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Obtaining a Mortgage in 30 days, Some issues, some help and insight needed

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Anonymous
Not applicable

Obtaining a Mortgage in 30 days, Some issues, some help and insight needed

Hi everyone,

 

I'm looking for some advice in cleaning up my credit asap, as my wife and I are supposed to close on a house in 30 days and we want the best chance at obtaining a Mortgage. There are multiple issues with cleaning up credit and obtaining a mortgage so I'm not sure where to post.

 

I went through a rough divorce in 2012 and 2013 where my great credit was ruined from getting stuck with literally dozens of credit cards that my ex-wife had opened. I had no idea how many there were until I was stuck with having to pay them during the divorce. In the midst of the divorce, many went 120+ days late as well as a few that went to collections. At the end of the divorce, I had charged off multiple cards so my ex-wife could not put me in more debt. I had no idea this would harm me. But live and learn!

Since the beginning of this year, with a score in the low 500's, I have bounced back significantly with the help of my wife. My current Fico scores are Experian 619 - Equifax 629 - Trans Union 636.

 

However, when Wells Fargo ran our credit 2 days ago, my scores were 603, 609 and 647. Why the huge difference? and are those Fico scores? We're waiting to find out on Monday, but it's a huge difference as to what MYFICO is showing me now. Now I am in a panic trying to search for a different Mortgage lender with a realization I will have to settle for an FHA instead of a Conventional mortgage.

 

I am in the midst of writing several Good Will letters to Citibank and Bloomingdale's for some mishaps when the credit cards were paid off after the Divorce.

 

For one, Citibank/Best Buy had applied a late charge to the credit card at the same time that the pay off check was sent. Since I had sold the house that I and my ex-wife had lived in, the statements with the late fee never reached me. With me under the impression that everything was paid off and good, 5 months went by with no idea that the fees had gone up to $300.00+. I found this out on MYFICO 2 months ago and I have since paid that off entirely, however, it had gone to collections.

 

A similar issue happened with Bloomingdale's, after I paid this credit card off entirely (with proof the check was cashed), I kept receiving statements over and over for the same amount. After months of phone calls and re-faxing the proof of payment, I finally got through to someone competent enough who admitedly said they had no idea where to apply the payment. Because of that mishap on their end, my Bloomingdale's credit card shows 120+ days late.

 

Unfortunately, these are recent blemishes on my account, but with good explanation, so I'm hoping the Good Will letters will work for those.

 

Also in the last week, I have gotten hit with AMEX newly showing a derogatory remark after I paid $1400.00 to them.


That is another problem I have. The AMEX is the family Business's credit card, but I am listed as the Guarantor, however, I am not the business owner, my father is. AMEX has months and months of late payments and has also been closed for future purchases for 2 years.

 

I called AMEX yesterday explaining that this is not my personal credit card, and it is hurting my chance in obtaining a Mortgage, and they said there is nothing they can do until the $4000 is paid off entirely.

 

I apologise for this being so long, but I have multiple issues here and my head is spinning trying to figure out how to make this right. Especially since our closing is in less than 30 days and we don't want to lose the house.

 

Since these issues are explainable, and it's obvious my credit took a hit from the Divorce in 2013, does obtaining a Mortgage seem possible for us? My wife has great credit, but obviously they are going to go by my middle score at 609.

 

Any help or insight would be GREATLY appreciated.

Message 1 of 14
13 REPLIES 13
ezdriver
Senior Contributor

Re: Obtaining a Mortgage in 30 days, Some issues, some help and insight needed

I'm confused. Sounds like your signed a purchase agreement without having been pre-approved. Is that correct? Wells Fargo pulled your credit but that middle score is unlikely to qualify you for a mortgage. Worst case is that you are declined for a mortgage, you clean up/rebuild your credit then you secure a mortgage preapproval and try again. Based on your post, it seems to me like your strategy is ready fire aim.

Message 2 of 14
Anonymous
Not applicable

Re: Obtaining a Mortgage in 30 days, Some issues, some help and insight needed

Yes, we did get a pre-approval letter... but from what I've been reading it doesn't mean much. I've read people were pre-approved then declined toward the closing.

I'd just like to know if Mortgage lenders go mostly by credit score, or do they go by recent derogatory remarks etc. We're at 609 now so crossing our fingers for FHA while we get all these issues sorted out
Message 3 of 14
Anonymous
Not applicable

Re: Obtaining a Mortgage in 30 days, Some issues, some help and insight needed

I think you need a 640 to get an fha loan. I have found that most of the scores are only close to what the lenders use, but could differ. So the scores from Wells Fargo would be more accurate. I hope they can work something out for you good luck.

Message 4 of 14
ezdriver
Senior Contributor

Re: Obtaining a Mortgage in 30 days, Some issues, some help and insight needed

Were you preapproved by Wells Fargo and was your pre-approval letter issued after the lender pulled/reviewed your credit?

 

Every lender has its own guidlines for minimum scores. Scores are but one of many factors considered. I doubt very much that Wells Fargo is going to approve that mortgage application.

Message 5 of 14
Anonymous
Not applicable

Re: Obtaining a Mortgage in 30 days, Some issues, some help and insight needed

We were pre-approved before running credit
Message 6 of 14
ezdriver
Senior Contributor

Re: Obtaining a Mortgage in 30 days, Some issues, some help and insight needed


@Anonymous wrote:
We were pre-approved before running credit

Therein lies the problem. You still did not answer my question as to WHO PREAPPROVED you ... Wells fargo or some other "clown"?

You are right to question that preapproval letter. Without having reviewed your credit plus your verbally provided info on income/assets etc, that preapproval anin't worth the paper on which is is written.

 

 

Message 7 of 14
Anonymous
Not applicable

Re: Obtaining a Mortgage in 30 days, Some issues, some help and insight needed

Wells Fargo did
Message 8 of 14
ezdriver
Senior Contributor

Re: Obtaining a Mortgage in 30 days, Some issues, some help and insight needed


@Anonymous wrote:
Wells Fargo did

Thank you. Why am I not surprised? Those "loan officers"/"bankers" at Wells Fargo are a disgrace to the industry.

Message 9 of 14
StartingOver10
Moderator Emerita

Re: Obtaining a Mortgage in 30 days, Some issues, some help and insight needed


@ezdriver wrote:

@Anonymous wrote:
Wells Fargo did

Thank you. Why am I not surprised? Those "loan officers"/"bankers" at Wells Fargo are a disgrace to the industry.


^^^Well said EZ.

Message 10 of 14
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