cancel
Showing results for 
Search instead for 
Did you mean: 

NEED ADVICE , WANNA BUY A HOUSE SOON!!!!

Regular Contributor

NEED ADVICE , WANNA BUY A HOUSE SOON!!!!

I SPOKE W/ A LENDER AND HE ADVISED I GET A SECURED CREDIT CARD. I CURRENTLY HAVE A SECURED LOAN W/ A LOCAL CREDIT UNION.

BELOW IS A COPY OF MY CREDIT REPORT THAT WAS PULLED BY THE LENDER. THE ONLY DIFFERENCE IS MY CAR LOAN WAS PAID OFF ON JUNE 28...PLS ADVISE

EQ-513

TU-555

EX-559

I have 6 DEROGATORY ACCOUNTS

1. PROFESSIONAL DEBT:  DATE REPORTED 05/15  : DATE OPENED 11/10 :  BALANCE $2854 

ACCOUNT INFORMATION DISPUTED BY CONSUMER; ORIGINAL CREDITOR: MARQUIS APARTMENTS 

2.MIDLAND FUNDING: DATE REPORTED 05/15 : DATE OPENED 04/11 :BALANCE  $1471 

ACCOUNT INFORMATION DISPUTED BY CONSUMER; FACTORING COMPANY; ORIGINAL CREDITOR: CHASE BANK USA N.A.

3.ENHANCED RECOVERY:  DATE REPORTED 04/15 : DATE OPENED 08/14 : BALANCE $853 

ACCOUNT INFORMATION DISPUTED BY CONSUMER; ORIGINAL CREDITOR: SPRINT

4.PROFESSIONAL DEBT: DATE REPORTED 05/15 DATE OPENED:11/10 :BALANCE  $500

ACCOUNT INFORMATION DISPUTED BY CONSUMER; ORIGINAL CREDITOR: SURE DEPOSITMARQUIS

5.FIRST PREMIER BANK: DATE REPORTED 03/15: DATE OPENED 12/13 :BALANCE $496 

6.CHASE CARD: DATE REPORTED 09/13: DATE OPENED 11/08 

ACCOUNT TRANSFERRED OR SOLD; CHARGED OFF ACCOUNT

6 REPLIES
Valued Contributor

Re: NEED ADVICE , WANNA BUY A HOUSE SOON!!!!

The newly acquired secured CC will help you rebuild your credit if you pay on time, etc.

You did not state how much cash or income you have, assuming it is not enough to pay cash for a home, and you need to borrow, you must get your FICO scores up to at least 640, and then at that time, reconsider buying a home through a home loan. You are in no financial condition to get approved for a loan right now, any loan, let alone a mortgage in the 6 figuures. You work on cleaning up your credit report to raise FICO scores is the first order of business, clean up derogatories, etc.

Credit Cards: AmEx Platinum (NPSL), Citi Prestige ($32K), Simmons ($5.5K), IberiaBank ($14K)
Personal Lines of Credit: U.S. Bank ($5K), Wells Fargo ($11.2K), Citibank ($11.8K), PenFed CU ($25K), LA Financial CU ($20K)
myFICO 3B Report (as of 4/30/16): Experian: Score 8: 786; Mortgage Score 2: 809 Equifax: Score 8: 801; Mortgage Score 5: 809 Transunion: Score 8: 796; Mortgage Score 4: 796
Jumbo Mortgage: 3.75%
Regular Contributor

Re: NEED ADVICE , WANNA BUY A HOUSE SOON!!!!

Thank you,

 

 

I really appreciate it! I disputed the incorrect items on my account, my chase account comes off in NOV....

I'm waiting for my response w/the disputes..I WILL UPDATE

Moderator

Re: NEED ADVICE , WANNA BUY A HOUSE SOON!!!!

You are not that far away from being able to qualify for a mortgage. Many lenders use 620 as the minimum min-score for an FHA mortgage. If you get approved for an FHA insured mortgage, you are automtically approved for the mortgage insurance.

 

You can even get a conventional mortgage at that score, but the reality is that conventional mortgage interest rates are score sensitive. (lower your score, the higher the interest rate). The more difficult approval for conventional mortgages is getting approved for PMI (private mortgage insurance). It is not only score sensitive but LTV (loan to value) sensitive. In other words, the more money you put down, the better PMI rate you will get. Naturally at 20% or more there is no PMI so that would be ideal.

 

Go to the Rebuilding Your Credit forum here to see what you can do to get rid of the derogatories on your report. Look for examples of Good will letters, Pay for Delete and settlements.

 

You need to do something to get rid of those derogs because FHA will only allow $2000 in collections and you have more than that. Over $2000 then the underwriter has to allow you a payment amount and it will hurt your ability to get a mortgage. Read this thread it is very helpful: http://ficoforums.myfico.com/t5/Mortgage-Loans/FHA-changing-collection-account-judgments-amp-dispute...

 

Also, getting three credit cards is ideal. Settle/pfd/gw your derogs first then go for another two cards (assuming you already have applied for that secured card).

You don't need large lines. You only need to keep your utilization in check (low) and pay on time, every time. You can not have any late payments within 12 months - including your rent, before you make application for a mortgage.

 

Regular Contributor

Re: NEED ADVICE , WANNA BUY A HOUSE SOON!!!!

Thank you so much this helps alot, I really dont know much about rebuilding credit or applying for a mortgage.

I will keep you updated

 

VERY HELPFUL

Regular Contributor

Re: NEED ADVICE , WANNA BUY A HOUSE SOON!!!!

UPDATE!!!!!!

PFD W/ PRO DEBT WAS A SUCESS W/ THE ACCOUNT FOR $500.00

1 DOWN 4 TO GO....

QUESTION?

My charge off w/ Chase should fall on in Feb 2016, it was sold to an collection agency will that fall off also???

Highlighted
Moderator

Re: NEED ADVICE , WANNA BUY A HOUSE SOON!!!!


maddiedior wrote:

UPDATE!!!!!!

PFD W/ PRO DEBT WAS A SUCESS W/ THE ACCOUNT FOR $500.00

1 DOWN 4 TO GO....

QUESTION?

My charge off w/ Chase should fall on in Feb 2016, it was sold to an collection agency will that fall off also???


I am really not an expert in rebuilding (other than dealing with the IRS Cat Tongue) but collections are marked from the DOFD which in virtually all cases will be before the Charge Off date.  Basically it's when you first went 1+ day late on your account, or the month before the first 30+ days was listed on your report.  That really shouldn't be hard to get off your report around the same time if not earlier.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge