and have a score in the 600's due to lack of credit history, recent account openings, balance to limit ratios, etc..
oh, I see I all ready posted a quick list of reasons a young person might have a lower score. I guess Debsi must be disputing the FYI reasons I list above.
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