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mizmagic wants a house

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Anonymous
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mizmagic wants a house

Hello All!

 

I am in the early stages of the homebuying process and would love some advice. I am a single mom with one child. I currently have $25K worth of education debt, 8-14 negative but paid tradelines between my 3 CRs and no downpayment as of yet. My yearly teaching salary is $58K/year.  My credit scores are up-to-date (see below). How much house can I afford and what strategies could I use to get the most bang for my buck with increasing my score to at least 640 across the board?

 

Thanks in advance!

 

mizmagic

Message 1 of 4
3 REPLIES 3
courtney091082
Regular Contributor

Re: mizmagic wants a house

If you have credit cards try to pay them all to 0, other than 1 card which should report 1-9%. If you had high utilization that should give you a lot of points to lower it.

 

On the paid CO's do GW's.

 

On the unpaid CO's do PFD's.

 

That's a good start Smiley Wink

9/1/2012 ...DRUMROLL .... EQ .. 776!!

I'm FINALLY a homeowner .. 10/24/12!!!!

My Cards ~~~GARDENING~~~ BNSF CU ($1000) BOA ($2500) Amazon / GE ($900) AMEX BCE ($2500) Chase Freedom ($3000) US Bank Cash + (7500)
Message 2 of 4
Anonymous
Not applicable

Re: mizmagic wants a house

Thanks Courtney! I have one low limit credit card that is belw 9% utli. I am nervous about applying for more cards because I don't want the inquiries to bring my scores down. I started my GW campaign last month and have made few gains so far. I am wondering if there is anything more that I could be doing. I have made payment arrangements so that I can my creditors off of my CRs. I am goodwilling the paid itmes on my CR and waiting. I just finished rehab on my student loans. I just want to make sure that I am doing everything that I can to make progress. 

Message 3 of 4
StartingOver10
Moderator Emerita

Re: mizmagic wants a house

Save as much as you can. It's not possible to determine how much house you qualify for based on your post. We would not only need to know income, but your current debt (including car payments etc) plus real estate taxes and insurance for homes in your area.

 

You are better off going to a local mortgage banker in your area after you have saved up enough for a 3.5% down payment (minimum) plus closing costs and pre-paid expenses. Not knowing where you are - its not possible to know if you can get a $50k home in your area or if the min home is $250k. There are areas of the country where real estates taxes and insurance are very low and other areas where they are not at all low.

Message 4 of 4
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