Home Buying in Katy>Question Details

ashgal85, Home Buyer in Katy, TX

Can I get a mortgage?

Asked by ashgal85, Katy, TX Thu Mar 7, 2013

I make $63,000 a year, my mid credit score is 652, I have 1 think on my credit a collection from 2009 for $9,000. I have current 1 car note and 2 credit cards that have all never been late. My DTI is 45%. Can someone tell me if you think I will be able to buy a home with all of these factors?

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Tamika Goree’s answer
It would be better to consult with a lender. No two lenders are alike. So what one lender can't do, another lender might be able to. It sounds like you have good credit except for the collection from 2009. The amount is what struck me that might be an issue. So there may be a possibility that the lender might make you pay that debt off. Again, this is just my opinion. I'm not 100% sure. My advice would be to contact a few lenders (at least 3) and tell them your situation. You have the option to shop and compare lenders and I always highly recommend for my clients to do so.

Make it a Great Day!

Tamika A. Goree
Broker | Owner
The DFW Property Shop
Cell: 972.697.1178
Fax: 972.665.7148
Email: tamika.goree21@gmail.com
0 votes Thank Flag Link Fri Mar 8, 2013
I have the guy that can answer that!
http://www.chadploans.com
apply online and get an answer in 24 hrs.
0 votes Thank Flag Link Wed Apr 10, 2013
Not sure about that 9000 collection Contact. Kitty.tennison@i,mortgage.com I have been referring her for over 15 years. She is the best. Once she approves you she will contact me

Laurie lujan. Llujan@remax.net. Good luck
0 votes Thank Flag Link Tue Apr 9, 2013
To take the guess work out of the situation. I believe it is best to consult a lender!
0 votes Thank Flag Link Fri Mar 8, 2013
To be upfront with you, the only real issue I see is the $9K collection. Here's the story. When an Underwriter looks at your file, they understand that most people have weathered some financial storms in their life. But they have to look at what can impact the ability of a borrower to make their future mortgage payments. Most Underwriters are not knowledgeable in the areas of what is a legally a collectable debt like an Attorney or Credit Specialist is. Although this varies from state to state generally the Statute of Limitation for debt is 4 years. So depending how sharp your Loan Officer is, having a collection on your credit report can sometimes be work around.

I had a case like yours last year where a woman had a debt that was similar to yours. I told her she had two choices. One, get into a payment arrangement for at least 3 months and call me back, or she would have to wait until the credit report showed the debt has been not paid in 48 months. She chose to wait out the 4 years. Once she hit that 48 month mark, I told her to contact an Attorney and provide them with a credit report. Once the Attorney reviewed the debt, they needed to issue an Attorney Opinion Letter that stated the debt is no longer collectable based on the Statute of Limitation of the State. This AOL would be then submitted to my Underwriter for review along with the credit report.

The way I work is, I never leave anything to chance. I always run my questionable scenarios by my Underwriter. In this case I was able to get a quick response. Like in your case, this woman has good credit with the exception of that one debt. All I needed to provide the Underwriter was a LOE (letter of explanation), AOL, and compensating factors what would help the Underwriter feel better about allowing the borrower to have a open collection on the report and still approve the loan. Compensating factors are i.e. time on the job, reserves, low balance on open revolving accounts, DTI that is not outside the box etc. I hope this helps demonstrates that there are solutions to every problem. You just need to have the foresight or luck to find yourself an experience capable Loan Officer.

Best of Luck!

http://www.trulia.com/blog/george_raymondo/2011/03/can_someo…
Web Reference: http://www.AFN-Loans.com
0 votes Thank Flag Link Fri Mar 8, 2013
Hello,
You should consult with a lender and I have one that I personnaly use locally in Katy.
very professional and I recommend highly.

Richard Smith Mortgage/ lender
Branch Manager/Mortgage Banker NMLS #220593
"The Richard Smith Team" Southwest Funding 835 |click for map:
22503 Katy Freeway Suite 27, 77450 Office 281-994-4240 | Fax 281-840-6881
Complimentary Reports and Credit Repair http://www.texashomebuyingtips.com
Click here to: Register for Free Online Workshops
My Customer Service Philosophy CLICK HERE:) My profiles:

Good Luck and If you need any help please call/contact me your Katy Realtor.

Kadibhai (Kadi)
Better Homes & Gardens Gary Greene, Realtor Katy/Houston
Phone: 832-228-7978
Fax: 281-646 1841
Email: kadi.kadibhai@garygreene.com
Web: http://www.har.com/kadi
"The highest compliment I am ever given is when
I am referred to your family & friends!"
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0 votes Thank Flag Link Fri Mar 8, 2013
We work with great lenders.
We can set you up with one of our preferred lenders and get the ball rolling for you. http://www.crrealtyco.com
cr@crrealtyco.com
0 votes Thank Flag Link Fri Mar 8, 2013
Good morning,
I work with some Great lenders. If you would ike to meet to discuss your needs? Please call or email to set up an appointment. Have a Great Day!
"Selling Real Estate Since 2001"
Best Regards,
Richard Luebeck
Elite Texas Properties
12320 Barker Cypress Road
Suite 600-224
Cypress TX 77429
Cell 832-646-2886
realtor_richard@yahoo.com
http://www.har.com/richardluebeck
http://www.texasrealestate.com/richardluebeck
http://www.elitetexasproperties.com
0 votes Thank Flag Link Fri Mar 8, 2013
Ashgal85,

Your credit score that you stated would put you in line for FHA financing with 3.5% down payment. There are still some things that we would need to look at on the credit report to insure that you qualify for a mortgage. Feel free to contact me and we can work on a pre-qualification for you.
0 votes Thank Flag Link Thu Mar 7, 2013
It's a good probability. If not, at least the lender can get you on track to get a loan ASAP. Call me and I will connect you with the lenders I work with. They'd be happy to help you out with procuring a loan.

Bryan
0 votes Thank Flag Link Thu Mar 7, 2013
Hi there!
I have a really great local lender that I work with--he's great at educating buyers in the loan process. Even if you don't qualify now, he is great at giving you the steps you need to take to get there later. My partner, Randall Martin, and I would love to help you find what you are looking for. Let us know if we can help. Talk to you soon...V
0 votes Thank Flag Link Thu Mar 7, 2013
Your dept to income ratio is a little on the higher side. If you are at 45% of gross income, that leaves you 55% for purchase of a home. With that ratio, you should be able to purchase because banks wants 35% typically for your mortgage. What you qualify for is a whole different story. I would speak with a local mortgage broker, who can give you a more specific outlook. Good luck with your search.
0 votes Thank Flag Link Thu Mar 7, 2013
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