Need a preapproval now. what am I doing wrong?

[nomionekanobe]

Good afternoon everyone, 

I dont think I have posted here before, but I look almost every day. Shame on me! 

I need help!! 

Im in the process of trying to buy a home.  I have been living in my fathers basement for about two years now after leaving an abusive marriage.  I have been working for an elementary school for the past two years, and have no intention on leaving. My income is nearly 50k a year. I am to receive $305 in child support monthly, but haven't in over a year(enforcement case pending). I have a vehicle that is paid, and only have one bill which is my cell phone(250 a month). I have $2000 cash saved so far for a down payment.  I have tried to get a loan, but have been turned down either because the purchase price is too low, or because I do have a bankruptcy CH13 on file from 2008. The bankruptcy was something I did out of fear from my ex husband. Ive been working with a bank for a few months now. I paid off a two collection accounts. One will be deleted this month. I am an AU on a discover card CL 750 Balance is 730; AU on Cap 1, 300CL 0bal; Kohls card CL300, 75bal; Student loan for 7k in forbearance because im still in school; scores from lender is EXP 555, TU 737, EQ 601, before I started to pay off anything, or apply for cards; In order to boost my middle score, I was told to pay off collection accounts, one was from University of Phoenix(ex decided to take my grant money) I settled the account and due to fed regulations they cannot delete it. I was also told to pay a bank debt my ex owed. I paid that in full and they agreed to delete which should happen any day. I was then told to boost my score even more, since I want to get my middle score to at least 640 to qualify for a program for a 7500 grant, to open up a credit card. I was told to try with Capital One, First Premier, Credit One, and Fingerhut. I tried with Capital one, I was pre approved, then denied. Tried to recon with Ex office, and still denied(due to too many inq). Tried 1st Premier(denied), Credit one(denied), Fingerhut(approved 500CL). I was also approved for a Discover It Secured card, and was told I should get it. This is where what ive learned on these boards is screaming at me to STOP. Now my ?'s are, is there something I am doing wrong? Should I get the Discover Secured card? Shouldnt my scores be good enough already?? Im only looking for a 40k-50k loan. What should I do next?? Also, if I left anything out, i apologize in advance, and THANK YOU FOR ANY ADVICE!!!!

[Anonymous]

I would be a bit curious why there is such a huge range in your scores 555 is your low and 737 is your high that is a HUGE range. Your mid is only 601 so that means you have to find a lender that will work with a mid score that low, usually most want at least a 620 for FHA, of course the higher your score the better your interest rate, so maybe your lender is trying to get your mid score up high enough to help you get a better rate. I am not an expert but that is just one thing I saw.

[Juss11]

If your trans score is that high 737, why dont you try for a barclays? They pull trans! I froze my EX  EQ on my wifes account and chase pulled Trans. Her Trans scores are the same as yours and she was approved for the CSP for 19k. That would help your other scores, if you can get another card or two using your good Trans score.

[nomionekanobe]

My scores vary because only Eq, and Exp are showing the CO, that will soon change once they are deleted as promised. Thats really the only reason. Transunion has no neg accounts listed. Thank you for your response

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@Anonymous wrote:

I would be a bit curious why there is such a huge range in your scores 555 is your low and 737 is your high that is a HUGE range. Your mid is only 601 so that means you have to find a lender that will work with a mid score that low, usually most want at least a 620 for FHA, of course the higher your score the better your interest rate, so maybe your lender is trying to get your mid score up high enough to help you get a better rate. I am not an expert but that is just one thing I saw.

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[nomionekanobe]

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@Juss11 wrote:

If your trans score is that high 737, why dont you try for a barclays? They pull trans! I froze my EX  EQ on my wifes account and chase pulled Trans. Her Trans scores are the same as yours and she was approved for the CSP for 19k. That would help your other scores, if you can get another card or two using your good Trans score.

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I was going to go that route, but because of me trying to get a mortgage loan, and being denied because the loan amount is small, I have built up inq which Barclays frowns upon. Dont think they will approve. Thank you though. i will definately try for them once I lose some of those inq and im finally in a home!

[nomionekanobe]

bump

[ShanetheMortgageMan]

Since you already got Fingerhut, then getting the Discover secured card won't hurt your scores much more.  It sounds like you should get a nice score boost once the charge-off has been deleted as well, which will put your score into the qualifying range at most lenders.  I've seen worse situations get approved, and the amount you are looking to qualify for is about the same as your income, so I think you'd have a pretty decent chance at getting approved for FHA financing.