08-02-2012 08:55 AM
I am not sure if I should post this in Rebuilding or Mortgage so I will post in General Forums for now. I was originally going to wait and apply for a mortgage around November due to my lease being up March 1st. and my credit would be a little bit cleaner then. I have a First Premier CO, Best Buy CO, and a collection from Fair Collections & Outsourcing (all paid) on my credit report. I had a paid judgment removed in July so I am hoping that would help out a little bit when applying.
Best Buy - due to fall off report Oct 2012
First Premier - due to fall off report Nov 2012
FCO - due to fall off report Jan 2013
I have changed my mind and think I would like to apply for mortgage now. The condo that I am currently renting is literally falling apart. The foundation is starting to go and getting worse rather quickly. I woke up this morning to my counter tops no longer "fitting" together due to this issue. I have talked to my landlord and he just says he isn't sure really what to do.
So my question.....would it be smarter to wait until my CO's fall off and pray my house stays standing or would a bank not really think much about these since they are so old and paid? I have read, read, read and thank you all so much here for even getting me to this spot of "thinking" about a mortgage.
08-02-2012 09:13 AM
Do you have any idea where your FICO scores are now ? If not, then I'd recommend pulling the Equifax FICO score from myFICO, it is the same model FICO score that will be used by your mortgage lenders.
Having these negative accounts off your reports will likely help your scores, but it would helpful to know where you stand now.
08-02-2012 11:01 AM
I pulled my score in July from here and my Equifax was 671 with the judgment still on my report. The judgment is now gone so I am hoping it would either be the same or a little bit higher. I have the USAA monitoring service to see when my items actually fall off my reports, but obviously can't rely on their scoring.
08-02-2012 11:04 AM
Yeah hopefully it would be higher ~ although the CO accounts will probably still keep your score down until they come off....
08-02-2012 12:35 PM
I guess it depends on how eager you are to get into a house. What is your creidt score now? Look into an FHA loan...they are a little more lenient. (I got one with a 650 credit score and $0 down in 2008). When your collections fall off, then you can refinance at a lower rate through an FHA streamline, if they're lower at that point. Based on my own experience, I'd recommend that.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.