We are wanting to buy a home in the next 12 months. We have been working our butts off to pay off all out debts and improve our credit, as we both were financially irresponsible in the past.
I am 25 and married with 1 child. I make about $2200/month after taxes, and my wife bring in about $1000/month after taxes. Our expenses are very low currently, we only have about $1900/month in expenses including food, gas, etc.
We both have poor credit, but low debt in comparison. My score is 605 while here is 565. I have 0 credit utilization, and a debt to income ratio of 12%. I am working on paying off my last 2 credit cards that I haven't touched in years, once those are gone I only have my car that I finance and my student loans.
What all do banks/lenders look at when applying for a mortgage? What should we be working on first to help our chances?
We have found about 25+ houses in our area between $80-$100k which is what we would feel comfortable financing to not push our payments to high. We would like a payment between $600 and $800.
Any advice is greatly appreciated.
I am 25 and married with 1 child. I make about $2200/month after taxes, and my wife bring in about $1000/month after taxes. Our expenses are very low currently, we only have about $1900/month in expenses including food, gas, etc.
We both have poor credit, but low debt in comparison. My score is 605 while here is 565. I have 0 credit utilization, and a debt to income ratio of 12%. I am working on paying off my last 2 credit cards that I haven't touched in years, once those are gone I only have my car that I finance and my student loans.
What all do banks/lenders look at when applying for a mortgage? What should we be working on first to help our chances?
We have found about 25+ houses in our area between $80-$100k which is what we would feel comfortable financing to not push our payments to high. We would like a payment between $600 and $800.
Any advice is greatly appreciated.