Scores 668,678,and 698....any hope?

Anonymous · ‎06-15-2009

I've done everything I can do at this point to improve my credit score. I'm at the point where time and maybe (big maybe) a GW are the only thing that could help me now. The uglies I have on my report are a few lates (over two years ago) and one credit card that was written off, went to collections, and was paid in full. (It was a card my ex had that I didn't know about. I ended up having to pay the collection off...) I have open credit cards, but I pay them in full each month...so no hope in any big bumps due to low balance.

So here I am, once with a sterling credit rating and now divorced with dings. I have enough cash on hand to pay for a house but the last thing I want to do is a cash close, it would wipe me out if I had to do that.

So oh great FICO's what are my chances?

Anonymous · ‎06-15-2009

Your scores aren't bad. Also, if you have enough cash on hand to buy a house outright then you really, really won't have any problems.....but even if you only had 3.5% of the purchase price in the bank you still would be fine.

If you go conventional, you might be dinged a little on the interest rate.

FHA only needs a 620 and I think if you go 15 year fixed with them that they don't charge PMI (not 100% sure on that) This will avoid the possibly higher interest rate you might get with conventional.

Good Luck!

Message Edited by 1111mel on 06-15-2009 03:43 PM

llecs · ‎06-15-2009

OP, make sure the scores you have are FICO scores. As of this past February, it is impossible to pull your own EX FICO without a lender's help.

Anonymous · ‎06-15-2009

I'm pretty sure those are the scores, at least that is what one lender told me. One of the lenders made it sound like my scores where horrible, the other (a broker) sounded more positive but he was more "sales" then the first guy.

I thought my liquidity would help, but neither lenders seemed to concerned (...or impressed) with that. I was told by a friend that it is very difficult to get a loan these days, that anything under 740 was considered "not good". The whole "good and not good" thing confuses me.

I saw several adds on the internet which seem to indicate that 660+ was good, Myfico seems to indicate that 660 is only "fair". When one lender asked me if my FICO score was fair or good I asked him to define "good"....he said 720+. So I am very confused about what is "good" these days.

In any case, they are taking a long time to get me a pre-approval letter so I can put an offer on a house. I guess I am just nervous. Thanks for the words of encouragement!

Anonymous · ‎06-15-2009

I have been getting pre-approved all day. FHA 30 year fixed. Only 3.5% DP. Mortgage Lenders pulled TU:697 EQ:696 and EXP:693 We have no negative marks in over 2 years. We carry very low debt. Everyone we talked to said with our numbers they were positive everything would be good and approved. And so far it has been. Pre-approved with everyone we have gone forward with so far.

llecs · ‎06-15-2009

ntkebh wrote:
I'm pretty sure those are the scores, at least that is what one lender told me.

My bad...I didn't realize those were from a lender. Congrats, BTW. IMO, you are in good shape, score-wise.

Anonymous · ‎06-15-2009

Well the thing is... you don't need a *good* score to buy a house. You need a good score to buy a home with a conventional mortgage to get a great interest rate.

You should see if you qualify for FHA, your score are plenty high for that and considered *good* in the FHA world There's also USDA but you have to be in a qualifying area and i can't remember but there might be something about not having a lot of money in the bank so that might not be an option.

I've been told it's pretty hard to get over 700 without having a good mix of credit (ie. having a mortgage as well as credit cards) so i wouldn't stress about trying to bump your score unless your only option is conventional.

Anonymous · ‎06-15-2009

@Anonymous wrote:

I've been told it's pretty hard to get over 700 without having a good mix of credit (ie. having a mortgage as well as credit cards) so i wouldn't stress about trying to bump your score unless your only option is conventional.

Not trying to hi-jack, just wanted to point out, that this is not true. Didn't want anyone to think they had to run out and get a loan to bump up their scores! When I apped for my mortgage back in Jan/Feb. my mid score was a 760 and I don't have anything except cards on my credit report. No student loans, mortgage, car loans, nothing, just credit cards and store cards.

Anonymous · ‎06-15-2009

Oh that's interesting, Up... and good to know. I always did wonder if there was any truth to that, thanks for clearing it up. We were thinking about paying off our car loan but then i was nervous i wouldn't have a good mix and i'm in the low 700's atm. Didn't want to dive down to the 600's again!

Anonymous · ‎06-15-2009

@Anonymous wrote:
Oh that's interesting, Up... and good to know. I always did wonder if there was any truth to that, thanks for clearing it up. We were thinking about paying off our car loan but then i was nervous i wouldn't have a good mix and i'm in the low 700's atm. Didn't want to dive down to the 600's again!

Nope, you are all set. Plus, I think even though your old loan will be paid off, just having it on your reports (which it should stay for up to 10 years with positive payment history) will still count in your mix.