hello all I got exciting news today that i am haveing a two year old charge off that is going to be removed through gw letters and am thinking i may get the boost i need to finally get the courage to apply for an fha loan.....
Here is what i am looking at right now...
I have two cc with a total cl of $800. right now at 85% utilization (christmas shopping) i will be paying this off on my statement...
I had two Charge off capital one and macys- macys is going to delete in the next 45 days.
my last late payment was febuarty of 2012 since then i have paid everything on time
i ahve several late payments on student loans that i can not get removed... they are all current and the last late payment was a 120 day late in january of 2012.
i have two car loans with zero late payments. two cc with zero late payments.. oldest account is 7 years.
i have an income of 50k i can put 5% down. with reserves.
my scores are 581EQ/ 609 TU here/ 621 Ex from lender pull for car loan in july
My questions are
1- am i even close to being able to qualify
2-What could i qualify for
3- how long should i wait to apply
I would apply right now and see where you are at.
I doubt that charge off being removed will help any with that 120 day late you have from last Feb. But I would bet after you pay off those credit cards your score might be good enough, but you wont be able to close till March.
With a 50k income, you could probably get a home with a price about 200k. You really need a good LO to take a look at your situation. You are closer then you think.
I would wait until you bring your UTIL down since your scores are still low. Once you pay down your UTIL your scores should increase.
In the mean time do not be late on anymore payments. Most lenders want a minimum of 12 months of clean credit history which would mean you have a few more months before you would qualify on your last late payment.
Your questions answered in my opinion;
1- You are close but not there yet.
2- In my opinion nothing until your mid score is built up and your last late payment is at least 12 months old which would make your lates eligible in March 2013.
3- In my opinion I would wait until my lates are 12 months old and I built my middle credit score up to 640 or higher.
If you are looking to close in March, NOW is the time to start the process. Its less than 3 months away.
With their scores and late payment pre approval is even unlikely. Nothing to start if you can not be pre approved.
Makes no sense to add an inquiry in my opinion at this point in time which will also ding your credit scores. Not by much but in their situation every point is needed at this time.
A few more months to build up scores and late payment to age would be a much wiser choice.
Just a clarification, getting a clear to close from UW and closing on home loan can be done in 7-10 days. Every situation is different which can cause delays so YMMV. But 97% of approved loans through my office are closed with-in 30 days unless it is new construction and delays are because home is not completed yet. Also would depend on the type of loan for example USDA loans may have to wait on funding, short sales, etc etc...
I dunno, I would think if you were this close it would be good to see where you stand.
One inq isnt the end of the world.