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Established Contributor
jadeite788
Posts: 510
Registered: ‎09-25-2009
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Ok Now Wha...My journey to home mortgage

Okay, now I just found out over the weekend the credit card that I applied for that I "THOUGHT " i was decline for, they sent me a letter in the mail stating I have to call them for further consideration.  Lo and Behold I got approved this morning. 

 

So I have 2 unsecured credit cards, one $500 about to be 6 months, the other $1300 just approved today (I really hate cc, they is the debil)

I did a GW for a university loan, and i got it deleted, boosted Transunion Score

I did another GW on Sallie Mae, their error, still waiting for fix, if deleted it will boost my credit score for all 3 credit reports.

On February 16th, i am attending a homeowners class so I can get the T 5star down payment assistance

During the month of February I will be looking at homes.

 

At the end of the month I will go to 4 different lenders.  My CU, 2 LO, and a 203K FHA lender.

 

 

Your thoughts.

 

 


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

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Contributor
Jaguars28fan
Posts: 77
Registered: ‎07-12-2011
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Re: Ok Now Wha...My journey to home mortgage

I don't know if it will matter, but  I always read that you shouldn't apply for anything about 6 months before you are looking for a mortgage.  Besides that, it looks ok.  Keep us updated...  I'm in the same situation.  Applying for USDA Direct first, but back up plan is 203k w/ down payment assistance.  There's not too much information on 203k loans and I've talked to a few 203k lenders but hard to tell who is good or not. 

Established Contributor
jadeite788
Posts: 510
Registered: ‎09-25-2009
0

Re: Ok Now Wha...My journey to home mortgage

Ok that,  i did not know. Mind on a whirl wind.  See and my husband thought it would be better to get a HUD Home.  But I see alot of cosmetics with HUD Homes, so I am on the fence.


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

Take the FICO Fitness Challenge



Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Ok Now Wha...My journey to home mortgage

Credit cards are not the devil. I told you to just give them a call, you could have known you were approved sooner.

I applied for a new car lease and a new credit card in Nov and Dec and I am almost done with UW and closing bound. OP needs to garden more trade lines because her mid fico is around 615. I have been forbidden from using my new credit card for anything until after closing...one of my conditions was showing a zero balance on that card.

Applying or not applying for new credit right before a mortgage is very individual specific. I agree that OP probably won't see a boost from the new credit card by the time they plan to apply for a mortgage, which is end of Feb, so I agree that obtaining the new credit card hurts more than it helps because OP will see a drop in score from the inquiry and another drop in score from the new account. If she waited 3-6 months to apply, she would see a recovery from those initial hits and small boost to her score.

I applied so close to applying for a mortgage because my score is 703 (no where near borderline), my car broke down with costly repairs at 100K miles, plus I needed a new card to charge new home stuff after closing prior to my bonus coming end Feb/early Mar.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Established Contributor
jadeite788
Posts: 510
Registered: ‎09-25-2009
0

Re: Ok Now Wha...My journey to home mortgage

i had not had a credit card in over 10 years.  That is why I stated they the debil.... I only got it because of wanting a house.  I generally like to pay cash for everything.   I don't like debt.  Just that I am frugal


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

Take the FICO Fitness Challenge



Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Ok Now Wha...My journey to home mortgage

You are paying cash through a credit card if you pay in full every month and if it is a rewards card, you earn cash back for charging things you normally pay cash for. It is simple, don't charge it if you wouldn't pay cash for it. I see you didn't read anything I wrote about how to properly garden your credit cards. If I paid cash for all my normal everyday expenses instead of using my rewards card from July to now, I wouldn't have $100 bucks in cash back that I can have sent to me as a check to cash into my savings account at anytime.

If you need to use credit for a non typical expense like a home inspection versus groceries, just make sure you have the money in savings to pay for that additional charge. If you don't, that is where you get into trouble. The way I told you to garden your cards involves incurring no more additional debt and actually will pay you money in cash back.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Established Contributor
jadeite788
Posts: 510
Registered: ‎09-25-2009
0

Re: Ok Now Wha...My journey to home mortgage

I already know how to properly utilize my credit card that is why I didn't  address it.  I have had one of my cards for almost 6 months.   Me personally I don't believe in debt.  I have a couple of things I am waiting on just for a credit score boost.  I don't know where you get 615 from.   I am just looking at all options in owning a home.  


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

Take the FICO Fitness Challenge



Member
Strutte2
Posts: 35
Registered: ‎01-11-2013
0

Re: Ok Now Wha...My journey to home mortgage

My loan officer told me they issued pre approvals for four months, so I would check with your lender on how far out their preapprovals go.

Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

Re: Ok Now Wha...My journey to home mortgage

I'm not going to provide you anymore advice going forward. You can listen to what others have to say or figure it out on your own.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014

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