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How Close Am I

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Gardenhand
Regular Contributor

How Close Am I

Hello, I've posted here once before. My circumstances have changed so I'm posting again with my updated information.

 

Credit 

Two secured credit cards with 5 months history (500 limit and 2500 limit)

One installment loan with 3 months history (29 per month)

Transunion is completely clean. EX and EQ have a few small medical accounts that I am working to get removed. Also EX has one paid and closed cable bill collection account. I should have a Fico score after September 10 with six months credit history.

 

Debt

My only Debt is my credit cards that I pay in full every month and my secured loan of 29 per month. My child support is 84 per week and I have always been current/ahead on that.

 

Income/Work History

My income will be a little over 40,000 this year with overtime. I'm at 65 percent of the pay scale and will top out at 100 percent in January 2019 (52,000 plus overtime). I've been in the same industry since 2008. I've been working full time continuously since September 2011 without any gaps in employment. I've been at my current job since October 2013 but only full time since January 2014. My pay took a slight decrease this year due to the new job but in the long run it will be higher with better bennifits, retirement, etc... 

 

Income

2011- 30,000

2012- 44,000

2013- 44,000

2014- 42,000 projected

 

Down Payment

For a Downpayment I have 13,000 saved but only access to 10,000 because 3,000 is locked in secured deposits for my credit products.

 

Can can anyone tell me how close I am to owning a home? Are there any other steps I can be taking to reach my goal quicker. I am currently living rent free so I can continue saving 1,000 per month but this window of opportunity will be closing in six to eight months. Any insight is appreciated.

 

Message 1 of 9
8 REPLIES 8
Gardenhand
Regular Contributor

Re: How Close Am I

A few more details...

 

First time buyer for a private house around 100,000  dollars in Souther New Jersey, Cape May, Atlantic or Cumberland County. I'm guessing a FHA loan would be my best bet. Three bedrooms would be ideal. Any other information that would help please let me know. In a perfect world I could buy before the 6-8 month window expires but if I need to rent an apartment getting hooked into a lease would push me back as long as the lease was for plus obviously I would not be saving the way I am now.

Message 2 of 9
DallasLoanGuy
Super Contributor

Re: How Close Am I


@Gardenhand wrote:

Hello, I've posted here once before. My circumstances have changed so I'm posting again with my updated information.

 

Credit Cards

Two secured credit cards with 5 months history (500 limit and 2500 limit)  lenders have tradeline requirements. these arent considered 'valid' until 12 months old

One installment loan with 3 months history (29 per month)

Transunion is completely clean. EX and EQ have a few small medical accounts that I am working to get removed. Also EX has one paid and closed cable bill collection account. I should have a Fico score after September 10 with six months credit history.

 

My only Debt is my credit cards that I pay in full every month and my secured loan of 29 per month. My child support is 84 per week and I have always been current/ahead on that.

 

My income will be a little over 40,000 this year with overtime. I'm at 65 percent of the pay scale and will top out at 100 percent in January 2019 (52,000 plus overtime). I've been in the same industry since 2008. I've been working full time continuously since September 2011 without any gaps in employment. I've been at my current job since October 2013 but only full time since January 2014. My pay took a slight decrease this year due to the new job but in the long run it will be higher with better bennifits, retirement, etc... 

 is the new job in the same line of work?  i want to see 2yrs in the same line of work unless you went to school for a degree in the field you work

Income

2011- 30,000

2012- 44,000

2013- 44,000

2014- 42,000 projected

 

For a Downpayment I have 13,000 saved but only access to 10,000 because 3,000 is locked in secured deposits for my credit products.

 

Can can anyone tell me how close I am to owning a home? Are there any other steps I can be taking to reach my goal quicker. I am currently living rent free so I can continue saving 1,000 per month but this window of opportunity will be closing in six to eight months. Any insight is appreciated.

 


 

Retired Lender
Message 3 of 9
Gardenhand
Regular Contributor

Re: How Close Am I

Thank you for the quick reply. Yes I have been a bus driver since 2008. I have been driving a bus full time without gap since September 2011 and driving a bus full time at my current job since January 2014. The only difference in my job is I was driving a charter bus before and now I am driving a transit bus.

 

As for the credit lines I now understand they won't be valid for six more months. So could I assume that in six more months that my credit history could be good with the three accounts that I currently have (2 secured cards and one secured loan)?

Message 4 of 9
DallasLoanGuy
Super Contributor

Re: How Close Am I

will still be considered thin credit.  u/w will want rent verif to build the credit i am sure

 

but once those accounts are reported as 12 months old.... then you should apply with confidence

 

 

Retired Lender
Message 5 of 9
Gardenhand
Regular Contributor

Re: How Close Am I

I understand. It's sort of a catch twenty two. I'm trying to weigh which is more important a larger cash Downpayment or rent verification as I am currently living free of rent. My last apartment was from January 2012 until December 2013. The lease was originally a one year lease starting in January 2012. After the original lease it went to a month to month lease. I always paid on time or early. I got practically all of my security deposit back except We agreed to having the carpets cleaned by a professional at the end of the lease. It was a condition in the lease. Although I did not save my receipts I'm sure the landlord would verify that I paid on time (mostly in cash). 

 

Since December 2013 I have not been paying rent so I won't be able to verify any rent obligations since then. Would it be wise to jump into a rental now to generate a rent payment when the time comes or continue to save towards a Downpayment?

Message 6 of 9
DallasLoanGuy
Super Contributor

Re: How Close Am I

with living rent free we would like to be able to document that you save a considerable amount of money during that time.

 

problem with rent free is when we have people who live rent free and have $5000 for down payment and no more. they should have a lot more living rent free

 

 

 

Retired Lender
Message 7 of 9
Gardenhand
Regular Contributor

Re: How Close Am I

That makes sense. I have a direct deposit for 100 dollars out of my check weekly that goes into my credit union through work. The rest of my check gets direct deposited into my checking account. At the end of every month I transfer 500 dollars from my checking account to my savings account. I have been saving this way this whole year and I plan to continue saving this way for the next six to eight months.

 

So I estimate having about 20,000 total (although three thousand is stuck in deposits) in about  six to eight months. I would also have bank statements showing I was able to save this money during my time of rent free living. 

 

The other option I see is to rent a room from my brother who rents a house from the owner. So I guess that's a sublease? I'm not sure that renting from my brother would seem legit to a U/W. I'd much rather keep saving and bring 20,000 to the table. 

 

One more question. At this stage would it be wise to open another secured credit card and/or another secured loan? I know I can get one of each without a hard pull inqery but of course they would be brand new accounts.

 

thanks again for sharing your knowledge. It really helps to get information straight from someone in the business.

Message 8 of 9
DallasLoanGuy
Super Contributor

Re: How Close Am I


@Gardenhand wrote:

That makes sense. I have a direct deposit for 100 dollars out of my check weekly that goes into my credit union through work. The rest of my check gets direct deposited into my checking account. At the end of every month I transfer 500 dollars from my checking account to my savings account. I have been saving this way this whole year and I plan to continue saving this way for the next six to eight months.

 

So I estimate having about 20,000 total (although three thousand is stuck in deposits) in about  six to eight months. I would also have bank statements showing I was able to save this money during my time of rent free living. 

 

The other option I see is to rent a room from my brother who rents a house from the owner. So I guess that's a sublease? I'm not sure that renting from my brother would seem legit to a U/W. only legit if we can document with cancelled checks. but still iffy if they ask questions  I'd much rather keep saving and bring 20,000 to the table. 

 

One more question. At this stage would it be wise to open another secured credit card and/or another secured loan? I know I can get one of each without a hard pull inqery but of course they would be brand new accounts. that would be a better question in the credit forum. as it might help scores. 

 

thanks again for sharing your knowledge. It really helps to get information straight from someone in the business.


 

Retired Lender
Message 9 of 9
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