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Getting Preapproved w/Mortgage Late?


coloradocutie
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Hello. I'm new to these boards but have been reading them like a madwoman. There is so much great information, here! And so much support.

Our situation is this: In 2002, we built a home that was a bit above our comfort zone. We financed it with an FHA ARM at 5% (our current rate is 4.75% after having been 4.12% -- we got pretty lucky with the adjustments). We rationalized that the payment stretch was worth it because I would be graduating from law school in a couple of years and my income would help ease the burden.

Long Story Short: I took some time off to have a baby and because of DH's changing work schedule conflicting with my schedule and am now still 1-2 years away from the golden paycheck. Last May our escrow payment increased sharply from $150/mo. to $500/mo. because our first year taxes only reflected the land and not the house (because the house was still being built for most of the assement year).

So, already stretched to the max, we were unable to keep current with the mortgage and were 90 days late making the payment. The payments are now current and have been since Oct. 05. Everything I have heard and read indicates that Mortgage lates are the WORST when trying to qualify for a new mortgage. How much is this going to hurt us?

Also, we have some paid collections (one is very recent) and are paying off some old (charged-off in 2003) CC debt. We have two cars and they are both current and student loans are in deferment.

DH had a bankruptcy in 2000 and I had a judgment (paid) in 2000 (on record til 2008)

So, our debts look like this:

Income: $43464/yr

Cars: 825/mo (one car to be paid off within 10 mo.)

CC: ~3K (will be paid prior to closing)

We are looking at homes in the $150-175K range w/10-15% dn (we have some home equity). We're trying to get out of this house before our rate adjusts again and would like to do it now since we are coming up to prime selling time. Also, the payment is still a stretch for us and we are tired of living paycheck to paycheck because of our mortgage.

Is there anyway we can qualify for this amount with our credit? What is our best bet? FHA or conventional? What kind of rate might we be looking at? We would like a 30 yr. fixed this time around. Wells Fargo prequalified us for 120k but I don't believe anything until it's in writing. I was thinking about calling Countrywide next.

Thanks!

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Hello. I'm new to these boards but have been reading them like a madwoman. There is so much great information, here! And so much support.

Our situation is this: In 2002, we built a home that was a bit above our comfort zone. We financed it with an FHA ARM at 5% (our current rate is 4.75% after having been 4.12% -- we got pretty lucky with the adjustments). We rationalized that the payment stretch was worth it because I would be graduating from law school in a couple of years and my income would help ease the burden.

Long Story Short: I took some time off to have a baby and because of DH's changing work schedule conflicting with my schedule and am now still 1-2 years away from the golden paycheck. Last May our escrow payment increased sharply from $150/mo. to $500/mo. because our first year taxes only reflected the land and not the house (because the house was still being built for most of the assement year).

So, already stretched to the max, we were unable to keep current with the mortgage and were 90 days late making the payment. The payments are now current and have been since Oct. 05. Everything I have heard and read indicates that Mortgage lates are the WORST when trying to qualify for a new mortgage. How much is this going to hurt us?

Also, we have some paid collections (one is very recent) and are paying off some old (charged-off in 2003) CC debt. We have two cars and they are both current and student loans are in deferment.

DH had a bankruptcy in 2000 and I had a judgment (paid) in 2000 (on record til 2008)

So, our debts look like this:

Income: $43464/yr

Cars: 825/mo (one car to be paid off within 10 mo.)

CC: ~3K (will be paid prior to closing)

We are looking at homes in the $150-175K range w/10-15% dn (we have some home equity). We're trying to get out of this house before our rate adjusts again and would like to do it now since we are coming up to prime selling time. Also, the payment is still a stretch for us and we are tired of living paycheck to paycheck because of our mortgage.

Is there anyway we can qualify for this amount with our credit? What is our best bet? FHA or conventional? What kind of rate might we be looking at? We would like a 30 yr. fixed this time around. Wells Fargo prequalified us for 120k but I don't believe anything until it's in writing. I was thinking about calling Countrywide next.

Thanks!

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with 20% dn. LO said 90 day mortgage late was the only reason they required such a hefty down payment. I don' t think we can get enough equity out of our house for that sort of payment and would really like to stay around the 10-15% (honestly, closer to 10%). I think we need a mortgage broker to get us the best rate. DH doesn't agree. Can anybody give me any advice? Is 80% LTV the best we can hope for because of the mortgage ding? Would a broker be able to get us a better rate?

TIA

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