Attempted to post last night, but it seems to have been lost in the cloud. . .
I’m 34 with a 14yo son living with my parents. . . it’s time to get out!
We moved back in a few years ago as I buckled down to finally finish school. (Which I did May 2015)
I have no gaps in employment, but my income more than doubled over this past summer and I have only been in my new career since July 2015. (Not sure if this will matter? My income will only increase from here)
I was wanting to purchase a home this summer so that I can make my son’s transition from one school to another as smooth as possible. The district he is in now leaves a lot to be desired, whereas the areas I am looking to buy have much better school systems.
I pulled my mortgage FICO’s last night, which are:
On the reports I looked at last night, I still have one medical collection that has not come off yet- I paid it less than a month ago and they said it would come off but takes around 30 days to do so. It is, however, now listed as Paid in full.
Other negatives are some late payments on my auto loan (no more than 30 days and the account has been paid in full and closed), and several student loan accounts that I defaulted on back in 2008. Those went through a rehabilitation program and have since been consolidated into new loans which are current with no late payments. Those defaulted items were supposed to have been taken off the reports once rehabilitation was complete, but that seems to have never happened. Good news is that they are set to fall off in May 2016.
As for DTI, I am grossing roughly $ 3800/mo, whereas the only installment loan I have is my student loan payment of $ 300. (this should be going down soon as I recently applied for an Income based repayment plan so that I could utilize the Public Service loan forgiveness program) I do have $ 2800 in credit spread over 3 accounts and I am currently utilizing $ 328 of the available $ 2800.
My savings will be taking a hit soon, as I owe several thousand in taxes this year. (more on that in a sec!) but I have been able to “save” $ 1800-2000/mo. these last 6 months. I say “save”, because I have been paying down debts with this, so my bank account isn’t bursting at the seams by any means! After I pay taxes, I estimate that I will have roughly $ 10-12k in my account by June.
One other notable item is my vehicle, which is essentially the only “asset” I have at the moment. It’s a 2015 truck that was won in a fishing tournament last summer- hence the extra taxes having to be paid this year. I chose to keep the truck (it’s a really nice truck- by far the nicest vehicle I have owned. . .) but now I’m second guessing my decision to do so. KBB values the vehicle at $ 31k, so if I were to sell it for that price, it opens up several options for me. . . I would need another vehicle, so I figure I could put $ 10,000-15,000 down on a vehicle and finance $ 10k or so. This would increase my DTI, but if I financed for 72mo, my note would be roughly $ 200/mo. But I also understand getting a new loan only months before trying to get a mortgage is frowned upon. By doing so, however, it would also boost my savings by $ 15-20,000, giving me roughly $ 25, 0000 – $ 30,000 for downpayment, closing costs and emergency fund.
What would you do about the vehicle situation?
And should I reach out to a mortgage lender now or wait a couple more months? How much of an impact will that one collection still showing on my report have on my mortgage scores?
Any and all input is appreciated!