Anyone? Mortgage help! I feel ignored.

[CC40]

Okay gonna try to explain. About a year ago I had a FICO of 578. I am currently at 650 on Scorewatch. I was stuck at 639 forever and couldn't get over the hump of 640. I disputed an old cell phone bill and got it deleted to make it over the hump. I am ready for a mortgage like within the next 30 days. Piece of land picked out - house plans ready to go. I am just worried that 650 won't be good enough to get me a good rate - or maybe be denied because it is a construction project. Only have 3 baddies on my account currently - a paid charge-off from Chase in 2008, a paid collection ($60) from the demons at IC Systems, (here is the kicker) a 90 day late from Sallie Mae back in December 2011. I actually sent them $150.00 to prevent a neg reporting but it wasn't enough to cover a 30 payment so they reported me anyway. I have a GW letter being processed with them, but don't think they are going to. Help! You guys have a wealth of knowledge and advice I need. I want to get approved for this mortgage.

[Anonymous]

Most lenders require a 620-640 middle score for a mortgage so if 650 is your mid score you sound ok there.
And I think they don't want to see any late payments in the last 12 months but I could be wrong. I would take a copy of my credit report to a lender (dont let them pull your report themselves) and pick their brain on the situation. Good luck!

[CC40]

Finally -I get a response!  Thank you very much!!!!!!  The recent late payment (within last 12 months) is what concerns me.  I have worked really hard to improve that FICO score over that last year.  Most of my information came from this site.  Just curious on opinions of my chances.  Credit denial is embarassing.

[Anonymous]

I agree, its very embarassing. They also look at the entire picture dti, income, assets etc... Credit is just one part of the whole process.

[webhopper]

You probably need to wait until Jan 2013 due to the 90 day late with sallie mae. Ask lenders.about this BEFORE you let them pull your report. With your.scores being marginal I would hold off on the build until your scores and / or payment history are in a much better place. You likely wont be approved for the constriction loan with what you've laid out here.

[mrordinary]

I agree with the answers above. If you layout your scores PLUS the late up front, a lender should be able to tell you whether you'd qualify or not. I understand your concern with being denied. I was denied in December and in the last 7 months I've had 4 accounts deleted and paid my utilization down to 1%. My score has increased by 60 points so far. January will be here before you know it! Good luck and welcome to MYFICO!

[jeffg330]

Where there any special circumstances with the Sallie late? I've had some recent success with removals with them. Are you dealing with the consumer advocate dept?

[Anonymous]

We are in escrow and my mid score is 674. We are going FHA with a 3.75% rate. No lates in the last year. I do have a few remaining collections, very small amounts (medical). My LO said they may require me to pay them, but most likely not. Things are moving along. Should be closing on the 18th. If I were you, I would wait until January since you will then have a year with no lates.

[webhopper]

Agree with jeffg330. Try to work with ole sallie on getting the late removed

[courtney091082]

Everyone has given great advice, I totally agree be patient and wait it out the next few months. You will be glad you did! Your score will go up and hey it gives you more time to save plus bet you'll see a boost in credit score too! fun fun, win win!