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Would I Qualify


Anonymus
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Hello. I have repairing my report for sometime now and it's going well. I have 2 negative tl's left to remove. My positive tl's are 1 student loan, 1 car loan, 1 dental finance. I just was approved for 2 cc's, 1 target store card and 1 orchard bank.

My faco's thru privacyguard are

EX 664

TR 632

EQ 626

This will be my first home and I make 34k base, but overtime is plentifull, this year I grossed 40k. I am the only one working. Our goal is to be applying for a loan in 6 months. This is so my credit cards will bump my scores up and I will have refincaced the car loan and paid off the dental finance, which all should help, plus a ton of inquiries will be off by then.

Any advice whatsoever is welcome. How much do you think well qualify for? would we get stuck with a bad rate?

Most important, do you think it's realistic to get our hopes up that by mid year we will have a new home?

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By the time you are ready to apply, my experience is that your scores will be high enough that you will qualify for 100% financing.

What the rate will be, hard to tell at this time, but probably between the best rates (Conforming/Prime rates) and sub-prime. How much you will qualify for then will depend on how important rate is to you. The better the rate, the less you can borrow, due to the percentage of your income that can be devoted to debt.

Prime rate loans allow 39-42% "DTI", Sub-prime and Alt A, (which is betwen Sub prime and Prime) will allow 50% of your income to be devoted to paying all of your credit cards & car and house payments.

Hope that helps.

Charles

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A house that we would be interested in, in my area would go anywhere from 150k to 180k. Would I qualify for this amount, with any loan?

So you think this is possible? awsome.

What if I just go all out and borrow as much as I can, get stuck with this high rate (assuming I can afford it), and in a couple years when I have a great credit score refinance.

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Getting into a home now, with the plan of refinancing in 2 years and a day, is a common plan. In the sub-prime world there are some fixed rate 40/30 mortgages that you should consider. 40 year amortization with a 30 year "balloon payment". It is the best of all worlds for someone that is doing what you are planning to do. You CAN refinance in 2 years, but are not forced by increasing rates etc, to refinance for 30 years. Since the average home is either 1) sold or 2) refinanced in 5-7 years that should not be a problem.

Charles

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