Will I get approved? building credit, steady job

[Yumsetti]

Hey guys!  

Any help would be appreciated.  I have been working like crazy for the past three years trying to get my credit to some normal place.  When I started I had a 525.  It has gone up and down since then but it has been a general slow increase.  This is the first time in my life I've been able to see and focus on the "long term" rather than "Instant"  Hard for me!

Anywho, I have my eye on a great "fixer upper" with good bones, but just needs a lot of cosmetic help.  The asking price is $120k but it has been on the market for 2 years and are motivated to sell and go low.  If you have any ideas on what my outlook is I would appreciate it!

1. Credit.  TU: 622; EQ: 637; EX: 599; I have 3 years of on-time payments; 8 charge offs/delinquents that were paid off 2010; I have 1 mortgage in good standing; 1 car loan in good standing; 4 student loans in good standing; 1 collection from a medical bill that appeared in 3/2012 and was paid off when I saw it- 8/12 - they didn't have my new address so decided to give it to collections! 
2. Income. DTI=10% with debt of $475
3. Source of income. REgular income = 3yr employment; Self employment income = 6yr employment
4. Employment - stated above
5. Assets/Reserves.  I will have a 6K down payment
6. Location.  Pennsylvania
7. Property. I have a property in mind - Single family home with renovation needs - would benefit from a loan like a 203 (k); Asking price 120k, surrounded by 200k properties
8. Value.  see above
9. Occupancy.  primary
10. Transaction Type. purchase

[Yumsetti]

Good News! I called the one collections account I had in March 2012 and they agreed to take it off my credit report completely.  I had moved and it went to collections because they couldn't find me.  Because I was monitoring my credit and paid it the month it came on my report they knew that I had done everything i could to pay it. 

That was the best converation I've ever had with a collections company!

[JM-AM]

You have a mortgage now?

How long have you lived in the house?

Will you be making new purchase your primary residence?

Are you selling your present home?

If the new purchase is an investment rates and qualifications are usual higher and stricter.

As of now I think you should work on your scores a little more first but thats just my opinion.

[Yumsetti]

Thanks for replying!

I do have a mortgage, but I am not selling the house.  It is a second mortgage and is 75% paid off.  My husband has owned the home since 2001, but will not be on the new mortgage because he has no income, but he does have a good credit score.  My new purchase will be our primary residence.  I am renting right now - LONG Story!  I had to move to make more money to pay off my debt.  

My credit card utilization will go from 70% to 10% next month and a negative account is "supposed" to come off.  I'll belive it when I see it.  I project my median score to rasie to 650...    

Eek!  I was hoping not to hear that.  But I need to go into it eyes wide open, so thank you!

[Anonymous]

I am in the process of trying to get my scores up too- best score qualifies but of course they use your midscore. Seems most places require a 640 for your mid-score so you aren't far away! They recommended to me, to lower my balances on my credit card and credit line on a checking account. My DTI is good but those two balances are near the limit.  LO said to get them within 50% of the balance, credit bureau said 30%. I am going to try to get them down to 30% just to be on the safe side.  Keep us posted on how things are going!

EQ 676, EX 629, TU 614

[Yumsetti]

I will keep you posted!  Three more weeks and then I can stop worrying!

[Anonymous]

Groov... you should see a bump at 50%, and another at 30%. I saw my score improbe greatly at these marks.