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what are chances of approval?

Posted on: 27th May, 2007 09:18 am
I have a bk discharged 4 years now with a credit score of 620. I have 2 credit cards that are maxed out but I have had no lates in 3 years and am current on everything. My landlord was going to renew my lease for 6 months because we had told them we were looking to buy but they blindsided us with a letter stating that we will remain on a month to month but are selling the house. They are offering it to us first. Don\\\'t know if we can qualify but need to do something soon and we haven\\\'t even begun to look into mortgages. I was hoping for the six month lease to pay down the cc to improve the Fico but it doesn\\\'t look like I will be able to do that. Also, we would be first-time homebuyers. Any chance that we could get approved?
Hi Fastcheese,

Welcome to our community.

"Any chance that we could get approved?"

There is a chance to get loan approval. There are lenders who lend money to the person even having not good score. But you may get loan at very high rate.

So, my point of concern for you is not getting the loan approval but at first you need to check your loan affordability. For that you can use different calculators and check your financial position. In your post you have mentioned only your score and debts. But to get mortgage, lender will check your current financial situation.

So, I suggest that currently if your financial condition is not too good, then it's better to wait for some time. Improve your score and then apply for mortgage.

Thanks
Posted on: 27th May, 2007 09:38 pm
Hi Fastcheese,

Why don't you request from our community lenders for the quote and check whether you are getting approval or not.
Posted on: 27th May, 2007 10:54 pm
Posted: 27 May 2007 08:18 Post subject: what are chances of approval?

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I have a bk discharged 4 years now with a credit score of 620. Do you have any lates or collections after the BK? Where did you get your scores....if you use myfico.com the scores you get will be fairly close to what a mortgage broker or lender will look at I have 2 credit cards that are maxed out but I have had no lates in 3 years and am current on everything. My landlord was going to renew my lease for 6 months because we had told them we were looking to buy but they blindsided us with a letter stating that we will remain on a month to month but are selling the house. They are offering it to us first. Don\\\'t know if we can qualify but need to do something soon and we haven\\\'t even begun to look into mortgages. I was hoping for the six month lease to pay down the cc to improve the Fico conforming loans aren't score driven but it doesn\\\'t look like I will be able to do that. Also, we would be first-time homebuyers. Any chance that we could get approved?

Can you tell us a little more about your situation. What is your pre-tax monthly or annual income? What are your current monthly debts excluding your current housing costs? Do you like the current house? What is he offering to sell it to you for?
Posted on: 28th May, 2007 06:54 am
As other posters have indicated, credit score might not prevent you from qualifying for a mortgage---FHA loans are one of the best options a borrower with low scores can get...

However, I'm going to make some assumptions that might effect your ability to qualify:

a. Your credit cards are maxed-Part 1---Your DTI (debt to income) might prevent you from qualifying...
b. Your credit cards are maxed-Part 2---Could one assume that you don't have any available cash on hand for downpayment/closing costs? If this is the case, this makes a strong argument to consider FHA...

Regards,

Scott Miller
Posted on: 28th May, 2007 09:42 pm
I got my score from Scorewatch over the weekend ,which is Equifax, and it was 635. Our annual gross income is $67,900 and I just got a raise this year so it will be more like $68,000 to $69,000 for this year. We pay a total of $737 for 2 car payments each month, a personal loan payment of $180 per month and the CC payments per month are only $31 and $15. There has only been one late since the BK and that was 30 days late on CC payment in 2004. They are offering the house at $220,000 and there are things about it we like and things we don't that aren't really changeable. If we can qualify, we most likely would look at other properties. I spoke with the owner/agent today and they are really going to work with us on everything, even if we don't buy it.
Posted on: 29th May, 2007 04:39 pm
Your score is reasonably good and you would be qualify for the loan with the income you have. Check your report for any entries that have passed the sol period and dispute with the bureaus to get them removed. It would also help to improve your score. And the 30 day late also been now few years back, so you shouldn't have many hurdles.
Posted on: 30th May, 2007 07:18 pm
Hi Fastcheese,

Your have the fair credit score and definitely you get qualify for mortgage. Even you can use different mortgage calculators to check your mortgage affordability and other mortgage related stuffs.

Good Luck :) . Waiting to hear a positive reply from you soon.

Thanks
Posted on: 30th May, 2007 08:57 pm
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