Thursday, August 28, 2008

Mortgage Question: Can we be sure we will be approved?


I have a questions, we ( hubby and I) due to past problems and the very large rent we pay, have low scores. We want to purchase a home and get out of the rental deal (2700 per month). We have been gifted a good down payment of 20-25 percent. Can we be sure we will be approved?? I dont want to put money down to find out we cannot get a commitment.

Also, what are the most important items to pay off, old charge off? what would the cut of time be for those?

Thank You


Hi, Bonnie. How low are your credit scores? You can go FHA with a minimum of 560 credit scores. Old charge offs should be paid, however, if it is up to the UW's discretion. Medical debts are forgiven.

You could become pre-qualified with a manual underwrite. This means you would provide evidence of three non-traditional trade lines that you have paid on time for the last twelve months. For instance, KUB, Comcast, Verizon...anything that doesn't typically show up on a credit report. You have to provide a 12 months statement from the creditor or actual cancelled checks. Cancelled rent checks or auto insurance payments are other examples of non-traditional lines of credit.

Good luck!

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