Will we get approved for a mortgage in New Jersey?

Question

My wife and I live in the NJ metro area and would like to start to look for a mortgage to buy our first home. Based on the following income/credit details do you think we would qualify for a mortgage in the 380k to 400k range with a decent fixed rate? Right now we have about 20k available for down payment and still saving.

Combined gross income: 140,000

Me: 75,000 / Her: 65,000

Credit scores:

Me: 670 / Her: 520

Debt: 27,000

Me; Car (12,000 balance) / (2,000 school)

Her: School (13,000 balance)

Credit:

Me: two credit cards: 7,000 total limit / no balance

Her one credit card: 1,000 limit / no balance

Thank you very much for your input.

Answer 1

With her 520 score, you may get a mortgage, but the rate will probably be higher then you want.  The mortgage amount is right around the max for a balance (rule of thumb is 3 times annual income or $420K in your case).  

Since you are still saving, use the time to build up your wife's score and everything should work out.

Answer 2

It all depend on the monthly expenditures but if they are low enough then yes you should