First timer vent...will we EVER get a mortgage?!?!

[brownee]

I just have to get all of this off of my chest. We've been in the process of really getting our credit together for the last 9 months maybe. We were doing it before then, but it's been "serious" for the past 6-9 months. We've been paying things and listening to all of the advice here and it was going so well. I brought my scores up from the low 500's to where they are now (see signature line) and I feel so great about that.  We've had some major setbacks including a 30 day late for our last truck payment in March.  We eventually got them to remove it, but we didn't fully recover the points from that drop. The loan officer had told us to get below 50% for my husbands 2 credit cards (my 2 are fully paid off), so we did and got almost nothing for it. His midscore is sitting at 596 and it just feels like we have spent so much time and effort and it is not being recognized. Now the loan guy is telling us to completely pay it all off and he'll do a rescore. Jeez..really?!? He's been a gem to work with (the loan guy) and he is always available, so I'm not really complaining about him. I am just so so tired of this whole process. It feels like it doesn't matter how hard we work, it still is always so close but never quite enough. I just feel defeated and sad today. We found an awesome house this weekend and its a short sale. It was built in 2006 and was custom built for $350K. They are asking 232K for it now, but there are multiple offers on it. I don't know that I have the mental energy to deal with that kind of situation...couldn't it take months to know anything from the bank? Also, couldn't the other offers be over the asking price (which, if they were, would pretty much price us out of the deal). It just feels like there is SO much going on and to be doing it alone is even worse! My husband is deployed right now and it feels like a mountain is on my shoulders doing all of this. I'm really just having a pity party I guess...but I really needed to get this off of my chest with others who probably could relate to how I feel. Hopefully, after we pay this stuff off and get the rescore, we'll be all set..if not, I will just fall apart...I know it!

[Anonymous]

I'm sorry. I don't have good advice for you, but I do feel your pain. We've been on the real estate roller coaster since March, and it's not fun. We found two great houses that we could afford in the beginning but were having trouble securing financing...now we're all set with our loan but can't find a house! Our tiny two bedroom is growing increasingly smaller and we're just dying to close. One thing's for sure...the day we get those keys we are popping open a big bottle of champagne! Some people seem to have very smooth purchases...but some of us aren't so lucky. I wish you the best...hopefully we will both be happy homeowners very soon! Just keep doing what you're doing and what's meant to be will be.

[HanginInThere]

Don't worry, i feel the same way!

It is always something.  Hell, I have only a student loan that is in  deferment until 2011, my car and my girlfriends car on my credit (that's the ONLY debts), and since I can't use close to the extra 1k income I make per month to claim, I am at a 44% dti ratio.  All 3 loans are of enough significance there is no way for me to pay any of the 3 off, and then my gf's credit is too bad for her to refinance her car.  The worst thing?  My current rent is $300 ABOVE what my total mortgage payment after everything would be.  I've made the same payment for 2 years, and have so much money I throw away to do other stuff (cruises, travelling, a lot in food etc etc), and the LO don't think I could get approved.

I was kind of thinking of getting a new LO but right before refinancing my car into my dads name only.  That would put me at about 38% dti, so then at least I would be over that hurdle.  It does seem like I am stuck for about 2 or 3 years and can not only buy a house, but can't get approved for enough to settle, in which I wouldn't do anyway.  

[Anonymous]

It took me YEARS to increase my credit score because I screwed up my credit so badly ... I look at improving my credit score like losing weight. You don't gain a whole bunch of weight overnight so you aren't going to lose it overnight. The same is true for your credit score. You didn't sink it overnight so it's not going to increase dramatically overnight ... It's going to take time. But you are on the right track and you can do it if you keep on that track.

ETA: We just closed in May with a 30-year loan that has a 5 percent fixed rate. So improving your score can be done.  

Message Edited by dkjay on 07-07-2009 02:16 PM

[WannaHouse]

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@brownee wrote:
I just have to get all of this off of my chest. We've been in the process of really getting our credit together for the last 9 months maybe. We were doing it before then, but it's been "serious" for the past 6-9 months. We've been paying things and listening to all of the advice here and it was going so well. I brought my scores up from the low 500's to where they are now (see signature line) and I feel so great about that.  We've had some major setbacks including a 30 day late for our last truck payment in March.  We eventually got them to remove it, but we didn't fully recover the points from that drop. The loan officer had told us to get below 50% for my husbands 2 credit cards (my 2 are fully paid off), so we did and got almost nothing for it. His midscore is sitting at 596 and it just feels like we have spent so much time and effort and it is not being recognized. Now the loan guy is telling us to completely pay it all off and he'll do a rescore. Jeez..really?!? He's been a gem to work with (the loan guy) and he is always available, so I'm not really complaining about him. I am just so so tired of this whole process. It feels like it doesn't matter how hard we work, it still is always so close but never quite enough. I just feel defeated and sad today. We found an awesome house this weekend and its a short sale. It was built in 2006 and was custom built for $350K. They are asking 232K for it now, but there are multiple offers on it. I don't know that I have the mental energy to deal with that kind of situation...couldn't it take months to know anything from the bank? Also, couldn't the other offers be over the asking price (which, if they were, would pretty much price us out of the deal). It just feels like there is SO much going on and to be doing it alone is even worse! My husband is deployed right now and it feels like a mountain is on my shoulders doing all of this. I'm really just having a pity party I guess...but I really needed to get this off of my chest with others who probably could relate to how I feel. Hopefully, after we pay this stuff off and get the rescore, we'll be all set..if not, I will just fall apart...I know it!

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Are the two CC's the only thing that will help bump his score? Can you add him as an authorized user on yours to help as well? If so, then maybe paying off one of his cards will do it.

I am simply guessing the with 3 paid off and one showing about 10% usage, that will bump him up to the 620 hopefully!!

I forgot to add:

The short sale will add 110 times more frustration to your case. It will probably go into a bidding war, and will more than likely end up about 5K over asking price. Again, this is just my guess.

Message Edited by WannaHouse on 07-07-2009 09:18 PM

[brownee]

Thanks, you guys. It's good to know that others out there DO know where I am coming from.  I realize that it will take time to bring the scores up and that much..er, ALL of the blame is ours for not taking care of our credit when we were in our twenties. We were young and dumb and want to grow to young and smart..lol.

He only has the two credit cards and I have my two. I don't know if adding him to one of mine will help because we each opened our two 1 year ago this month. I wouldn't really be helping him, would I? If paying these two off (which are at a together making his utilization 51%) doesn't help, then I guess we'll just have to play the waiting game.

I had a feeling that the Short Sale thing would make our lives harder. It's a very very beautiful home and well worth the wait, BUT I'm not sure that as a first house we really NEED all of that house. I mean, it's one of those things where you see something and want it even though you KNOW you'd be perfectly happy in a few other houses that won't be such a hassle to get into.  The Realtor for that house will not tell us anything about the other offers whether they are over the asking price or not. My Realtor has tried to get her to tell us anything and she won't.  Not exactly the type of situation I want to be a part of.  I talked to DH last night and he said let's just take it off of the list. Sure it's awesome and it our desired neighborhood, but perhaps it's not the house for us.  What we MAY do is to put in an offer on that one, but keep looking.  If the other house that we really like (straight sale, not short sale or foreclosure) gets an offer or something then we'll cancel the short sale offer and just go with the other house. You can do that, right? Pull out of a short sale offer if the bank hasn't said yes...correct?

[WannaHouse]

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@brownee wrote:

 

 

Thanks, you guys. It's good to know that others out there DO know where I am coming from.  I realize that it will take time to bring the scores up and that much..er, ALL of the blame is ours for not taking care of our credit when we were in our twenties. We were young and dumb and want to grow to young and smart..lol.

He only has the two credit cards and I have my two. I don't know if adding him to one of mine will help because we each opened our two 1 year ago this month. I wouldn't really be helping him, would I? If paying these two off (which are at a together making his utilization 51%) doesn't help, then I guess we'll just have to play the waiting game.

I had a feeling that the Short Sale thing would make our lives harder. It's a very very beautiful home and well worth the wait, BUT I'm not sure that as a first house we really NEED all of that house. I mean, it's one of those things where you see something and want it even though you KNOW you'd be perfectly happy in a few other houses that won't be such a hassle to get into.  The Realtor for that house will not tell us anything about the other offers whether they are over the asking price or not. My Realtor has tried to get her to tell us anything and she won't.  Not exactly the type of situation I want to be a part of.  I talked to DH last night and he said let's just take it off of the list. Sure it's awesome and it our desired neighborhood, but perhaps it's not the house for us.  What we MAY do is to put in an offer on that one, but keep looking.  If the other house that we really like (straight sale, not short sale or foreclosure) gets an offer or something then we'll cancel the short sale offer and just go with the other house. You can do that, right? Pull out of a short sale offer if the bank hasn't said yes...correct?

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He only has the two credit cards and I have my two. I don't know if adding him to one of mine will help because we each opened our two 1 year ago this month. I wouldn't really be helping him, would I? Probably not if they were opened at the same time.

If paying these two off (which are at a together making his utilization 51%) doesn't help, then I guess we'll just have to play the waiting game. I am guessing that by paying these off, it will increase his score. I would guess maybe around 20 point gain?


What we MAY do is to put in an offer on that one, but keep looking.  If the other house that we really like (straight sale, not short sale or foreclosure) gets an offer or something then we'll cancel the short sale offer and just go with the other house. You can do that, right? Pull out of a short sale offer if the bank hasn't said yes...correct?

 Yes, I believe you can as long as there is nothing accepted.

[WannaHouse]

One thing I missed is that your cards are a year old this month. Next month, you may see a small increase on scores once they pass the 1 year mark as well.

[brownee]

We're hoping he gets a good jump.  When I paid off mine, I got about 30 points or so. I'm feeling better about it today. I'm going to try and be patient and just let the process flow...

[Anonymous]

That attitude will get you far. If you're doing everything you can, just try to stay patient and positive. I've been letting this whole process get to me, but earlier this week I decided to just let the cards fall. It had been 7 weeks since anything had come on the market in our price range, and wouldn't you know, the very DAY I decided to just be patient, another house popped up. Today, yet another! Seems like more than just a coincidence!