Buying a home but have a little debt?

My husband and I are planning to buy a home in 3-6 months, we currently have about $32,000 in debt (credit card and cars).By the time we buy a home one of the cars will be paid off and everything from our tax return will go toward our credit card debt.We have always paid our minimum due on time every month (no late payments ever)My husbands credit score was 720 but went down after we got the second car to 690 and my credit score is 717.And we'd like to know how that will effect us in getting a home loan. We are military and my husbands income is about 3200 a month and my income is about 900 a month.We'd like to get a 100% loan for a home in the 90-120,000 dollar range,but don't know if our current debt will effect us getting a loan in that amount. I do have 13,000 dollars that I could put down for a down payment if I had to, but I'd really like to save that money for the future,emergencies,ect.What are our chances of getting a loan in that amount with our current debt?Buying a home but have a little debt?
From my experience, you should be able to get a loan just fine. I would consider building up a little money to put something down. You'll probably get a better interest rate if you can.Buying a home but have a little debt?
if you try and get the loan after the cars are paid off then i don't see why that would be a problem....loan companies are just dying for someone to give money too, they get to collect interest, i think you will be ok
You want you credit score to be high. The better your credit score the lower your interest will be. I believe your score has to be 650 or better.
Credit is considered good in the 700 range...A real estate agent should be able to work w/ you in purchasing a home in your price range.....
You are not in too bad shape debt wise. There are a lot of lenders seeking customers out there because of the tremendous slump in the housing market. Actually it is a buyers market right now. Your credit scores are not too bad and if you have been maintaining your payments efficiently, it will factor in your favor. You should try to pay down the debt some more with the savings you have. Most lenders nowwadays do 100% financing...because they are starving for business. Good luck.
Your credit scores are still decent. Naturally when you take out a new line of credit (as for the car) your score will drop. As you keep making payments, the scores go up.



Talk to some lenders now who can look at your current situation and advise you on the steps you need to take.
Loans are given based on debt ratio. Take all of your monthly income and then your monthly debt (only cars, credit cards; not utilities,food, gas). Divide the debt by the income. It is is over 25%, you will not get a home loan. Now, if the car will be paid off by then, then you have a chance. Use an online mortgage calculator to find a house payment. All of the debt for cars, credit cards and house cannot be over 30%. As far as not putting money down on the home, look at a VA loan since you are military. You should be able to get a better rate and put no money down.
Your credit scores are just fine. VA loans are not credit score driven but credit is a consideration. Do not let anyone talk you out of VA financing. It will be perfect for you and the VA rates are comparable to conventional loans. Another benefit for VA buyers is that the lender's loan fee is limited to 1%. That is why many less than ethical loan officers don't like VA loans, they can't make as much without raising the interest rate on you.



Remember, even though you are not required to make a down payment with a VA loan, like other loans, you will have closing costs including property tax pro rates and at least 1 year's worth of fire insurance in advance, You will need some of your $13,000 for that unless you can find a motivated seller who will agree to pay some or all of your closing costs. Negotiating that issue should be done by your Realtor when you make your offer. That is why it is important to have your own Realtor acting as your advocate in the process. The seller's Realtor works or the seller. Since both Realtors are paid by the seller it costs you nothing to be represented. Take advantage of that.



When you get ready to buy you will need your husband's Certificate of Eligibility which is available from your local VA office. Your loan officer will need that form as a part of your loan package so you may as well go ahead and get it now.



Other documentation necessary will include last 2 years W2 forms, most recent full month's worth of paystubs at the time of appication, and most recent 2 months bank statements at time of application (all pages even if they are blank). Having these things with you when you make loan application will expedite the process.



It is best for you to start shopping for a lender now so that you have the time to interview carefully and find one with whom you may build a lifelong mortgage needs relationship based upon trust. Shop for your loan officer with the same care with which you would look for a physician or your child's care provider. It is that important. You can get leads to those in your area who are most experienced and have the best reputations by talking to closing agents like escrow officers, they know who has smooth closings with happy borrowers. Escrow officers work for title companies, get referrals from several and interview them all before making a decision.



Be very, very wary of any of those trolling for business on this site. Ethical loan officers wouldn't violate the Community Guidelines by doing so.



If you have any other questions about the VA loan process, let me know. The more knowledge you have the better questions you will have for your loan officer interviews.
Well...you already said that by the time you are ready to buy, you will have paid off most everything. Pay those off as much as you can before trying to get pre-approved for a mortgage.