topic Re: Want to purchase a home and need a point in the right direction in Mortgage Loans

Want to purchase a home and need a point in the right direction

hillbillytim — Mon, 05 Nov 2012 06:38:46 GMT

Here is my current situation. I have been at my current job for 13 months (no stable work for around 3 years before that). I make $60K/Year, and currently have no savings. I will be done paying off a few personal debts in two months and will be able to fully concentrate my finances towards doing what is necessary towards my goal of home ownership.

My credit has the following:

Bank of America secured credit card. Closed, written off $408 (Feb 2009).

Cavalry Portfolio Service (collection agent for BofA). $613... open.

RGS Financial (collection agency for cable bill). $69... open.

Home Depot/Citibank. Closed, written off $844 (Feb 2009).

US Dept of Education $23,356. Collection account. This just finally finished the rehab process and has not been updated on my credit report (new amount just under $20K).

GE Capital/Mervins. Transferred/Closed ($237). This was from back in 1995, but was re-reported in 2005 to experian.

Capital One. Open since 12/2011, Good standing/Never Late, $350 limit, no current balance.

MyFico score is 653.

So, my basic question is what is a good road map for home ownership for me? If more information is needed, just let me know. Thank you in advance.

Re: Want to purchase a home and need a point in the right direction

JM-AM — Mon, 03 Dec 2012 02:09:32 GMT

hillbillytim wrote:
Here is my current situation. I have been at my current job for 13 months (no stable work for around 3 years before that). (Need 2 years of steady employment) I make $60K/Year, and currently have no savings. I will be done paying off a few personal debts in two months and will be able to fully concentrate my finances towards doing what is necessary towards my goal of home ownership.
My credit has the following:
Bank of America secured credit card. Closed, written off $408 (Feb 2009).
Cavalry Portfolio Service (collection agent for BofA). $613... open. (If was secured card why over balance) Try and PFD
RGS Financial (collection agency for cable bill). $69... open. (Non payment of $69.00?) Try and PFD
Home Depot/Citibank. Closed, written off $844 (Feb 2009). Try and PFD
US Dept of Education $23,356. Collection account. This just finally finished the rehab process and has not been updated on my credit report (new amount just under $20K). Stay up to date on payments and on time.
GE Capital/Mervins. Transferred/Closed ($237). This was from back in 1995, but was re-reported in 2005 to experian. When did it become delinquent?
Capital One. Open since 12/2011, Good standing/Never Late, $350 limit, no current balance. Keep making payments on time.
MyFico score is 653.

So, my basic question is what is a good road map for home ownership for me? If more information is needed, just let me know. Thank you in advance

You have some work to do, but it can be done.

1: Stay employed with same employer ( or same field of work) for at least 2 years (24 months)
2: Make sure you stay current and on time for all open lines of credit.
3. No missed payments or late payments in the last 12 months.
4: Work on trying to have all collections and closed accounts removed from credit report.

Since you have a year basically to qualify because of employment history you can accomplish several of these things.
Stay focused and you will acheive your goal.

Re: Want to purchase a home and need a point in the right direction

DallasLoanGuy — Tue, 04 Dec 2012 04:18:54 GMT

hillbillytim wrote:
Here is my current situation. I have been at my current job for 13 months (no stable work for around 3 years before that).why? what is the nature of your job? were you in an unstable job situation for a reason? like stay at home dad? were you upgrading a degree? I make $60K/Year, and currently have no savings. I will be done paying off a few personal debts in two months and will be able to fully concentrate my finances towards doing what is necessary towards my goal of home ownership.
My credit has the following:
Bank of America secured credit card. Closed, written off $408 (Feb 2009).
Cavalry Portfolio Service (collection agent for BofA). $613... open.
RGS Financial (collection agency for cable bill). $69... open.
Home Depot/Citibank. Closed, written off $844 (Feb 2009).
US Dept of Education $23,356. Collection account. This just finally finished the rehab process and has not been updated on my credit report (new amount just under $20K).
GE Capital/Mervins. Transferred/Closed ($237). This was from back in 1995, but was re-reported in 2005 to experian.
Capital One. Open since 12/2011, Good standing/Never Late, $350 limit, no current balance.
MyFico score is 653.

So, my basic question is what is a good road map for home ownership for me? If more information is needed, just let me know. Thank you in advance.

do you have GOOD credit to balance out the bad?

Re: Want to purchase a home and need a point in the right direction

YHWHUDAH — Thu, 06 Dec 2012 20:52:13 GMT

You need to increase your savings to at least 3 to 6 months of mortgage payments.

Stay on your current job for at least 2 years because you will have to provide 2 years of tax returns.

Try to get those collections deleted with a pay for delete.

Get all three credit scores and determine your middle score.

Continue to make payments and never be late again; most lenders require at least 12 months of no lates or missed payments.

Open up two more tradelines; most lenders require at least three reporting accounts.

However, the bad news is that most lenders will require you to pay off all your collections before closing, so if you do not have that amount then, I don't see homeownership.anytime soon.