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Wanting to purchase a new home in 6-8 months but lots of credit problems.

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Anonymous
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Wanting to purchase a new home in 6-8 months but lots of credit problems.

My husband and I are wanting to purchase a new home in 6-8 months but our credit score and history is not good. It's my fault as I suffer from depression and have not be able to function 100% and have had a lot of medical issues over the last 2 1/2 years (I'm currently receiving help...I understand I made a huge mistake and want to fix it.) Our credit scores are 611 and 602 and we have several late mortgage payments over the last year and half. We are current now and working to pay down credit cards, etc. and eliminate more debt by paying off one auto loan & line of credit in the next 6-8 months. We are both teachers and have about $70,000 in student loans. We have sold our house and will be renting off a family member for not much. We should have around $80,000-90,000 (20-25%) for downpayment after this time frame. Our combine income is $140,000. What are our chances of being approved for another mortgage and in a new home in 8 months? Any recommendations on mortgage lenders that work with customers trying to improve financially and are committed to improving their creditworthiness?  We have a plan...just praying it all works out. 

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Anonymous
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Re: Wanting to purchase a new home in 6-8 months but lots of credit problems.


@Anonymous wrote:

My husband and I are wanting to purchase a new home in 6-8 months but our credit score and history is not good. It's my fault as I suffer from depression and have not be able to function 100% and have had a lot of medical issues over the last 2 1/2 years (I'm currently receiving help...I understand I made a huge mistake and want to fix it.) Our credit scores are 611 and 602 and we have several late mortgage payments over the last year and half. We are current now and working to pay down credit cards, etc. and eliminate more debt by paying off one auto loan & line of credit in the next 6-8 months. We are both teachers and have about $70,000 in student loans. We have sold our house and will be renting off a family member for not much. We should have around $80,000-90,000 (20-25%) for downpayment after this time frame. Our combine income is $140,000. What are our chances of being approved for another mortgage and in a new home in 8 months? Any recommendations on mortgage lenders that work with customers trying to improve financially and are committed to improving their creditworthiness?  We have a plan...just praying it all works out. 


 

 

First of all, don't beat yourself up over your depression.  It is a real disease.  Glad to hear that you are getting help.  Far as your situation, in my opinion, your plan sounds great!  When you pay down those debts, your scores will increase.  Just make sure you apply for the mortgage before paying off the auto loan  because they want to see that installment loan on your report.  Far as the old mortgage baddies, i'm not sure how a lender will view that since by the time you apply your payment history will have improved.  I think you have the right thought to find a lender now to advise you all on what needs to be done.  I don't have any recommendations of a lender but perhaps other will.  What state are you in?

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Anonymous
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Re: Wanting to purchase a new home in 6-8 months but lots of credit problems.

Indiana

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