02-08-2013 12:59 PM
I went in a talked to a realtor and he got me in touch with 1 mortgage lender. I gave the guy my information and he pulled my credit scores Tu 649 EF 646 Ex 643. He said my scores were fine but I do not have enough open trade lines to get approved at this time. The only tradeline I have open is my car which is paid on time every month. His advise was for me to go out and open at least 3 credit cards not caring what the interest rate was and use them to buy lunch once a month and then pay them off so the interest doesn't matter. Then to try again at the end of the year or early next year and I should be approved then.Wont me going out and opening three credit cards hurt my score? So what should I do just do what this guy says and reapply with him or try to find another lender and do you think there is a lender out there who will approve me. I don't have any Bk or collections and I will be a first time home buyer.
02-08-2013 01:27 PM - edited 02-08-2013 01:36 PM
We need more information. Specifically:
How long have you had the auto loan? What is the monthly payment?
How long have you been in your current job, and what's your salary?
What type of loan are you looking for?
Do you have a down payment?
Depending on the answers, FHA could be an option, as they allow alt credit for borrowers who don't have a sufficient number of tradelines.
02-08-2013 01:28 PM
02-08-2013 01:40 PM - edited 02-08-2013 01:41 PM
I have had the auto loan since June of 2012 I pay $363 a month I had a loan on the truck I traded in I paid 268 a month I had that loan since sept 2011 I was paid off when I got the new loan.
I have been I my current job for a 1 1/2 it will be 2 years in july I make 50,100.00 a/year
I am looking for a Fha or a usda.
I was wondering what he said about the cc's is that a good idea? My lease is not up until feb 2013 so I can wait but I do have a early jump out clause if I want to use it.
Darn my Realtor already sent my info to another lender!!! How much is that going to tank my score with them also running my credit?
02-08-2013 02:01 PM
1. Tell your Realtor not to send your info to any more lenders- Get the lender's info and let them know you do not give them permission to pull your credit or do anything else with your info.
If I'm not mistaken, FHA doesn't have a requirement for a minimum # of tradelines, as long as the borrower has an acceptable credit score and will be occupying the home. The issue is that lenders usually add their own requirements on top of FHA's minimum requirements. The trick will be to find a lender with few overlays. You could open a few cards, but do some research beforehand to get an idea of the requirements for approval. The last thing you need is to apply for a bunch of cards, rack up inquiries and then end up getting declined for the cards because your file is thin. Store cards are often the easiest to be approved for.
I would do as the other poster suggested, and check with a broker without letting them pull your credit. You should be able to get a trimerge copy of your credit report- you can provide the broker with that, and they can tell you if using alt credit is an option for you.
You seem ok income wise, but many lenders want to be able to verify two full years of employment in the same industry. If you were in school and obtained your degree in the same field you're working in now, then I believe you can use that to get past the two year requirement.
02-08-2013 02:54 PM
Okay I have stopped the loan shopping process now and I got the report the first lender pulled e-mailed to me. So I should now take a printed copy and go shop around my self to find a lender who can work with me.
02-08-2013 03:03 PM
Call around with your specific question, and fax/email a copy of your credit report over to them to see if its going to be an issue.
02-08-2013 03:16 PM
I just got off the phone with a lender I e-mailed him the credit report that the other lender pulled earlier today and he thinks he can get it done but they are closing for the day and he won't get back to me until Monday. I told him I was looking at homes between 100k - 120k he said my dti is not an issue and said he can use utilities and past rent checks in substitute for open trade lines. He also suggested going for a USDA guaranteed loan so now I will wait till Monday before my next plan of action.
Going out and opening new credit cards like the other lender wants me to do just seems backwards to me. But in the end if that's what I have to do I will. The waiting a year also wouldn't kill me
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.