We've been pre approved on a home mortgage loan but how likely is it for us to get the loan?
My husband has been working at his current job for 5 yrs. He makes around 40,000 a yr and i currently am a stay at home mom with our 7 month old daughter. We are first time home buyers and We applied for a home mortgage loan at wells Fargo and got pre approved for a 85,000 loan threw FHA. We found the house we wanted and the loan is with a loan document specialist. They said after they got the documents they would send it to an underwriter for final approval. My husbands credit score is 650 and mine is 610. We have two car payments one is $180 a month and the other is $227 a month. These are the only two debts we have. We have been stressing out so much just hoping this loan goes threw!! We want a home so badly! If anyone can give us some information it would be greatly appreciated... :)
I have a car loan that was under myself and my mom i got when i was in high school. We haven't missed any payments. My husband and i just got the new car in february. That is why his credit score isnt very high. The reason I think mine it is low is because I have the older car and added the newer car to my debt as well. I read that if you add more debt to your credit it can lower your score but with time it goes up with payments made. We have not missed any payments at all. Plus when the loan officers check credit scores and get a hard copy of it, it can lower the score. In January my score was 700 but adding the new car and getting approved for the loan has made it go down.
- JimLv 48 years agoBest Answer
The bank that I work for sells our fha loans to Wells, so I am very familiar with their underwriting. I think you're going to have to put the loan in just your husband's name. Typically the minimum scores are going to be 640.
If you have no collections or judgments that total over $1000 you should be good to go from a credit perspective. If your debt/income ratio is below 50%, you would qualify there. If all you have is the two carrs, then you would be fine. And assuming your husband has had steady income for 2 years...you should be good to go.
- acermillLv 78 years ago
The final work will come once the loan underwriter receives your credit reports, analyzes then, and then also analyzed your 'debt to income ratio'. Your score is too low, and your husband's score is marginal. As well, do not forget that you must have 3.5% of the purchase price in ready cash as a required downpayment, plus loan origination and closing costs.
- 8 years ago
Relax, if you were pre-approved and haven't had any major changes in your finances or made any big buys lately, everything should be fine as long as you stayed within the amount you were approved for.
I know that the waiting and the "what if's" that come with buying your first home cause major jitters but you guys were smart in getting approved before looking.
Congrats on the house! Hope it all works out!
- Go with the flowLv 78 years ago
Something is wrong.
All you have is two car payments?
Then why are your scores so low?
Have you ever looked at your credit reports?
You must have been late on something, or you have something in collections.
Reports are free at Annual Credit Report.com