What should I expect???

[girlfriday]

Hi all!

I'm new here. The hubby and I are looking for buy either FHA or Usda asap. We just took most of our tax return and paid of about 14 collections accounts in the last week. PHEW! Now we are woking towards buying. Here's our situation.

Husband - EX 609

Me - EX 632

Income 50k

Husband has a discharged bankruptcy that is 7 yo and a mortgage that he kept out of ch 7 that is almost 12 yo. We own our current house free and clear no auto loans/student loans/ etc. We both have a capital one secured card and pay the balance off monthly. The LO I spoke with won't pre-approve us until we get over 640 - any advice on how to get there quick? Our DTI ratio is fantastic.

TIA!

Brandon

[Wanna700ASAP]

Are teh collections being remvoed? Please give more info on your credit portfolio, you have to reach 640, and collections or late in the last year?

[girlfriday]

Correction there were 11 collections accounts. 4 are PFD the rest are PIF and settled. One was within the last 12mo. Also I'm in Alabama.

[tooleman694]

7 collections all at once showing paid is going to tank your score big time. Your probably gonna need about a year to recover the score drop.

[girlfriday]

I kind of expected that but they would not pfd and we were afraid of getting sued. The LO seems to think that having them taken care of will HELP us not hurt us. IDK.

[MovingForward_2012]

Your lack of credit is also hurting you as well.  You only have one credit card reporting good history.  That is not enough to offset all of the bad.  Also, most lenders require a minimum of 2 active trade lines on your report that are at least 12 months old.  If you decide to add new credit, realize the new account and inquiry will tank your score initially but after about 6 months of on time payments, you should see your score increase. 

[tooleman694]

I agree, I would open like 3 more credit cards right now.

[girlfriday]

I applying for  a BoA secured card but didn't get an instant approval, know anything about that?

[tooleman694]

You should get it.

[girlfriday]

I hope so I put in my bank info which left me kinda puzzled when they didn't confirm approval.