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Member
dsugolf
Posts: 13
Registered: ‎02-15-2012
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Any Chance I Could Get Approved?

[ Edited ]

I am 25 years old. I have been working at my current job for 4 years. My current salary is $30,000 a year. I have little credit history. The only history I show is my first credit card I got in December 2011 with Capital One with a $500 limit. My credit score on Transunion is 631 and 638 Experian and Equifax won't show me a score. I have zero debt except for my credit card payment. I'm looking to purchase a home for around $100,000 and less with a 30 year mortgage. Any chance I could do this or should I not even try?

Established Contributor
aussiesareforever
Posts: 740
Registered: ‎10-04-2010
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Re: Any Chance I Could Get Approved?


dsugolf wrote:

I am 25 years old. I have been working at my current job for 4 years. My current salary is $30,000 a year. I have little credit history. The only history I show is my first credit card I got in December 2011 with Capital One with a $500 limit. My credit score on Transunion is 631 and 638 Experian and Equifax won't show me a score. I have zero debt except for my credit card payment. I'm looking to purchase a home for around $100,000 and less with a 30 year mortgage. Any chance I could do this or should I not even try?



Where did you get those scores from? Those may not be true FICO scores and your lender will likely be pulling a true FICO. I ask because it is near impossible to get an Experian FICO since they stopped selling their score (unless you bank with a credit union in PA or you got it from a lender). Your true FICO scores may be much higher (or lower) than what you currently have. If those are truely FICO scores, you have a shot at an FHA loan

 

Ultimately I think you might have to wait a little longer to establish a better credit record. Use that time to save some money so that you can have a better down payment (or more cash in reserves). Your credit score will also go up as your account ages. Be sure that your CC reports a balance every month but make sure that balance is less than 8% of your total credit limit

 

I'm no mortgage expert and I'll have others chime in but the first step will be to figure out what your true FICO scores are.

BK in 2008, after making very stupid financial decisions.

Barclay's Apple Financing Card ($6400) --- Capital One Quicksilver ($10,000)---GEMB CareCredit ($5700) --- AUFCU ($10000)--- Walmart ($5000)

FICO Scores: TU 735 EQ 709 EX 740 (Feb 2013, all pulled by lender)

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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: Any Chance I Could Get Approved?

I echo the previous sentiments about the Experian FICO.

 

Also, just on the personal side, are you 100% sure that you want to buy a house on your own?

The biggest thing I've noticed in the last 3-4 years is the increase of people trying to buy houses on their own, only to try and get out of them once a loss of a job happens or a new relationship with potential of marriage. Granted, a loss of a job could happen even when in a relationship, but paying for your own house/insurance/utilities/etc. might get a little big tougher when it's just you.

 

I think you should wait longer, not only for the better credit history, but because I saw no mention of a down payment. You might be better off renting a year or two and saving up some money for a DP in the meantime.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Member
dsugolf
Posts: 13
Registered: ‎02-15-2012
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Re: Any Chance I Could Get Approved?

I have around 11000 in my savings. And I got the scores from Transunion.
Established Contributor
aussiesareforever
Posts: 740
Registered: ‎10-04-2010
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Re: Any Chance I Could Get Approved?


dsugolf wrote:
I have around 11000 in my savings. And I got the scores from Transunion.


Sounds like you should have enough money for a downpayment with an FHA loan- for a $100,000 house, you should only need about 3500. However, it is always better to put more money down and of course you may have pay closing costs.

 

I think if you waited about six more months, you should be in a very good position to get a loan. Read these boards and follow the basic principles. Pay your bills on time. DONT, DONT, DONT apply for any credit lines at leat six months to a year before you get a mortgage. Have less an 8% utilization on your accounts. You should be golden.

 

P.S The scores on Transunion are not FICO scores. Sign up for the free trial of Score Watch on this site and you'll get a free EQ FICO score. You can cancel within 10 days and not have to pay anything. You can also obtain the FICO TU from this site.

BK in 2008, after making very stupid financial decisions.

Barclay's Apple Financing Card ($6400) --- Capital One Quicksilver ($10,000)---GEMB CareCredit ($5700) --- AUFCU ($10000)--- Walmart ($5000)

FICO Scores: TU 735 EQ 709 EX 740 (Feb 2013, all pulled by lender)

Member
dsugolf
Posts: 13
Registered: ‎02-15-2012
0

Re: Any Chance I Could Get Approved?

[ Edited ]

When I try to get my Equifax Fico, it says it can't give it to me. It says my credit history isn't long enough. 

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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012
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Re: Any Chance I Could Get Approved?

Wait.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

AMEX BCE (0/10K) --- BOA 1-2-3 (0/15.9K) --- Discover More (0/6K) --- Chase Freedom Visa (0/1.4K) -- Hyatt Visa Sign. (0/5.8K) -- Barclay's NFL Card (0/7.5K) -- Chase Sapphire Preferred (0/5K)

Frequent Contributor
Student_Loans_Kill
Posts: 297
Registered: ‎02-12-2012
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Re: Any Chance I Could Get Approved?

I pulled my experian score from them today with my free annual credit report. So are you telling me the score pulled directly from their webside is incorrect?


Starting Score: 656
Current Score: 678 TU 08, 665 EQ MyFico, 698 EX PSECU
Goal Score: 7OO needed for Mortgage application


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Established Contributor
aussiesareforever
Posts: 740
Registered: ‎10-04-2010
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Re: Any Chance I Could Get Approved?


Student_Loans_Kill wrote:

I pulled my experian score from them today with my free annual credit report. So are you telling me the score pulled directly from their webside is incorrect?



It is not an incorrect score, just a different kind of score. It is a FAKO score which is very different from a FICO. There are many scoring models out there used by many different companies. Credit Reporting Agencies like EQ, TU and EX all have their unique scoring models. All of which are not FICO scores. Even credit card companies like AMEX will sometimes use their own in house scoring models.

 

The problem is that most Lenders use FICO scores to determine your credit worthiness. This website is about the only place you can get a FICO EQ and TU score. EX FICO scores are hard to come by these days. The other problem is that FAKO scores don't match FICO scores. I just got a 713 TU FICO score on here today . I checked a different website that gives free "credit scores" (creditkarma) for comparison and my score on there is 677. Big difference.

BK in 2008, after making very stupid financial decisions.

Barclay's Apple Financing Card ($6400) --- Capital One Quicksilver ($10,000)---GEMB CareCredit ($5700) --- AUFCU ($10000)--- Walmart ($5000)

FICO Scores: TU 735 EQ 709 EX 740 (Feb 2013, all pulled by lender)

Established Contributor
aussiesareforever
Posts: 740
Registered: ‎10-04-2010
0

Re: Any Chance I Could Get Approved?


dsugolf wrote:

When I try to get my Equifax Fico, it says it can't give it to me. It says my credit history isn't long enough. 



It means that the lenders will not be able to pull a score for you if you go apply for a loan. I would wait six months and see where your scores are at that time.

BK in 2008, after making very stupid financial decisions.

Barclay's Apple Financing Card ($6400) --- Capital One Quicksilver ($10,000)---GEMB CareCredit ($5700) --- AUFCU ($10000)--- Walmart ($5000)

FICO Scores: TU 735 EQ 709 EX 740 (Feb 2013, all pulled by lender)


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