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New Contributor
TheRealJosh94
Posts: 54
Registered: ‎12-30-2012

quick little update

Welcome, FicoForum

 

This is my up to date with my life/credit. First off, I would like to thank this Forum with all the help and advice on the importance with credit and how to correctly take use of it. This month was nothing more than a blessing. I'm tell you this because I am finally a Home owner (with my mom consigning)! I was approved for a single family home with an FHA loan through the government. With the help with my credit history and work income, we were both approved for a home just outside of DC. I give the majority of the props to this forum for helping me understand what and how to keep my credit healthy. I want to pass on the advice I was took onto whoever was in the market for a new home or even an auto loan. First off, keep your debt to income low as possible. My debt to income ratio was 5% which was awesome! And banks usually like to see the ratio under 50%. Second, have or keep a job for more than two years. The longer the better, especially at same job. Third, have a down payment, and make sure it's something. I had saved up 15,000 which wasnt a lot, but it was better than nothing. This also helps you out on what you can afford and your monthly payment. Fourth, make sure your bank statements are up to date, loan officers will take a look at your bank statements (savings, checking, etc.) , pay stubs, taxes, and proof of employment. Lastly, make sure your credit file is as clean as possible. Meaning no foreclosures, bankruptcy, collections, etc. Loan officers will see what credit cards, auto loans, student loans, home loans you have opened. Everything. I had a couple of student loans on mines and was that close for being rejected. But showing that I was still a student with a job, I had to give them proof that those loans were not gonna be paid until I was finished with school. Which was okay in that point. Lastly, be patient, these loans take time to process and requires mutiple reviews. DO NOT and I repeat DO NOT carry much cash. Loan officers will need proof of on deposits over $500 that wasn't paid by your employerrs and will need documentation on where that money came from. (Just an FYI) Moreover, have enough cash on the side for closing, which will be needing on the closing day via cashier checks only. Now in some instances, some home owners selling the house will provide or help with the closing. In my case, the government helped me a little with the closing which was $7,000. Other than that it, if anyone wants to add on, please feel free to do so. Have fun with home buying, Intreset rates are low right now (4% for me) . At 19, almost 20 years old I believe that i made the right investment for my future.  if it wasn't the help of you guys, I would not be in the sitsuation I'm in and I'm very grateful for forums like this to exist! :smileyhappy: 

 

Current line: Capital One Journey's, $500 CL, Discover IT card, $2100 CL , American Express Gold Card, NPSL, My BestBuy Citi Card, $3000
Contributor
Dalanar
Posts: 102
Registered: ‎05-27-2014

Re: quick little update

Congratz on the home purchase and thanks for sharing these helpful tips.  I didn't know that loan officers actually go into your statement history to find out the source of income. 

Experian: 723 Equifax: 730 Transunion: 742
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Valued Contributor
BluePoodle
Posts: 1,331
Registered: ‎05-15-2013

Re: quick little update

Congratulations on your new home!!!!


Hard Pulls: EX 4 | EQ 6 | TU 4 - Last App July 27, 2014
EX 705 | EQ 698 | TU 709 Oct 2014 Gardening to Jan 2015
Mega Contributor
coldnmn
Posts: 14,080
Registered: ‎08-08-2011

Re: quick little update

Congrats on your new home! Thanks for sharing.

 

 

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