Reply
Established Member
laella
Posts: 25
Registered: ‎04-26-2013
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...

This is great news. Congrats to you.

I have two credit cards

One retail and one not but I am going to try and pay them off as best as I can,

May I ask (because I am not sure) once you pay them off and you limit your spending do they lessen your line of credit?

 

Frequent Contributor
kimmiller112
Posts: 472
Registered: ‎04-09-2012
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...


laella wrote:

This is great news. Congrats to you.

I have two credit cards

One retail and one not but I am going to try and pay them off as best as I can,

May I ask (because I am not sure) once you pay them off and you limit your spending do they lessen your line of credit?

 


Companies can cancel a card for non-use but it would be unlikely for them to lessen your line of credit for using the card a little less right now..  My suggestion is to buy something small on the store card every 4 months or so and pay in full.  With the regular credit card, use it for your regular expenses like groceries.  I am watching what I spend right now so that my DTI stays as low as possible.  Also, I'm only letting about 1 - 2% utilization report (normally, I don't care about it and range from 0 - 10%).  Since I am building, my credit will be pulled again 45 days prior to closing (which could be December or January).  If your DTI is low, then you don't have to worry about it so much.  

Barclays USAir World MC $8300 - DCU $7500 - USAA World MC $7000 - PayPal Extras MC (GE) $5500 - Chase Saphire Preferred $5000 - Discover It $6000 - Barclays Sallie May $2700 - Chase Freedom $1000 - Capital One $8500 (business) - store cards ranging from $500-$9500
Established Member
laella
Posts: 25
Registered: ‎04-26-2013
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...

Do you think it would be smart to trade in credit cards I have for lower interest rate or if I just pay them off it should not really matter.

 

I was told also you have to have a certain percentage of funds in the bank for a period of time in order to get approved. I am saving as I go.

How far do they look back?

 

You are sooooooooo helpful with this.

Thank you all!!

Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...


laella wrote:

Do you think it would be smart to trade in credit cards I have for lower interest rate or if I just pay them off it should not really matter.

 

I was told also you have to have a certain percentage of funds in the bank for a period of time in order to get approved. I am saving as I go.

How far do they look back?

 

You are sooooooooo helpful with this.

Thank you all!!


I would not recommend you close accounts just to open new ones.  That will decrease the average age of account which factors into your credit score, so your score will likely be lowered.  I'd recommend you just pay them off and keep them open.  Then after you purchase a home you can apply for lower rate credit cards, but unless the current credit cards charge you a monthly or annual fee then I would still keep them open.

 

Lenders require the past 2 months of bank statements.  The funds you'd need will be for the down payment, any closing costs the seller isn't willing to cover, and in some situations you will need an additional amount equal to 2 months of your proposed housing payment (principal, interest, taxes, insurance - PITI for short).  You can also use the vested balance in retirement accounts, money market account, stocks, etc.

Established Contributor
jordanmedical
Posts: 1,011
Registered: ‎04-08-2012
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...

Rubbish LOL I am a single female and closed on my first home on May 8th. Statistics actually show an increase in single female buyers recently :smileyhappy:

-Rebuilding with CapOne Cash: $1.5k, NFCU cashRewards $8.5K, NavCheck $5K, Wal-Mart: $1.1K, Sam's: $1.2K, Amazon: $1.9K, Apple Barclay: $3K, Haverty's: $1.5K, GE capital: $5K, Sears: $250(AU), PP MC:$1.5K, CareCredit:$3K (closed 1st home 05/08/13)
Starting Score: 492-TU04, 480-EX FICO V2, 467-EQ Beacon 5 (Via Mortgage PreQual March '12)
Current Score: EX,EQ,TU (lender pull): 652, 659, 689, Walmart TU FICO: 691 (05/13)
Goal Score: 700

Take the FICO Fitness Challenge

Frequent Contributor
kimmiller112
Posts: 472
Registered: ‎04-09-2012
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...

When are you thinking about applying for a mortgage?  If it is within 6 months, you do not want to do anything that will cause a hard pull, so no new credit cards (even if they have better benefits to you) and no new requests for increases in credit.  When you apply for a mortgage, you will be asked for 2 months of bank statements, so you will want to show that you have your down payment/closing costs in your accounts.  And, like a previous poster said, you may be required to have a couple of months in reserves.

Barclays USAir World MC $8300 - DCU $7500 - USAA World MC $7000 - PayPal Extras MC (GE) $5500 - Chase Saphire Preferred $5000 - Discover It $6000 - Barclays Sallie May $2700 - Chase Freedom $1000 - Capital One $8500 (business) - store cards ranging from $500-$9500
Established Member
laella
Posts: 25
Registered: ‎04-26-2013
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...


jordanmedical wrote:

Rubbish LOL I am a single female and closed on my first home on May 8th. Statistics actually show an increase in single female buyers recently :smileyhappy:


Woot I keep getting more Positve News.

I wonder if some of these people I am talking to are trying to sabotage my goals or just really dont know anything about real estate or just assume that they do.

THANK YOU

Established Member
laella
Posts: 25
Registered: ‎04-26-2013
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...


kimmiller112 wrote:

When are you thinking about applying for a mortgage?  If it is within 6 months, you do not want to do anything that will cause a hard pull, so no new credit cards (even if they have better benefits to you) and no new requests for increases in credit.  When you apply for a mortgage, you will be asked for 2 months of bank statements, so you will want to show that you have your down payment/closing costs in your accounts.  And, like a previous poster said, you may be required to have a couple of months in reserves.


I am hoping to "start" applying within 6 to 9 months but wanted to start really learning, get educated from you all :smileyhappy:  , find out what is really realistic with getting approved and what I need to prepare for.

 

 

Established Member
laella
Posts: 25
Registered: ‎04-26-2013
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...


ShanetheMortgageMan wrote:

laella wrote:

Do you think it would be smart to trade in credit cards I have for lower interest rate or if I just pay them off it should not really matter.

 

I was told also you have to have a certain percentage of funds in the bank for a period of time in order to get approved. I am saving as I go.

How far do they look back?

 

You are sooooooooo helpful with this.

Thank you all!!


I would not recommend you close accounts just to open new ones.  That will decrease the average age of account which factors into your credit score, so your score will likely be lowered.  I'd recommend you just pay them off and keep them open.  Then after you purchase a home you can apply for lower rate credit cards, but unless the current credit cards charge you a monthly or annual fee then I would still keep them open.

 

Lenders require the past 2 months of bank statements.  The funds you'd need will be for the down payment, any closing costs the seller isn't willing to cover, and in some situations you will need an additional amount equal to 2 months of your proposed housing payment (principal, interest, taxes, insurance - PITI for short).  You can also use the vested balance in retirement accounts, money market account, stocks, etc.


Thank you Shane.

I am making a "check list". I am sure there must be on the website.  I do have my vested balances in retirement accounts sitting there (hopefully for a long long time until I need it) but will keep these additional costs in mind.

 

  • down payment
  • any closing costs the seller isn't willing to cover
  • additional amount equal to 2 months of your proposed housing payment (principal, interest, taxes, insurance - PITI for short)

I am sure I have more questions. I hope you dont mind ! All of you.

 

 

Super Contributor
ShanetheMortgageMan
Posts: 8,254
Registered: ‎09-28-2007
0

Re: Single Female - looking to buy a home as a first time buyer and looking for advice...


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}