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Mortgage help!!

Visitor

Mortgage help!!

I AM NEW TO THIS BOARD. I WOULD APPRECIATE ANY HELP THAT I COULD GET TO GET MY SCORE UP. I WOULD LIKE TO BUY A HOUSE IN THE NEXT SIX MOUTHS. MY SCORES ARE EQ 640, TU AND EX ARE 590. SHOULD I TRY TO GO AFTER HOUSE, OR PAY OFF MY STUDENT LOANS? I HAVE 26,000 IN STUDENT LOANS, 10,000 CAR LOAN, 1,000 CC. IF ANY BODY CAN HELP GIVE ADVICE THAT WOULD BE GREAT!
Message 1 of 10
9 REPLIES
Moderator Emeritus

Re: Mortgage help!!

Message 2 of 10
Regular Contributor

Re: Mortgage help!!

First you need to find out if you are prime or subprime. That is going to tell you what to do. An exp is on the student loans.. If they are deferred and you go subprime it will not matter but going prime hit will hit your DR. It maybe worth it for you to to a bank and have them lot at your credit and then work on it from there.
Message 3 of 10
New Contributor

Re: Mortgage help!!

If I hear this correct then they will use ur middle score and  590 isn't good at all.  Pay off as much as you can and wait till you you least 620 middle score. 
 
 
Message 4 of 10
Regular Contributor

Re: Mortgage help!!

Yes and NO.... What if the at 590 you get an uplift to go prime or if your score goes up to 620 and you have no assets?
 
I also don't know how long it will take you to get your scores up.
 
Maybe you can pay down your dept down below 30 percent.
 


Applebee wrote:
If I hear this correct then they will use ur middle score and  590 isn't good at all.  Pay off as much as you can and wait till you you least 620 middle score. 
 
 



 
Message 5 of 10
Regular Contributor

Re: Mortgage help!!

you want a target middle score of 620 fico
depends on where you go, but the place i just went to used the exact same scores as on myfico, and they throw out the highest and lowest score
BK 7 Filed: 08/07/15
BK 7 Discharged: 11/04/15
Discharge Scores: Equifax (572) - TransUnion (586) - Experian (511)
Goal: 700+
Credit Cards: NFCU nRewards ($500) - CapOne Platinum ($300) - CapOne QuicksilverOne Rewards ($300) - Victoria's Secret ($250) - Firestone ($1200)
Auto Loan: NFCU ($34.6K @ 7.7%)
Message 6 of 10
Regular Contributor

Re: Mortgage help!!

The Mid score is correct and lenders use FICO not FAKO scores. 620 is a good goal but 700 is the ideal spot for prime. Prime does start at 620 of home loans.

Bruiser wrote:
you want a target middle score of 620 fico
depends on where you go, but the place i just went to used the exact same scores as on myfico, and they throw out the highest and lowest score



Message 7 of 10
Regular Contributor
Message 8 of 10
Frequent Contributor

Re: Mortgage help!!

Pay off your bills or pay way down first!   Every payment listed on your credit reports is taken into consideration when applying for a mortgage.  You'd be surprised at how much a small payment will lower the amount the bank is willing to finance.  I know - I just started the home buying process. 
 
I took advice from many different forums and got a few credit cards in an effort to raise my scores.  Sure, my scores have raised over the past 3 months but all it did was hurt me when it came to getting a mortgage loan.  A few $10 payments add up and those cost me lots of $$$$ when it came to the amount I could get financed for. 
 
Also, if you can qualify for an FHA loan, don't even worry about credit scores - FHA doesn't consider them.  You only need to have no negatives and as few monthly payments as possible.
 
I could have gotten a much better bang for my buck had I not took a lot of useless advice back when I first started considering a mortgage and the interest rates were much lower.
 
Now, I have my monthly installment debt lowered.  I just consolidated a couple of loans resulting in a much lower payment and my home buying power has now increased substantially.  I have all CC's at a zero balance and I'm just waiting on things to report to the CRA's then I'm ready to go forward with my loan so I can buy the house I really want - not ones I currently qualify for but wouldn't be happy with. 
 
My advice is that not all advice is good.
Message 9 of 10
Regular Contributor

Re: Mortgage help!!

Are there situations that you would want to go subprime vs. prime?
Message 10 of 10