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Need some suggestions, advice, etc

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Anonymous
Not applicable

Need some suggestions, advice, etc

I'm a full-time working single mother and am finally in a position to buy my first home. I was planning on applying for a FHA loan because of the low down payment requirement, which will help tremendously. After speaking to the mortgage department at USAA about a month ago, I pulled my CR and scores to see where I was at and started working on my CR. Here's where I'm at:

1. I have 2 collection accounts which I PIF and have sent GW letters to. One has agreed to delete the account. The other one is considering it but I'm hopeful and haven't seen it on my CR I've been pulling from my CMS through USAA.

2. A CapOne CC that I'm up to date on and have paid it down to less than 3% utilization as of this billing statement (the new statement posted yesterday). I had some recent late payments on it because I (stupidly) didn't realize that their automatic payments stop after 3 months. I also sent GW letters and spoke to a CSR, who very kindly agreed to do the GW adjustment, on Tuesday.

3. A WFNNB/VS CC that is PIF but listed as a recent CO. I contacted them less than 24 hours after I received an email that my account was about to be considered bad debt. I have sent GW letters and called for a GW adjustment but so far to no avail.

 

Most of these changes are very recent. I'm just wondering what my next step should be? I've found a house that is perfect for us and it's breaking my heart that my carelessness is interfering with my ability to give her something so important.

 

TIA!

 

 

Message 1 of 6
5 REPLIES 5
germaine47
Frequent Contributor

Re: Need some suggestions, advice, etc

I know this is difficult but please wait until you get your pre-approval letter in hand before house hunting it so easy to fall in love with that perfect house and become disappointed when you cant buy it.  God may smile down on you and that particular house may still be waiting for you.  All I know  is that if you found one great house there will be another.  I want the realtors to take you seriously with your pre-approval in hand and this will give you leverage with the buryers.  You are making great strides and everything takes times.  I would also call around to find lenders and what are their minimum FicoScore are, I am hoping that will be something obtainable like middle fico score of 620-640.  I am Praying for you.

Fico September 2012; TU 681, EX 674, EQ 652
Fako October 2012: TU 706, EX 641,
Message 2 of 6
Familywantsahouse
Frequent Contributor

Re: Need some suggestions, advice, etc

Did USAA give you any speicifc reccomendations? I'm no expert and still learning, but my understanding is lates within a year or even 2 prior to application can be a deal killer. Especially if your credit is "borderline" (ie the score is the lender's minimum)

 

Call around and give brokers your general scenario and see what they suggest. I understand it's AT LEAST a 620, but the recent charge off could be a real issue. We spoke with someone yesterday who said AT LEAST a 640...and again if it's borderline an inquiry could cause a drop.

 

I completely understand where you are coming from...we were optimistic LAST year at this time we'd be able to buy a house, and we were stupidly (at the advice of our broker who's rapid rescore was not correct) actively looking.

 

turn out we had to wait another year, and it didn't KILL us. Your baby is young, she won't remember the 4 walls that surrounded her at this point in time. Keep working and give yourself a goal to re-evaluate in 6 months.

2/24 (Lender Pull) EQ 613, TU 553, EX 589
April EQ 633, My Fico TU 638, EX ??
Current EQ 643, TU 652, EX 633 (lender pull 5/11)
Goal (we made it!!)- Over 640 middle by 5/15
Message 3 of 6
thankfulheart
Established Contributor

Re: Need some suggestions, advice, etc


@Familywantsahouse wrote:

Did USAA give you any speicifc reccomendations? I'm no expert and still learning, but my understanding is lates within a year or even 2 prior to application can be a deal killer. Especially if your credit is "borderline" (ie the score is the lender's minimum)

 

Call around and give brokers your general scenario and see what they suggest. I understand it's AT LEAST a 620, but the recent charge off could be a real issue. We spoke with someone yesterday who said AT LEAST a 640...and again if it's borderline an inquiry could cause a drop.

 

I completely understand where you are coming from...we were optimistic LAST year at this time we'd be able to buy a house, and we were stupidly (at the advice of our broker who's rapid rescore was not correct) actively looking.

 

turn out we had to wait another year, and it didn't KILL us. Your baby is young, she won't remember the 4 walls that surrounded her at this point in time. Keep working and give yourself a goal to re-evaluate in 6 months.


Yep, this 100%.  I was told any lates or negative accounts in the last 12 months are deal-breakers.  In my area, a 640 mid-score is pretty much a standard "overlay" (meaning companies have added more stringent requirements over the USDA/FHA). I wish I had known a year ago that I really needed a full year to PLAN for a house purchase and get my ducks in a row.  My advice would be to take a deep breath, realize that you will be where you are supposed to be, and deal with the hand you've got. Start chipping away with the GWs and see where it gets you.  Get some rebuilder cards (appears that 3 active accounts seems to be a good number), use them and pay them off.  Time will be your friend.

Starting Score: 10/1/2011 EQ 568 TU 593
Current Score: EQ 664 TU 700 EX 701 (FAKO)

Message 4 of 6
Anonymous
Not applicable

Re: Need some suggestions, advice, etc


@germaine47 wrote:

I know this is difficult but please wait until you get your pre-approval letter in hand before house hunting it so easy to fall in love with that perfect house and become disappointed when you cant buy it.  God may smile down on you and that particular house may still be waiting for you.  All I know  is that if you found one great house there will be another.  I want the realtors to take you seriously with your pre-approval in hand and this will give you leverage with the buryers.  You are making great strides and everything takes times.  I would also call around to find lenders and what are their minimum FicoScore are, I am hoping that will be something obtainable like middle fico score of 620-640.  I am Praying for you.


Thank you. My realtor is a friend of a friend. So, he is aware of what's going on and has been very understanding and supportive. No more house hunting for me - this one kind of fell in my lap and unfortunately, I fell in love....I have talked to both USAA and NFCU about mortgage loans. FHA minimum for USAA is 600 and 620 for conventional. NFCU was unable to tell me what the minimum FICO score was but they seem to be really awesome with members, who are in the process of rebuilding their credit. Thanks again for the support. I'm trying to put it in God's hands (as my mom always says).

Message 5 of 6
Anonymous
Not applicable

Re: Need some suggestions, advice, etc


@thankfulheart wrote:

@Familywantsahouse wrote:

Did USAA give you any speicifc reccomendations? I'm no expert and still learning, but my understanding is lates within a year or even 2 prior to application can be a deal killer. Especially if your credit is "borderline" (ie the score is the lender's minimum)

 

Call around and give brokers your general scenario and see what they suggest. I understand it's AT LEAST a 620, but the recent charge off could be a real issue. We spoke with someone yesterday who said AT LEAST a 640...and again if it's borderline an inquiry could cause a drop.

 

I completely understand where you are coming from...we were optimistic LAST year at this time we'd be able to buy a house, and we were stupidly (at the advice of our broker who's rapid rescore was not correct) actively looking.

 

turn out we had to wait another year, and it didn't KILL us. Your baby is young, she won't remember the 4 walls that surrounded her at this point in time. Keep working and give yourself a goal to re-evaluate in 6 months.


Yep, this 100%.  I was told any lates or negative accounts in the last 12 months are deal-breakers.  In my area, a 640 mid-score is pretty much a standard "overlay" (meaning companies have added more stringent requirements over the USDA/FHA). I wish I had known a year ago that I really needed a full year to PLAN for a house purchase and get my ducks in a row.  My advice would be to take a deep breath, realize that you will be where you are supposed to be, and deal with the hand you've got. Start chipping away with the GWs and see where it gets you.  Get some rebuilder cards (appears that 3 active accounts seems to be a good number), use them and pay them off.  Time will be your friend.

 

 

Thanks for the advice! I'm willing to be patient but am persistent and a bit optimistic that everything will work out in the end! I'll keep sending my GW letters to WFNNB. I'm actually in the office right now to do just that. Hopefully, something will work out in the near future.


 

Message 6 of 6
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