Shane ???

[fishbjc]

Hi Shane...have a question.  Thinking of selling our home to make a smaller purchase of a cluster home.  Here are the specifics

No BK

No Foreclosure

No Missed Mortgage Payments

Scores average high 5's due to debt ratio, which I will have paid below 10% by June 2008.

Cluster Home $190

Down Payment $130

Finance $60k, Taxes $4k 

Pre Qualified for 500K loan

Any foreseable issues?

Message Edited by fishbjc on 12-21-2007 08:06 AM

[ShanetheMortgageMan]

What is a cluster home may I ask?  I googled it and found some floor plans in retirement communities... is that what you are refrring to?

Are you sure the revolving utilization is the only thing bringing your scores down to the 500's?  Usually I see them in the 600's when high utilization, unless there were additional factors.

When you say pre-qualified for a $500k home, does that mean your debt to income ratio would support that much of a home?  If so, then financing $60k should be pretty doable.

[fishbjc]

A cluster home is simply a home that provides the homeowners snow removal/lawn care. 

According to my ScoreWatch..my debt ratio is horrible.  I agree.  I put 20k on visa for my sons college & stupidly lowered the available credit down to 15k, I now owe about 11k.

Best Buy at limit (3K)

Sears at 40% ($175 balance)

Firestone 50% ($500 balance)

Lowes at limit (we're finishing current basement)  again this always reports at full balance owed)

Dillards 25% ($268 balance)

GM Card at limit (I pay it in full each month, but it always reports at full balance owed)

Bank of America, 250 balance, 2K cl

Good payment history, no collections, no bankruptcy, no liens. 

American Express closed by credit grantor.

[ShanetheMortgageMan]

Ah, now I know what a cluster home is.  Thanks.

ScoreWatch comments on your utilization or your debt ratio?  Utilization is amount owed on credit cards vs. available limit, debt ratio is the percentage of your monthly payments (and new mortgage) compared to your income.  I'm not familiar with all of the features ScoreWatch offers.

For a score boost I'd pay Best Buy, Sears, Firestone, and Dillards off.  For Lowe's you can ask them to report your credit limit to the bureaus, so it won't appear as if you are maxed out.  For the GM card, once it's paid to $0 your loan officer can do a "rapid rescore" and adjust your credit reports to reflect it as a $0 balance.