mortgage planning ahead

[Anonymous]

fico 571, two auto loans never late; payments are 804 / month.  2004 lost job, took about 2 years to recover.  now 24 months on job, combined income $140,000; about 21K in IRA, but unsure about mortgage possibilities.  we both have good jobs now, but both are commuting one way about 70 miles per day (in opposite directions) and would like to relocate in june 2008.  currently leasing home.  other than autos, total debt is ~$2300.  will we be able to get mortgage with such low fico?

[sl]

I would try to bump your FICO up to at least 620 before applying for a mortgage. Try sending some good will letters out.

[Trev]

Message Edited by Trev on 09-03-2007 08:26 AM

[Anonymous]

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sl wrote:
I would try to bump your FICO up to at least 620 before applying for a mortgage. Try sending some good will letters out.

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Agreed. You are going to have a terrible time trying to find good lending w/ those scores. All you will qualify is for a loan that would probaby put you in a backward spiral.

Think of it this way- there will always be a house. Work on your credit and Ficos, save up some money for  a down payment, pay all your utils to nothing, and in a year- year and a half you will not be in a desperate situation, and can shop around knowing you have the power to pick and choose. In the present situation you will be so desperate that you will go with anybody who is willing to loan to you- and they will NOT have your best interest at heart.

PS- I was at 525 in Dec 2005. You can do it.

[Anonymous]

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netpanther wrote:

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sl wrote:
I would try to bump your FICO up to at least 620 before applying for a mortgage. Try sending some good will letters out.

---

Agreed. You are going to have a terrible time trying to find good lending w/ those scores. All you will qualify is for a loan that would probaby put you in a backward spiral.

Think of it this way- there will always be a house. Work on your credit and Ficos, save up some money for  a down payment, pay all your utils to nothing, and in a year- year and a half you will not be in a desperate situation, and can shop around knowing you have the power to pick and choose. In the present situation you will be so desperate that you will go with anybody who is willing to loan to you- and they will NOT have your best interest at heart.

PS- I was at 525 in Dec 2005. You can do it.

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heheehe- I just realized I made a pun "best interest" at heart? get it...hehehehehe

[Anonymous]

good one!  glad you can maintain a good sense of humor with me.  in the grand scheme of things, i still have great health and a good family - which are more important than good credit (but barely). 

[Anonymous]

And you can do it! Just read, read and do everything the moderators suggest on this board. Make a promise to NEVER NEVER EVER be late again. Budget, save, budget, save.

When you do get your score high enough- YOU will be in the driver's seat- and will have control of your shopping w/ rates- and will feel so much at peace because you will not be bending to something that you know is not really what is good for you now.

It's kind of like not having good credit, buying a 2000 car at 22% interest that in two years will be worth nothing, but your still paying on it for five years.

Just imagine that stretched into a 30 year period!! Yikes!  there goes your health...hehehehehe

[sl]

Don't give up. We all have horror stories and success stories on this board. I went from 591 to 681 and I loved my cc's.