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3rd times a charm or stop and rebuild?

Contributor

3rd times a charm or stop and rebuild?

I have been denied twice now for a mortgage. Credit union and wells fargo. They both have a problem with my foreclosure from 2008. I noticed my score did drop about 15 points from 1 mortgage try to the other. Is that normal? I have no lates and only 1 credit card which I charge maybe 40 dollars on it then pay in full.
im just concerned once I apply again my score will drop again giving me a higher interest rate. Or should I bite the bullet wait 9 months crunch more money in savings and rebuild? I already have 7k saved but if I wait I don't know that my family member can pay my down payment next year. Granted I am only going for a 125k house max. I do have 1 referral for a mortgage guy. I know 3 people that have used him.
Message 1 of 5
4 REPLIES
Super Contributor

Re: 3rd times a charm or stop and rebuild?

try again.....   2008 f/c shouldn't be an issue.

 

do you have a copy of your credit?  the new lender can look at that and maybe see why the other lender said no

 

 

Retired Lender
Message 2 of 5
Contributor

Re: 3rd times a charm or stop and rebuild?

I met with a banker today at wells fargo see how I can improve my credit score and what is dragging it down.   It looks like a student loan I cosigned on has been charged off and is really dragging down my credit along with the foreclosure also during that time.  I did get approved for a credit card through the bank and they said having the extra credit line will help my credit.   I plan on waiting til spring which should give me plenty of time for my score to bump up and my foreclosure will fall off around that time also since it will have been 7 years. 

Message 3 of 5
Frequent Contributor

Re: 3rd times a charm or stop and rebuild?

What are your fico scores?

Message 4 of 5
Contributor

Re: 3rd times a charm or stop and rebuild?

Wells fargo requires a 660.  I believe I was around 620-630 range for my middle score.  I don't have the scores in front of me at the moment.  I am fine with waiting though.  It only gives me more time so I can save up some more money for a downpayment.  

Message 5 of 5