Posted on: 21st Aug, 2008 05:50 am
I'm beginning the process of searching a mortgage, and I'm not sure what I should expect as far interest rates, limits and terms.
My background is this: Self-employed for 4 years, annual income about 150,000.
The Current mortgage has been paid on time for 5 years, never late ever. Car loan current as well, on time for 2 years never late.
My scores are 676, 650, 643 due to some charged off accounts from 3-4 years ago due to a divorce. All of them have been paid or settled, no outstanding debt or collections.
(There is actually one open collections account on my reports that is an error that I'm working to remove- hopefully that will help my scores a bit)
I'm currently using ZERO revolving credit, the only debt I'm carrying is my car loan and current mortgage.
My wife's scores are all over 700, about 708-720 last we checked. She's using about 20% of her revolving credit. She is jointly listed on the car loan but not on the current mortgage.
We're looking at purchasing a home in the 275-350k range. The payments will be no problem for me in that price bracket.
I'm searching for a loan that will allow 5-10% down payment.
With all that said...are my expectations realistic and what should we expect to get as far as rates go?
Additionally, will we have a problem securing a new mortgage if our current home is listed for sale? (current mortgage is only about $900 per month)
Thanks for any and all assistance or opinions you can give!
My background is this: Self-employed for 4 years, annual income about 150,000.
The Current mortgage has been paid on time for 5 years, never late ever. Car loan current as well, on time for 2 years never late.
My scores are 676, 650, 643 due to some charged off accounts from 3-4 years ago due to a divorce. All of them have been paid or settled, no outstanding debt or collections.
(There is actually one open collections account on my reports that is an error that I'm working to remove- hopefully that will help my scores a bit)
I'm currently using ZERO revolving credit, the only debt I'm carrying is my car loan and current mortgage.
My wife's scores are all over 700, about 708-720 last we checked. She's using about 20% of her revolving credit. She is jointly listed on the car loan but not on the current mortgage.
We're looking at purchasing a home in the 275-350k range. The payments will be no problem for me in that price bracket.
I'm searching for a loan that will allow 5-10% down payment.
With all that said...are my expectations realistic and what should we expect to get as far as rates go?
Additionally, will we have a problem securing a new mortgage if our current home is listed for sale? (current mortgage is only about $900 per month)
Thanks for any and all assistance or opinions you can give!
I'm beginning the process of searching a mortgage, and I'm not sure what I should expect as far interest rates, limits and terms.
My background is this: Self-employed for 4 years, annual income about 150,000. Is this the net income on your schedule C? That is what the underwriter will be looking at....
The Current mortgage has been paid on time for 5 years, never late ever. Car loan current as well, on time for 2 years never late.
My scores are 676, 650, 643 due to some charged off accounts from 3-4 years ago due to a divorce. All of them have been paid or settled, no outstanding debt or collections.
(There is actually one open collections account on my reports that is an error that I'm working to remove- hopefully that will help my scores a bit)
I'm currently using ZERO revolving credit, the only debt I'm carrying is my car loan and current mortgage.
My wife's scores are all over 700, about 708-720 last we checked. She's using about 20% of her revolving credit. She is jointly listed on the car loan but not on the current mortgage.
We're looking at purchasing a home in the 275-350k range. The payments will be no problem for me in that price bracket. Are you planning on selling your cureent home? Or using it as a rental?
I'm searching for a loan that will allow 5-10% down payment. Depending on where you live you may or may not be within FHA guidelines which would allow for a down payment as low as 3-3.5% depending on when you close....You need to get your scores over 660-680 in order to put 5% down or MI will not be available leaving FHA as the only option.
With all that said...are my expectations realistic and what should we expect to get as far as rates go?
Additionally, will we have a problem securing a new mortgage if our current home is listed for sale? (current mortgage is only about $900 per month) It depends on how your tax returns look and your net income....so no way to answer that without seeing them.
Thanks for any and all assistance or opinions you can give!
My background is this: Self-employed for 4 years, annual income about 150,000. Is this the net income on your schedule C? That is what the underwriter will be looking at....
The Current mortgage has been paid on time for 5 years, never late ever. Car loan current as well, on time for 2 years never late.
My scores are 676, 650, 643 due to some charged off accounts from 3-4 years ago due to a divorce. All of them have been paid or settled, no outstanding debt or collections.
(There is actually one open collections account on my reports that is an error that I'm working to remove- hopefully that will help my scores a bit)
I'm currently using ZERO revolving credit, the only debt I'm carrying is my car loan and current mortgage.
My wife's scores are all over 700, about 708-720 last we checked. She's using about 20% of her revolving credit. She is jointly listed on the car loan but not on the current mortgage.
We're looking at purchasing a home in the 275-350k range. The payments will be no problem for me in that price bracket. Are you planning on selling your cureent home? Or using it as a rental?
I'm searching for a loan that will allow 5-10% down payment. Depending on where you live you may or may not be within FHA guidelines which would allow for a down payment as low as 3-3.5% depending on when you close....You need to get your scores over 660-680 in order to put 5% down or MI will not be available leaving FHA as the only option.
With all that said...are my expectations realistic and what should we expect to get as far as rates go?
Additionally, will we have a problem securing a new mortgage if our current home is listed for sale? (current mortgage is only about $900 per month) It depends on how your tax returns look and your net income....so no way to answer that without seeing them.
Thanks for any and all assistance or opinions you can give!
thanks for the quick response. Yes, my income is on my schedule C...the 150,000 is my self-employed income after expenses. Before expenses it is over 200k.
And yes, I'm planning one selling my current home.
And yes, I'm planning one selling my current home.
ok well on the surface it looks like you will be fine......
im in agreement with cedric - even retaining the existing home ought not to do you in. with your earnings, you sure seem to be in the right price range (don't forget to factor real estate taxes into your equation).
at the present time you can find rates below 7% with points; above 7% with no points (in general). if you can qualify for an fha loan, you won't be penalized for the credit scores at all; with conventional loans, there are point add-ons for score, also dependent on money down.
at the present time you can find rates below 7% with points; above 7% with no points (in general). if you can qualify for an fha loan, you won't be penalized for the credit scores at all; with conventional loans, there are point add-ons for score, also dependent on money down.
thanks for the responses.
Let me throw someting else in here...would it make more sense to apply in my wife's name since her credit is better?
Is something like this even possible?
Let me throw someting else in here...would it make more sense to apply in my wife's name since her credit is better?
Is something like this even possible?
you never mentioned your wife's income - can she qualify for a loan in the price range you're talking about? that's the key question.
the difference in pricing for an fha loan is minimal with your scores the way they are. keep in mind that a lender is going to pull a new credit report and that your scores are not going to be the same as what you've already seen.
from my point of view, i would think your original plan - to apply jointly - makes the most sense.
the difference in pricing for an fha loan is minimal with your scores the way they are. keep in mind that a lender is going to pull a new credit report and that your scores are not going to be the same as what you've already seen.
from my point of view, i would think your original plan - to apply jointly - makes the most sense.