LENDER keeps getting my hopes up!

drmbas · ‎02-23-2014

I've been working with a lender since Oct 2013 and now its Feb 2014. Im trying to get a the 100% first time buyers loan, Usd. My mother and I are combining our income. Im 40 yr female with one child. We think its a good idea because we need a little more space and would like to leave it to my daughter one day. My scores 636, 639, 652. Her's 634, 652, 698. I have paid all my bad credit. My mother had none. I got a small credit card to show I have recent credit. We have followed every instruction. The lender e-mails or calls saying, hooray! Your almost there! This on going! Now she says I have a 639 and I need one more point!! She says my mom's is perfect. She says they pick the middle score. I've been checking my fico also. All the hard inquiries are from the lender. I don't know what else to do to bump up my score. I don't know what more I can do. I called a place to have accounts charged off, they want $500. I don't want to do that, I don't trust the company. In the mean time, my lender keeps pulling my report and saying your almost there. Im so excited for you! Im so confused and I worry all the time because this is important to us. Any advice is welcome. BTW! The lender set me up with a realtor friend of theirs who keeps e-mailing me houses. You can see how they have gotten my hopes up. I dont know where else to turn.

StartingOver10 · ‎02-23-2014

@drmbas wrote:

I've been working with a lender since Oct 2013 and now its Feb 2014. Im trying to get a the 100% first time buyers loan, Usd. My mother and I are combining our income. Im 40 yr female with one child. We think its a good idea because we need a little more space and would like to leave it to my daughter one day. My scores 636, 639, 652. Her's 634, 652, 698. I have paid all my bad credit. My mother had none. I got a small credit card to show I have recent credit. We have followed every instruction. The lender e-mails or calls saying, hooray! Your almost there! This on going! Now she says I have a 639 and I need one more point!! She says my mom's is perfect. She says they pick the middle score. I've been checking my fico also. All the hard inquiries are from the lender. I don't know what else to do to bump up my score. I don't know what more I can do. I called a place to have accounts charged off, they want $500. I don't want to do that, I don't trust the company. In the mean time, my lender keeps pulling my report and saying your almost there. Im so excited for you! Im so confused and I worry all the time because this is important to us. Any advice is welcome. BTW! The lender set me up with a realtor friend of theirs who keeps e-mailing me houses. You can see how they have gotten my hopes up. I dont know where else to turn.

What do you mean by the above statement highlighted in red?

Do you mean that you currently have accounts that are in charge off status that you want removed?

drmbas · ‎02-23-2014

Im sorry, I didn't intend to highlight that. I did call a place about charge offs but it cost to much, plus the guy said that the bad credit history I have was little compared to the cases he usually takes on, but if I did use them it would take 45 days just to remove one. $500 up front . Any way, my question is about the lender Im dealing with. I need to know what step to take to get that one point. I have followed all her instructions. Been at this since Oct 2013. I cant tell if they are just telling what I want to hear or do I really have a shot at the loan. I read the USDA web site, so what I gather its in the lenders hands.

StartingOver10 · ‎02-23-2014

I highlighted it so you knew what part of your question I was asking about for clarification.

If you are trying to get more "charge offs" (which is how I understood your post), that is not what you want to do to increase your score. Getting rid of charge off's is what you want to do. Most people either do a "pay for delete" or a "good will letter" to get rid of the charge off's. You do that - you don't want to hire someone to do that for you as it will backfire.

Your lender apparently needs a 640 mid score in order to process your PQ. Not unusual, many lenders require a 640 mid score. If more than one person is on the loan, then the lender will use the lowest mid score.

To increase your score further you might want to visit the rebuilding section of this site and post exactly what is on your report (with personal ID info left off) so they can help you increase your score.

One of the easy ways to increase your score is to reduce your utilization on your credit card. If you have a balance on your cards pay off to zero all of them except for one and it's balance should be 9% of the credit line or less to optimize your score.

drmbas · ‎02-23-2014

Thank you so much for responding so fast. You have been a big help because I have no one to talk with about this stuff. My mom and daughter rely on me to make the right decisions< I've took over after my dad died. All we have is each other. I try to read and educate myself as much as I can. Thank you.

StartingOver10 · ‎02-23-2014

I am glad you found the site. Welcome to MyFICO

One of the first things to do is go to www.annualcreditreport.com and download your free credit reports. Don't sign up for anything while you are on that site, just get the body of your reports, without scores.

Post the derogatory info in the rebuilder section. You don't have very far at all to increase your score.

Do you only have one positive tradeline? Or are some of the closed accounts positive too? The rebuilder section helps with getting your score up. This is the mortgage section and there is plenty to read here. You might start off with the sticky's at the top of the forum to read and understand about getting a mortgage.

Sock · ‎03-19-2014

I'd try a pay for delete (PFD) before I wasted 500 bucks for someone else to do what I could do on my own.

Definitely start checking out the other sections of this forum; use the search function at the top right of page and start looking up all of your creditors. Many will do pay for delete, or have other programs available.

If you paid to be on THIS forum to teach you how to do it yourself, why on earth would you pay someone else to do it for you?

Keep in mind, if the collections accounts are over 3 years, they aren't hurting you "that" much- and paying them off may get them reported again this month, which means your score for a short while will go DOWN. Sometimes just one more month of paying credit cards on time and in full can give you 3-5 points.