Established Member
Ms_Pooka
Posts: 16
Registered: ‎10-04-2012
Intro and homebuying question

hello! I have been lurking around for a while, you guys have great information. My question is about buying a home. MY BK chapter 7 was discharged October 2011, I am one year out and have the following:

Cap1  with $500 CL (started October 2011)

Cap1 car loan for 10k (started June 2012)

and just recently I applied for and was approved for two more cards

Cap1 rewards $1000 CL (Oct 2012)

Credit1  CL $300

 

My question is, do I need any more credit? I know I need to keep my total usage under 10%, but is the 1800 plus the car loan enough to show that I can manage it? My goal is to buy a home next October at the end of my two years post discharge....

Starting Myfico Scores: 574/571 (9/2012)
Current MyFico Score: 625 (10/22/2012)
Goal: 640 mid score for home purchase by October 2013

App free since 10/23/2012




In the garden until 9/2013!
Credit 1 $300/ Cap1 $500/ Cap 1 Rewards $1000


New Contributor
Elcid89
Posts: 567
Registered: ‎10-04-2012
Re: Intro and homebuying question

You should be fine. You have demonstrated revolving and installment loans, and a comfortable number of trade lines.

 

Just keep your utilization below 20% (maximum ...) and PIF each month if possible. Religiously, and I do mean religiously, make your payments on time.

 

3 to 6 months (6 months is ideal) out from your planned mortgage application date, stop applying for new credit. You want the mortgage lender to see established lines with a healthy payment history and low utilization, along with low to no inquiries for the 6 months preceding the app.

 

Do that and your chances of being approved will increase. Just don't get discouraged if lenders decline to buy the mortgage. a BK is toxic, and that may slot you into less than prime lenders & rates, but anything can be done with enough work and diligence. Just stick with this and live the lesson that it teaches about managing debt.

FICO 04 scores: 809 (EQ) 812 (EX) 818 (TU)

Amex Platinum NPSL - Citi HHonors Sig. $58k - BMW Ultimate $40k
Chase Sapphire Preferred $62k - Merrill Lynch + Signature $41k - USAA Rate Advantage $28k
NFCU Flagship Signature $50k - USAA Cash Rewards AMEX $28k
Citi Platinum Select / AAdvantage Signature $31k - Chase Amtrak Rewards World MC $41k

Established Member
Ms_Pooka
Posts: 16
Registered: ‎10-04-2012
Re: Intro and homebuying question

Thank you! I think since I have those three cards, I am done applying for anything. Im praying for that last 70 points to come over the next year with good payments and low utilization. I appreciate the advice.

Starting Myfico Scores: 574/571 (9/2012)
Current MyFico Score: 625 (10/22/2012)
Goal: 640 mid score for home purchase by October 2013

App free since 10/23/2012




In the garden until 9/2013!
Credit 1 $300/ Cap1 $500/ Cap 1 Rewards $1000