My husband and I want to buy a townhouse. We saved about $85K for a down payment. He has impeccable

Asked by Nancy Kipling, Park Slope, Brooklyn, NY Fri Jul 11, 2008

credit and I just checked my Experian FICO score, it's 778. I'm afraid my score from the other 2 credit bureaus aren't as high, maybe in the 650s or around there. Also, I only have 2 credit cards with about $1K credit limit each, will this hurt our chances of getting a mortgage loan?

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, ,
Tue Jun 19, 2012
Hello Nancy,

I'd love to sit down and chat with you and your husband to complete a thorough Prequalification. I'm a Local Mortgage Banker and I've been helping HomeBuyers for 22+years here in the NY Metro region.

In the Prequalification meeting we'll review the building blocks of a successful mortgage application: IAC or Income, Assets, and Credit. Then we can determine the loan programs we can offer you and the programs that are the best fit depending on your family's goals and financial lifestyle. I'll also guide you through the entire process of buying a home, from finding a great local Realtor, to making an offer, home inspections, contract signing, loan process and closing. My clients get a personalized "First Time Buyer's Seminar."

I'm accessible seven days a week and I make house calls, so give me a call today and we can get you on your way to homeownership!

Trevor Curran
NMLS #40140
Office: 516-829-2900
Mobile: 516-582-9181
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
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Caesar Galin…, , Staten Island, NY
Mon Jul 14, 2008
Give me a call at (718) 698-2179 or ( 646) 302-1470 at Prosperity Real Estate Group, We are on Richmond ave as well, I can help you answer any questions you may have, this is not commitment to come with us. YOu can come and inquire about this even if you are already working with someone. Buying a property is a constitutional right, and we are here to make sure you are not provided with erroneous information.

My Name is Caesar Galindo Office manager, and Law Student at CUNY Law School.
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Thomas McGiv…, Agent, Farmingville, NY
Sat Jul 12, 2008

how have you made out? did you get a preapproval?
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Gail Gladsto…, Agent, 11743, NY
Fri Jul 11, 2008
Call a mortgage broker for this answer; they are the experts. If you need a referral, contact me off line at
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Other/Just L…, , Fleming Fitch Grant, Holly Hill, FL
Fri Jul 11, 2008
The school loans will be a factor in calculating your debt ratio. Are the loans in deferrment? You will need a letter stating they are deferred for at least 3 years from the closing date; otherwise the payment must be included in your debt ratio.

There are two debt ratios used in qualifying:
(1) Housing Ratio - the percentage for your monthly income before taxes that will taken up by mortgage principal, interest, property taxes, homeowner's insurance, and association fees (if applicable). It's best to be below 28%
2.) Debt Ratio - the percentage of your monthly income taken up by your housing expense plus any other debts you pay. It's best to be below 41%.

With substantial reserves (3 months+ of mortgage payments in the bank after closing), retirement assets, or a down payment of 20% or more, it's possible to recieve an automated approval from Fannie or Freddie on a much higher debt ratio.
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Chris Covalle…, , Chicago, IL
Fri Jul 11, 2008
Good points below but also remember that mortgage pricing is based on the lower of the two middle scores. So for example, if your husbands middle score is 720 and yours is 650, your mortgage rate could be approx. 1/2% higher with both of you on the loan. You may want to investigatge structuring this loan with your husband only so you can secure the best pricing. Additionally, with such a wide spread between your scores you may want to see if there is some inaccurate info on the bureaus reporting the lower scores. Please feel free to call with any questions.
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Nancy Kipling, Home Buyer, Park Slope, Brooklyn, NY
Fri Jul 11, 2008
Thanks for the advice, but before I give a sigh of a relief I should also mention that I still have about $17K in graduate school loans, do you think will play a negative role in securing a mortgage loan?
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Other/Just L…, , Fleming Fitch Grant, Holly Hill, FL
Fri Jul 11, 2008
Lending answer:

If your downpayment is 20% or more, I'd expect you to fly through underwriting with a speedy approval.

Call your bank at let them have the first shot. Don't worry.
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Daniel Jeung, , Woodinville, WA
Fri Jul 11, 2008
I'm not a lender, but based on my past experience and the information you've provided, I don't think you'll have a problem qualifying. You didn't mention your husband's credit scores, and the lender will likely pull them as well before qualifying you both for a home loan amount and program.

Contact a reputable lender in your area and have a talk about what payments you feel that you can comfortably handle and see what loan amount you can qualify for.

Best of luck!

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