Should I wait?

[jonjohn]

Okay... There is so much info here to read that it gets confusing.... I have been on MyFico for a while now and learned a great deal. Here is my current situation...

My credit score took a little dive7 months ago from 648 to 629 due to a collection that I paid off and closed. My score is now at 638 and SLOWLY climbing.

My current status is: No delinquencies (last one was 7 months due to the above acct) no other's for the past 2 years, No collections, No judgements. My 2 credit cards are a bit high for their limit. $1,900 for $3,000 limit. But, I have never missed a payment. My current auto loan, I have never missed a payment. Student loans are current. I figure by the end of the year I can get my total of $1,900 down to about $900. The simulator says my score should be between 668 and 708 at that point.

My question is... I am okay to apply for a mortgage with my current score and current history? ...By the end of the year til it is 668-708? Or, should I keep waiting?

Thanks in advance

[Ron6262]

     I was just in a similair situation, found the house I absolutely wanted at a price I couldnt walk away from so I went for it.  I just got an approval with a 638 mid.  My rate is 3.75 for 15yrs.   I know I could have done better waiting on the score to rebound, but the house was such a deal it made up for the score.

[Booner72]

If I could do it again, I would have made sure my mid score was 640+ before I did anything, though I know people get loans with scores lower than that.

[jonjohn]

I'm sorry... What is mid score? Average of the 3?

[Ron6262]

  Mid score is what most of the lenders, if not all nowadays use to rate your credit, they throw out the high and the low and use the mid.  I was 675, 638 and 634, so to the lender I was 638.

[jonjohn]

Okay... gotcha.... I think 638 whould be my mid then....

[tammyjk]

You stated your last late payment was 7 mos ago?  Most will want a year without lates.  I believe getting past that one year mark will also jump your score a bit.  I would either work on getting that removed or wait it out for a few mos. 

[K_J]

Booner,

 what is the reason for that conclusion?

[jonjohn]

I most likely won't do it until the end of the year or the beginning of 2013....

[Booner72]

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@K_J wrote:

Booner,

 what is the reason for that conclusion?

---

The waiting for midscore to be over 640?  Because when we went into the short sale my starting scores were low (see below) and the LO and I were just banking on me getting them up before we heard back from the bank......  - so for three long anxious months, I was super worried that I wouldn't get the house bc my scores wouldn't make it.  If it wasn't for this forum, i wouldn't have for sure.  The advice the LO gave me using her score predictor program was nothing compared to what I got here!  And my EQ never even made it - it got to 630.  TU saved the day and my mid ended up being 653.