Wednesday, March 13, 2013

Getting a Mortgage with Maxed Out Credit Cards

"My credit cards are maxed out.  Can I get a mortgage?" 

If you make enough money to pay your bills, and your credit score is high enough, then you can get a mortgage.  Here's how a lender looks at it:
  • Add up all the minimum monthly payments that show on your credit report.  Only the minimum payments that show on the credit report count, so you need to have your credit pulled by a lender to know what's on it. 
  • Add the minimum payments from the credit report to the total monthly housing payment of the house you want to buy or refinance (principal, interest, taxes, homeowner's insurance, mortgage insurance, HOA fees).
  • Divide the total above by your gross monthly income (that's your income before taxes and other deductions).
  • If the number you get is less than .45, then you probably make enough to get a conventional (non-government) loan.
  • If the number you get is less than .50, then you probably make enough to get a government loan (FHA or VA).

You also need to have a credit score of at least 640 to get a mortgage from most lenders. 

Want to know if you can get a mortgage?  Give us a call and we'll let you know.

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

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