Credit score vs credit profile

[daninicole]

My husband and I sold our condo a year ago this month and we are looking to apply for a mortgage in the next 3-4 months. Initially he was going to be on the loan alone but we have decided to add me to it. The reason why I am gonna try to get on is because we have joint car loans totatling around $1400 a month and since we live in georgia I was told it would seem as if he is paying that on his income only and his DTI would be too much. My credit is not the  best but it is improving. I am working with a credit consulting firm and have seen progress here with many  baddies being deleted. My question/concern is if we have qualifying scores and our income is good ( approx $$122k for an approx $250k loan with 3.5% down pymt and DTI is good) will past credit issues prevent us from getting a loan? my husband had great credit until we sold our home and took a loss  which resulted on a few  late cc pymts . His overall credit profile was good up until the last year or so. My credit on the other hand was not so good for most of my adult life, but  again things have been deleted and score is steadily rising. So I guess I'm asking if scores look good, DTI is good, income and employment is good, will previous bad credit Profile be a factor? We both like to be at all 3 scores at 620 or higher before we apply and we plan to go FHA.  I am hoping It won't be a definite no because i need to be added to the loan to get the house we want. We set a goal for a year and it will be year since we sold our home on May  19th.  

[StartingOver10]

The really good thing about FICO scores is that they are calculated at the time the score is pulled based on the information you have on the report at that moment. So if you have cleaned up your reports, your 'bad stuff' that isn't on the report won't bring down your score. 

The theory behind credit scores is that they are a numerical measure of the lenders risk based on your credit profile as it shows on your credit report at the time the report is pulled.

Old items have much less impact than new items. So once you get your report in shape, your score will go up.

The way that "previous bad credit Profile" can influence your scores is if you have outstanding balances those balances will be included in the calculation for your utilization which will drop your score. If you have a collection it will drop your score. If you have late pays 30, 60, 90, 120 it will significantly drop your score. That is why we suggest going over to the rebuilding section so you can clean up the items negatively impacting your score. You don't have to be perfect or anywhere near perfect. If you have had a negative credit event and recovered from it, then most lenders just require a letter of explanation.  If it is a severe derogatory, then there may be a time frame for recovery, but it doesn't sound like you had a severe derogatory from your post.

In the rebuilding forum many people have had tremendous success in getting their scores up over 100 pts in a short period of time through Good Will letters, Pay For Deletes and other methods. Check it out.

To see what is actually on your report, pull your reports from www.annualcreditreport.com  (annual free reports). Don't pull the scores from there because they aren't FICO scores. Pull the scores from here so you can see where you are now.

Don't worry. Most of us have had issues to overcome and it can be done once you are shown what to do.  Welcome to MyFICO Forums!

[CreditHealthy]

Yep....What startingOver10 said!.LOL!