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Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010
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Re: Could I be close to a position to buy!?

It sure does!!!!!   :smileytongue:  :smileylol:

Good Luck
May all your dreams and wishes become a reality!
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awdsmama
Posts: 755
Registered: ‎01-20-2012
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Re: Could I be close to a position to buy!?

ANOTHER QUESTION....

 

When I get my tax refund (approx 1,500-2,000) would it be best to:

 

1) Pay down 2 of the SL's to a small balance to help utilization.....

 

2) Pay 1 SL off completely and a good chunk of a 2nd

 

3) Forget the SLs which are all in deferrment until 6/2014 and save it for house fund?

Fico: 701 (5/22/14) 682 (5/9/2014)
Discover IT $5,200 / CU Visa $1,000 / JC Penny$3,000
App Free since 2/2013
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igids1
Posts: 191
Registered: ‎07-05-2012
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Re: Could I be close to a position to buy!?

I have to really disagree with most of the advice you've been given here.

 

I have numerous hsbc/cap 1 charge offs. I now have 2 cap 1 cards.

 

Your old charge offs and lates mean practically nothing if you are going to apply for a USDA or FHA mortgage.

 

Unless  you are living rent free, I think you would be crazy not to purchase a home. 

 

a 150,000 mortgage at todays rates, would run you a little under 1,000 per month with taxes and insurance INCLUDED. Don't forget,  you then get to deduct the taxes and interest from your taxes at the end of the year.

 

I think not having any open cc will probably hurt you. 

 

I advise  you to speak to a mortgage broker, or a loan officer to get their opinions directly, but I think you are certainly very close!

Regular Contributor
igids1
Posts: 191
Registered: ‎07-05-2012
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Re: Could I be close to a position to buy!?

Keep in mind that with an FHA, and possibly USDA, the rate you get, is the same whether you have 640 or 840, so this is really a case where being borderline is good enough. USDA requires no down payment with one of their loans, AND you can roll the closing costs in if you need to. 

 

I think if you are able to find a job that pays better money you should go for it, it will be questioned, but I am sure that anyplace would understand taking a new job that pays more. 

 

 

Established Contributor
awdsmama
Posts: 755
Registered: ‎01-20-2012
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Re: Could I be close to a position to buy!?


igids1 wrote:

 

 

I advise  you to speak to a mortgage broker, or a loan officer to get their opinions directly, but I think you are certainly very close!



Thanks for the input.  I think once my report clears up of the last late under 2yrs and the last 2 CAs on them, then I'll approach my CU and a lender my friend uses (she and her husband own a local real estate firm) and see what they think as well.

Fico: 701 (5/22/14) 682 (5/9/2014)
Discover IT $5,200 / CU Visa $1,000 / JC Penny$3,000
App Free since 2/2013
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Could I be close to a position to buy!?

I noticed you mentioned in another forum that you have COs from HSBC. I highly doubt that those will hurt you if you apply for a Capital One card. They are paid COs right?

Capital One and its buyout of HSBC is still in the transitioning phase. I have read a few here that were approved through Cap1 with HSBC COs. I really think if you aren't going to buy for the next 3 months, you should apply for a credit card...it will help your score in the short term once you show you paid in full 2-3 times on time. You have not one CC, and that is hurting your score.

Paying off your student loans quicker will also hurt you as once your oldest account stops reporting active payments, your score will suffer.

I do think you want to wait until your mid fico is 660 because they typically do another hard pull right before closing and you don't want to not qualify at the end because you lost too many points from the inquiry.

The motto today is "buy high" because of how low the interest rates are. My mortgage payment will be $2460 per month the first year. $2160 per month years 2-5 because of income tax refund on interest paid, and $1814 per month years 6-30 because of tax refund and mortgage ins removal. So it if you buy a little higher in your affordability range and revamp your budget to support it for 5 years, your payment will be similar to a lower priced home after the first 5 years. If you have expenses you absolutely can't revamp, then this is probably not for you but if you can swing the higher payment for first 5 years, you will be rewarded for it with a lower monthly payment on a bigger house over the remainder of the loan.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
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awdsmama
Posts: 755
Registered: ‎01-20-2012
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Re: Could I be close to a position to buy!?


MovingForward_2012 wrote:
I noticed you mentioned in another forum that you have COs from HSBC. I highly doubt that those will hurt you if you apply for a Capital One card. They are paid COs right?

Capital One and its buyout of HSBC is still in the transitioning phase. I have read a few here that were approved through Cap1 with HSBC COs. I really think if you aren't going to buy for the next 3 months, you should apply for a credit card...it will help your score in the short term once you show you paid in full 2-3 times on time. You have not one CC, and that is hurting your score.

Paying off your student loans quicker will also hurt you as once your oldest account stops reporting active payments, your score will suffer.


The COs are not paid.  HSBC is reporting on all CRs with zero balance, but the CA that was collection (Portfolio) ceased collection attempts over a year ago when I disputed and has my file marked as "closed" with them, even though unpaid.   

 

SLs:  That's why I was considering only paying them down to a very small balance - so they'd stay around a bit longer but also help with utilization if it would?

Fico: 701 (5/22/14) 682 (5/9/2014)
Discover IT $5,200 / CU Visa $1,000 / JC Penny$3,000
App Free since 2/2013
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
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Re: Could I be close to a position to buy!?

Keeping your student loans longer won't help with utilization, only your revolving credit card debt affects that. Your SLs help your AAOA, and as the balance lowers, it helps your debt to income ratio.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Member
groovy27
Posts: 23
Registered: ‎01-21-2013
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Re: Could I be close to a position to buy!?

You may want to try Discover as well- my credit scores are in the 600's- not any late payments as of late but did have a collection/charge off showing.  I tried Discover and got approved- the intro APR was only 3.99%. They have different types of Discover cards so maybe you will qualify for one.

 

EQ 676, TU 614, EX 629 ( I think these may have been a little lower when I applied for the card though.)


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