Qualify for mortgage?

[Anonymous]

My SO is planning on purchasing a house before our lease is up (Feburary).  Right now his TC shows TU 589 EX 579 EQ 585.  From what I can see the only thing holding him down is the util. on credit cards.

B of A - 497/500

Cap1 - 496/500

Credit One 596/600

Orchard - 273/300

Household - 295/300

Goodyear - 683/800

Tribute - 544/550

Sears - 1088/1070

BP - 285/300

Exxon - 60/200

I know right now his util. is 94% and we are planning **crosses fingers** to pay that all down to 5% util. by the first week of November. My question is this - after balances are paid down, do you think that would give him enough of a boost to qualify for a mortgage?  We do have a few months until the end of our lease, so I'm hoping that those months will give us enough time to bring scores up.

Oh, there are 2 collections that the CA has agreed to a PFD so those will be paid this Friday.  I'm sure that will help too.

Any advise, thoughts, feelings, ANYTHING would be greatly appreciated. All my contacts at brokers are begging me to let them pull his credit and I said NO WAAYYYY.. Not until I know were ready and it won't be a waste of an inquiry!

[Boswd]

getting all this down should give him a very nice boost in score.   The only thing I would be concerned about is the time frame you are working with.   How long can it be until you pay all this down?   Because even after you pay everything down you then have to wait until everyone reports and the CRA"s update all the info.     So the quicker you get going on this the better.

[Anonymous]

If my budget works out correctly, by the first week of November.  I knew I needed to do it asap to give creditors enough time to report, so even if my dog doesn't eat at least the scores will go up!!!

JK I will feed him lol

[Boswd]

That should allow for enough time for everything to report.   But in the mean time, don't apply for any new credit, keep all your bills current including your utilities bills and start increasing your assest such as savings.

[ShanetheMortgageMan]

You started out by saying the only thing keeping the scores down is utilization, but then go on to mention some collections you are PFD... is there anything else negative on credit?

Message Edited by ShanetheMortgageMan on 10-18-2007 01:37 AM

[Anonymous]

No, I double checked it again and thats it - high util. and 2 collections.   No late payments, 2 paid car loans, the closed CCs were in good standing, no late payments at all (there was one but through a GW I got them deleted).

[ShanetheMortgageMan]

Then I agree, you'll see a tremendous increase in scores, wouldn't be surprised if it's 100+ points.

[ujocka]

I would suggest you have him pull his FICO scores. The scores you listed are from TC, aka FAKOs. There could be a drastic difference in the two.

[Anonymous]

Yeah, as soon as we pay off the CCs I will pull his FICO scores.  I thought about doing it first but figured I'd save my money until its actually worth looking at!

Shane - 100 pts really?  My heart stopped just thinking about it lol, I will hope for the best and pray that the few months we have until app. time will be worth it. Wish me luck! 

[ShanetheMortgageMan]

If there is nothing else bad on credit and utilization is paid down that low, then yeah, I've seen huge increases in scores of that magnitude.