In 2014 I was a frequent contributor to the mortgage forum. I went under contract for a new build in Nov 2014 and closed mid June 2015.
I wanted to build a 250k home. I prequalified with a few caveats, but was good enough to get the new build going. My credit score was in 650 range. I didn't have any bad stuff on my report, but I didn't have any credit cards or other debt. I'd been living in my current home for 38 years, and did not have a mortgage payment last 8 years, so I thought I was doing pretty good. Not so! My problem wasn't bad credit, but no credit!
I was referred to a credit specialist within the mortgage company. She coached me up on what I needed to make my file the best it could be come closing. Following her advice, my scores moved to the 680-90 range and we closed with no sweat or last minute hang ups. It was in these months of tribulations I learned the credit game, and how to work it.
I'd been retired ( fire dept officer) since 2005, and took a parttime job with the federal govt in 2013. That boost income opened many doors for us. By May of 2015 I knew the mortgage business well. (thanks fico). We first applied for joint mortgage ( my wife of 30+ years) her fico was decidely lower than mine, and holding us back which = costing us money in terms of points etc. I called my mortgage officer, who by now I had become casual friends with. "Look here, I want you to run this mortgage, just my file, and see if it'll fly"
"I'll try it but I dunno"
"I think it will, she does bring 42k in income to the table, but she also brings a bunch of stuff we can do without."
I was hanging out here in my office a few days later, when she called. "Hey, they said that'll fly."
That saved us one point on the intrest rate, it also allowed her to retire a month before closing, because doing so in the mortgage process was a no no.
That was almost 3 years ago, and since then our lives have gone on. We are extremely happy here in our new home. It has been more than we ever thought it would be. Living here is such a blessing, it is like being on vacation everyday. She has put her special touch on this home , and I can't tell you how many compliments we receive on it. We even had a lady stop here and ask if we would sell. "Yeah right."
After closing, I turned my attention to the other things in life. I was no longer a prisoner to stuff like utilization, debt to income, and checking interest rates daily, etc. All the stuff a guy does when he's buying a house. I decided to use my credit wisely, and make it work for me. I now have all the major cash back cards that are worth having. They pay me hundreds of dollars a year. My 11 cards have a combined credit of 102,000 dollars, but never more than 1500-2000 reporting at any one time. I bought a new car after closing, and a year after that a new motorcycle, with best terms available ( .9% on my car) Prior, I just went in and bought a car, I didn't even know different guys get different terms.
One of the things I learned while in the process was this- no news is good news. If they ain't callin ya, don't worry about it. I figured out when you first apply your file is ontop, once they get ya prequalified you go to the bottom of the heap while they work on the files they need to close in the next few weeks. This is even more so on a new build, no need to get all worked up when they ain't even got a slab poured on your house, right now they gotta get the heat on in the house down the street that due to close in 4 days. Your file goes to the top when the time comes. Its not a big deal, just business.
I suggest living your life while the build progresses. Now don't go out and buy a new BMW, or quit your job, but if you want to go to the beach for a couple of days, do it. Getting away from it for a couple days is always a good thing.
Few things in life are as satisfying as closing on a home. I remember that day. All the hoops you gotta jump through etc are worth it when they slide those keys over the table to you. Soon was we closed we went straight to our new home, and just walked around, not believing it was ours, because we knew where we came from.
A Happy New Year to all.
