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Please Help!!! Mortgage Scores

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SouthJamaica
Mega Contributor

Re: Please Help!!! Mortgage Scores


@lch4 wrote:
Looking to obtain a mortgage loan in the next few months. I've already spoken with a realtor and had my scores checked to see where I stand. Scores came back Transunion 579, Experian 538 and Equifax 511. I was given a to do list. The lender will pull scores again in 120 days and my scores will increase to the needed 600, if I follow the steps below.
1. Open two credit cards. Min of $300. Keep the balance between $1-$25 and NEVER let the balance of $0 report to credit agencies.

You've been given wrong advice. Do not open any new cards.


2. Pay off Fingerhut card $172 balance to $0 and keep it there.

OK

3. Pay down Capital One card, balance $406 limit $500

Let $25 or so report, then pay it off immediately after statement cuts. Have other 2 cards report zero balance.


4. Don't payoff any collections accounts. Currently have 4 accts.

This sounds wrong to me but I don't have the expertise to tell you. Others here will probably tell you what to do.
Certainly you should send verification letters to the bureaus to try to hasten their removal.


5. Continue paying Nelnet student loan on time, no late payment.

Of course.


6. Great Lakes student loan is in deferment until 9/2017

7. Remove any dispute verbiage from credit reports

OK

Your expertise is needed. What will help me maximize my mortgage scores?

Current Status of Cards
Fingerhut Card- Balance 0 Limit $1300
Capital One Card- Balance $11.33 Limit $500
Credit One Card- Balance $75 Limit $400
First Progress Card- Balance $29 Limit $300 .

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 11 of 22
SouthJamaica
Mega Contributor

Re: Please Help!!! Mortgage Scores


@lch4 wrote:
At the time of having my scores I only had one credit card. The Credit One & First Progress cards were opened last month. So basically I should only keep one credit card open with a very small $5 balance and the other cards need to report a $0 balance.

Is there any reason why the realtor said not to let any card report a $0 balance?? I really didn't understand that concept.

No, the realtor didn't know what he/she was talking about.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 12 of 22
909
Regular Contributor

Re: Please Help!!! Mortgage Scores

I'm a bit confused. Are you talking to a realtor or mortgage lender about your credit scores? A realtor
helps people buy and sell property. The don't lend money. At this point it seems you should be talking to a lender who will have much better experience in working with people to qualify for a loan.

You can get this loan but it will take time. Coming here for advice is a great step forward. Well done.
Fico 8 Scores
7/2020: EQ - 842; TU - 832; EX - 848
10/2017: EQ - 823; TU - 835; EX - 824
05/2016: EQ - 712; TU - 706; EX - 710
11/2015: EQ - 694; TU - 651; EX - 653
5/2015: EQ - 670
5/2014: EQ - 653
11/2013: EQ - 645
05/2013: EQ - 656
11/2012: EQ - 646

Eight CCs ($179,500 CL, 0%-1% UTIL)
AoOA = 18.6 years, AAoA = 60 mos., AoYA = 18 mos.
One mortgage, one HELOC, no car loans.
Derogs from 2009 and 2010 now gone after 7 years. I started paying attention to credit scores in about 2014. It's taken a few years but credit scores are now good after starting in the high 500s back in 2011

Message 13 of 22
Anonymous
Not applicable

Re: Please Help!!! Mortgage Scores

I have a thread in this forum called "What kind of increase will I get?". It's my journey of increasing my mortgage scores from February 2017-present to be able to get my mortgage approval. In that time period, I raised my mortgage scores 102 points. 

 

I'm not saying what worked for me will work for you, but at least you can read about my journey. 

Message 14 of 22
Anonymous
Not applicable

Re: Please Help!!! Mortgage Scores


@909 wrote:
I'm a bit confused. Are you talking to a realtor or mortgage lender about your credit scores? A realtor
helps people buy and sell property. The don't lend money. At this point it seems you should be talking to a lender who will have much better experience in working with people to qualify for a loan.



Good catch here.  In going back and reading the first few posts by the OP, it does appear that the credit advice he's getting is from a realtor.  That advice definitely should be ignored.  The fine folks on this forum will have much better advice for you.

Message 15 of 22
SouthJamaica
Mega Contributor

Re: Please Help!!! Mortgage Scores


@Anonymous wrote:

@909 wrote:
I'm a bit confused. Are you talking to a realtor or mortgage lender about your credit scores? A realtor
helps people buy and sell property. The don't lend money. At this point it seems you should be talking to a lender who will have much better experience in working with people to qualify for a loan.



Good catch here.  In going back and reading the first few posts by the OP, it does appear that the credit advice he's getting is from a realtor.  That advice definitely should be ignored.  The fine folks on this forum will have much better advice for you.


Interestingly the only credit advice I've ever received from anyone was from a realtor.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 16 of 22
Anonymous
Not applicable

Re: Please Help!!! Mortgage Scores


@SouthJamaica wrote:


Interestingly the only credit advice I've ever received from anyone was from a realtor.


I assume you mean outside of this forum Smiley Wink

 

Knowing what you know now to be true, was the advice you received from the realtor "good" or "bad" in your opinion?

Message 17 of 22
SouthJamaica
Mega Contributor

Re: Please Help!!! Mortgage Scores


@Anonymous wrote:

@SouthJamaica wrote:


Interestingly the only credit advice I've ever received from anyone was from a realtor.


I assume you mean outside of this forum Smiley Wink

 

Knowing what you know now to be true, was the advice you received from the realtor "good" or "bad" in your opinion?


The advice was accurate. It was before I had any credit. He gave me advice on how to go about getting a credit score so that down the road I would be able to get a mortgage.

 

However, the truth is that I resent the advice I got, because he also was advising me affirmatively to go do it... get credit so that I could qualify for a mortgage some day. I look back on that day as a day that I fell off a cliff.  It was actually the worst day of my life, because it was the worst mistake I ever made. I was much happier before I began to owe money. I wish I had disregarded his advice, and stayed debt-free.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 18 of 22
Anonymous
Not applicable

Re: Please Help!!! Mortgage Scores

I used to be a realtor and I knew how to rebuild credit.

Message 19 of 22
Anonymous
Not applicable

Re: Please Help!!! Mortgage Scores


@SouthJamaica wrote:



The advice was accurate. It was before I had any credit. He gave me advice on how to go about getting a credit score so that down the road I would be able to get a mortgage.

 

However, the truth is that I resent the advice I got, because he also was advising me affirmatively to go do it... get credit so that I could qualify for a mortgage some day. I look back on that day as a day that I fell off a cliff.  It was actually the worst day of my life, because it was the worst mistake I ever made. I was much happier before I began to owe money. I wish I had disregarded his advice, and stayed debt-free.


But did you ever get a mortgage, or do you plan to?  Had you not taken his advice, wouldn't you to this day have no credit/score and thus not be able to apply for a mortgage?  I get what you're saying, but I sort of feel that it's a necessary evil, no?

Message 20 of 22
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