topic Re: Help me prepare for Mortgage App in Mortgage Loans

Help me prepare for Mortgage App

spudbro — Sun, 11 Nov 2012 22:41:30 GMT

So I need some input/recommendations on getting my credit score up in the next 6 months. I'm trying to get my credit score above 720 so I can get get approved for a mortgage. I'm not sure if this is the appropriate forum to be posting this in?Mod's please move is this is not the appropriate section.

So in March of 2012 I decided it was time to start working on my credit and cleaning up all of the damage I did. I pulled my credit and had a score of 460 and about 13 collections. I immediately started working on those and have since got all of those deleted from my reports. The only (a big one) negative item left is late payments on an auto loan I had. The auto loan is now paid off and the last late payment was a 30 day late in October of 2011. I have sent a ton of goodwill letters and emails to executives but they refuse to remove the lates or tradeline from my report. The loan is from Orange County Teachers Federal Credit Union if anyone has any tips.

My current scores from myFico are 649 TransUnion and 661 Equifax. They were 680 but due to the utilization below they went down last month.

I opened up 3 secured credit cards-

Capital One- Opened 03/12 with a 3k limit. I received an increase without asking of 300 dollars about 60 days ago so now the limit is 3,300. The balance on my report shows $1,300 dollars but I have paid it in full so just waiting for my reports to update.

Bank of America- Opened 05/12 with a $1,200 dollar limit. Current balance is 0.

Applied Bank- Opened 05/12 with a $1,200 dollar limit. Current balance is 0.

AMEX- My friend opened up the account in 06/12 and added me on as an AU but I have since told him to remove me since it was new and I wasn't picking up any history and it was bringing down my AAoA. Amex has updated and removed me but it's still on my report but just states terminated. Should I call AMEX and the CRA and tell them to delete it?

I opened 2 secured personal installment loans on 03/12 for 1,000 each to help out my installment accounts.

Auto Loans

I got a new car on 05/12 and the loan was for 33k which I was shocked I got approved but at a 24% interest rate. I just paid off the loan in full last month. Currently shows a 0 balance on EQ but still 15k on TU. So waiting for that to update.

I got 2 new vehicles that I had a friend co-sign on 07/2012. One was for 98,000 and the other was for 78,000. My friend called me last week and wanted me to refinance the loans and get them out of his name as he is trying to get a new house. I attempted to refinance them yesterday but was denied so I paid them both in full yesterday because he needed them out of his name.

I have 7 inquiries over the past 2 years reporting on my EQ report and 10 on my transunion.

My AAoA on is 1 year and oldest account is 6 and a half years old.

So above is pretty pertainent info but if you need anymore please let me know.

Couple Questions:

1.) Should I apply for any prime cards once my reports update this month and my score is back over 680? Or should I deposit more on my secured cards so they show higher credit limits.

2.) On the 3 Auto Loans this year should I ask the lender to delete the tradeline since I have paid them all in full and they were only open for a couple of months since it is hurting my AAoA? Not sure on this one.

3.) Should I get AMEX to delete the tradeline since I took myself off of it?

4.) Any other TIPS or ideas???

Thanks!

Re: Help me prepare for Mortgage App

beb86 — Mon, 12 Nov 2012 05:41:19 GMT

@spudbro wrote:
So I need some input/recommendations on getting my credit score up in the next 6 months. I'm trying to get my credit score above 720 so I can get get approved for a mortgage. I'm not sure if this is the appropriate forum to be posting this in?Mod's please move is this is not the appropriate section.

So in March of 2012 I decided it was time to start working on my credit and cleaning up all of the damage I did. I pulled my credit and had a score of 460 and about 13 collections. I immediately started working on those and have since got all of those deleted from my reports. The only (a big one) negative item left is late payments on an auto loan I had. The auto loan is now paid off and the last late payment was a 30 day late in October of 2011. I have sent a ton of goodwill letters and emails to executives but they refuse to remove the lates or tradeline from my report. The loan is from Orange County Teachers Federal Credit Union if anyone has any tips.

My current scores from myFico are 649 TransUnion and 661 Equifax. They were 680 but due to the utilization below they went down last month.

I opened up 3 secured credit cards-
Capital One- Opened 03/12 with a 3k limit. I received an increase without asking of 300 dollars about 60 days ago so now the limit is 3,300. The balance on my report shows $1,300 dollars but I have paid it in full so just waiting for my reports to update.

Bank of America- Opened 05/12 with a $1,200 dollar limit. Current balance is 0.

Applied Bank- Opened 05/12 with a $1,200 dollar limit. Current balance is 0.

AMEX- My friend opened up the account in 06/12 and added me on as an AU but I have since told him to remove me since it was new and I wasn't picking up any history and it was bringing down my AAoA. Amex has updated and removed me but it's still on my report but just states terminated. Should I call AMEX and the CRA and tell them to delete it?

I opened 2 secured personal installment loans on 03/12 for 1,000 each to help out my installment accounts.

Auto Loans
I got a new car on 05/12 and the loan was for 33k which I was shocked I got approved but at a 24% interest rate. I just paid off the loan in full last month. Currently shows a 0 balance on EQ but still 15k on TU. So waiting for that to update.

I got 2 new vehicles that I had a friend co-sign on 07/2012. One was for 98,000 and the other was for 78,000. My friend called me last week and wanted me to refinance the loans and get them out of his name as he is trying to get a new house. I attempted to refinance them yesterday but was denied so I paid them both in full yesterday because he needed them out of his name.

I have 7 inquiries over the past 2 years reporting on my EQ report and 10 on my transunion.

My AAoA on is 1 year and oldest account is 6 and a half years old.

So above is pretty pertainent info but if you need anymore please let me know.

Couple Questions:

1.) Should I apply for any prime cards once my reports update this month and my score is back over 680? Or should I deposit more on my secured cards so they show higher credit limits.

2.) On the 3 Auto Loans this year should I ask the lender to delete the tradeline since I have paid them all in full and they were only open for a couple of months since it is hurting my AAoA? Not sure on this one.

3.) Should I get AMEX to delete the tradeline since I took myself off of it?

4.) Any other TIPS or ideas???

Thanks!

Is this real? Teachers CU, 209k worth of car loans paid off in 6 months, low CS, wanting to app for a mortgage?????

Re: Help me prepare for Mortgage App

spudbro — Mon, 12 Nov 2012 06:05:32 GMT

Not sure what is so confusing for you. 680 credit score trying to prepare to app in 6 months? If you'd like to troll please feel free to move on to another post.

Re: Help me prepare for Mortgage App

beb86 — Mon, 12 Nov 2012 06:08:49 GMT

@spudbro wrote:
Not sure what is so confusing for you. 680 credit score trying to prepare to app in 6 months? If you'd like to troll please feel free to move on to another post.

My intent was not to troll you it was to point out things in your post that really dont make any sense.

Re: Help me prepare for Mortgage App

spudbro — Mon, 12 Nov 2012 06:18:40 GMT

What doesn't make sense? I had auto loans and paid them off. I need a 720 FICO because I'm not trying to get a FHA loan for 417k, im wanting a jumbo mortagage and prefer to get this loan as oppose to have to pay cash. You are so focused on the amounts of the loan I paid off that you neglect to focus on the entire post My credit history is limited because 1.) I paid cash for most stuff and 2.) My business has grown significantly over the past 2 years.

If your interested in answering or helping with recommendations I'd appreciate it, if not then don't post.

@beb86 wrote:
@spudbro wrote:
Not sure what is so confusing for you. 680 credit score trying to prepare to app in 6 months? If you'd like to troll please feel free to move on to another post.
My intent was not to troll you it was to point out things in your post that really dont make any sense.

Re: Help me prepare for Mortgage App

ceejx — Mon, 12 Nov 2012 06:45:45 GMT

@spudbro wrote:
What doesn't make sense? I had auto loans and paid them off. I need a 720 FICO because I'm not trying to get a FHA loan for 417k, im wanting a jumbo mortagage and prefer to get this loan as oppose to have to pay cash. You are so focused on the amounts of the loan I paid off that you neglect to focus on the entire post My credit history is limited because 1.) I paid cash for most stuff and 2.) My business has grown significantly over the past 2 years.

If your interested in answering or helping with recommendations I'd appreciate it, if not then don't post.

great way to get help on a forum

Re: Help me prepare for Mortgage App

spudbro — Mon, 12 Nov 2012 06:51:27 GMT

@seigex wrote:
@spudbro wrote:
What doesn't make sense? I had auto loans and paid them off. I need a 720 FICO because I'm not trying to get a FHA loan for 417k, im wanting a jumbo mortagage and prefer to get this loan as oppose to have to pay cash. You are so focused on the amounts of the loan I paid off that you neglect to focus on the entire post My credit history is limited because 1.) I paid cash for most stuff and 2.) My business has grown significantly over the past 2 years.

If your interested in answering or helping with recommendations I'd appreciate it, if not then don't post.
great way to get help on a forum

ya when someone post in 2 diff threads with the same trolling type comment I respond that way.

Re: Help me prepare for Mortgage App

ceejx — Mon, 12 Nov 2012 06:59:01 GMT

@spudbro wrote:
@seigex wrote:
@spudbro wrote:
What doesn't make sense? I had auto loans and paid them off. I need a 720 FICO because I'm not trying to get a FHA loan for 417k, im wanting a jumbo mortagage and prefer to get this loan as oppose to have to pay cash. You are so focused on the amounts of the loan I paid off that you neglect to focus on the entire post My credit history is limited because 1.) I paid cash for most stuff and 2.) My business has grown significantly over the past 2 years.

If your interested in answering or helping with recommendations I'd appreciate it, if not then don't post.
great way to get help on a forum
ya when someone post in 2 diff threads with the same trolling type comment I respond that way.

taking it a bit too personal/serious... but whatever floats your boat... as said on The Shark Tank... I'm out...

Re: Help me prepare for Mortgage App

spudbro — Mon, 12 Nov 2012 07:05:16 GMT

@seigex wrote:
@spudbro wrote:
@seigex wrote:
@spudbro wrote:
What doesn't make sense? I had auto loans and paid them off. I need a 720 FICO because I'm not trying to get a FHA loan for 417k, im wanting a jumbo mortagage and prefer to get this loan as oppose to have to pay cash. You are so focused on the amounts of the loan I paid off that you neglect to focus on the entire post My credit history is limited because 1.) I paid cash for most stuff and 2.) My business has grown significantly over the past 2 years.

If your interested in answering or helping with recommendations I'd appreciate it, if not then don't post.
great way to get help on a forum
ya when someone post in 2 diff threads with the same trolling type comment I respond that way.

taking it a bit too personal/serious... but whatever floats your boat... as said on The Shark Tank... I'm out...

Considering you'll never be in a position of a "shark" in life you should enjoy that there are forums that exist for you to use this.

Re: Help me prepare for Mortgage App

ceejx — Mon, 12 Nov 2012 07:08:17 GMT

@spudbro wrote:
@seigex wrote:
@spudbro wrote:
@seigex wrote:
@spudbro wrote:
What doesn't make sense? I had auto loans and paid them off. I need a 720 FICO because I'm not trying to get a FHA loan for 417k, im wanting a jumbo mortagage and prefer to get this loan as oppose to have to pay cash. You are so focused on the amounts of the loan I paid off that you neglect to focus on the entire post My credit history is limited because 1.) I paid cash for most stuff and 2.) My business has grown significantly over the past 2 years.

If your interested in answering or helping with recommendations I'd appreciate it, if not then don't post.
great way to get help on a forum
ya when someone post in 2 diff threads with the same trolling type comment I respond that way.

taking it a bit too personal/serious... but whatever floats your boat... as said on The Shark Tank... I'm out...
Considering you'll never be in a position of a "shark" in life you should enjoy that there are forums that exist for you to use this.

right.. and you can afford to pay off $209k worth of vehicles but are still getting 24% interest rate and are scared you won't be approved for a mortgage,.. what a winner

Re: Help me prepare for Mortgage App

spudbro — Mon, 12 Nov 2012 07:12:56 GMT

@seigex wrote:
@spudbro wrote:
@seigex wrote:
@spudbro wrote:
@seigex wrote:
@spudbro wrote:
What doesn't make sense? I had auto loans and paid them off. I need a 720 FICO because I'm not trying to get a FHA loan for 417k, im wanting a jumbo mortagage and prefer to get this loan as oppose to have to pay cash. You are so focused on the amounts of the loan I paid off that you neglect to focus on the entire post My credit history is limited because 1.) I paid cash for most stuff and 2.) My business has grown significantly over the past 2 years.

If your interested in answering or helping with recommendations I'd appreciate it, if not then don't post.
great way to get help on a forum
ya when someone post in 2 diff threads with the same trolling type comment I respond that way.

taking it a bit too personal/serious... but whatever floats your boat... as said on The Shark Tank... I'm out...
Considering you'll never be in a position of a "shark" in life you should enjoy that there are forums that exist for you to use this.

right.. and you can afford to pay off $209k worth of vehicles but are still getting 24% interest rate and are scared you won't be approved for a mortgage,.. what a winner

I got that rate with a 460 fico and now im at a 680. Also not scared to not get a mortgage please post where I stated that. I am interested in the long term aspects of having a mortgage on my credit and the benefits it would bring 5years down the road.. I can sit here and argue with you but not intereste any longer. You win.

Re: Help me prepare for Mortgage App

ceejx — Mon, 12 Nov 2012 07:15:03 GMT

@spudbro wrote:
@seigex wrote:
@spudbro wrote:
@seigex wrote:
@spudbro wrote:
@seigex wrote:
@spudbro wrote:
What doesn't make sense? I had auto loans and paid them off. I need a 720 FICO because I'm not trying to get a FHA loan for 417k, im wanting a jumbo mortagage and prefer to get this loan as oppose to have to pay cash. You are so focused on the amounts of the loan I paid off that you neglect to focus on the entire post My credit history is limited because 1.) I paid cash for most stuff and 2.) My business has grown significantly over the past 2 years.

If your interested in answering or helping with recommendations I'd appreciate it, if not then don't post.
great way to get help on a forum
ya when someone post in 2 diff threads with the same trolling type comment I respond that way.

taking it a bit too personal/serious... but whatever floats your boat... as said on The Shark Tank... I'm out...
Considering you'll never be in a position of a "shark" in life you should enjoy that there are forums that exist for you to use this.

right.. and you can afford to pay off $209k worth of vehicles but are still getting 24% interest rate and are scared you won't be approved for a mortgage,.. what a winner
I got that rate with a 460 fico and now im at a 680. Also not scared to not get a mortgage please post where I stated that. I am interested in the long term aspects of having a mortgage on my credit and the benefits it would bring 5years down the road.. I can sit here and argue with you but not intereste any longer. You win.

sorry wasn't interested in reading your post so guess I missed the mark....

Re: Help me prepare for Mortgage App

RashShakur — Mon, 12 Nov 2012 20:46:24 GMT

Re: Help me prepare for Mortgage App

tooleman694 — Mon, 12 Nov 2012 21:49:01 GMT

If you are at a 680 with low CC util, I think you will need to hang out for 1 to 2 years to get over a 720. It just takes time.

Easy to get to 680, hard to get above it without time.

The only thing I would suggest if you really want to buy a home sooner, I would cash out your cars and us it as down payment to not go Jumbo if that is possible. Then go and buy a couple more cars =)

Re: Help me prepare for Mortgage App

Anonymous — Tue, 13 Nov 2012 08:05:06 GMT

There are hard money lenders out there if you put maybe 50% down with last 2 years of tax returns.... Your chances would be high getting approved for a conventional.

Re: Help me prepare for Mortgage App

Shogun — Wed, 14 Nov 2012 04:53:35 GMT

Starting to get back on topic, just a reminder from your friendly neighborhood Mod. Play Nice!!!!

Re: Help me prepare for Mortgage App

llecs — Wed, 14 Nov 2012 15:11:07 GMT

Ditto...play nice.

On the topic of OP's org. post, I'd do the following:

1) I would not apply before July of next year. The accounts are too new and you'll see steady gains as they reach and hit the one-year mark. And I'd be sure to not apply for anything at all before then. Waiting might add an extra 10-20+ pts between now and then.

2) Increasing your CLs will not increase your FICO score if you are paying your cards off. I'd skip that.

3) Your auto loans are factored into AAoA. I'd let it be.

4) What's the open date on the Amex? Amex backdates and if your friend had an Amex before, then there's an outside chance it shows an older date. If not, you can dispute as "not mine" since it isn't yours.

5) I'd stop GWing Chase. Further attempts might work (they are open to GWs...no so much via the exec route), but there's an outside chance they'll delete. You need that history. FICO largely stops scoring 30 day-lates after 2 years.

6) Opt out from all 3 CRAs.

7) If self-employed, make sure you pay yourself a salary. I don't know your biz structure, but lenders will look at the net income only on your 1040. If you are claiming a herd of deductions, then that can hurt if not on salary.

8) Make sure you clearly separate biz expenses away from any personal expenses via your bank accts.

Re: Help me prepare for Mortgage App

Anonymous — Thu, 15 Nov 2012 23:39:00 GMT

Re: Help me prepare for Mortgage App

spudbro — Sat, 17 Nov 2012 06:04:41 GMT

@llecs wrote:
Ditto...play nice.

On the topic of OP's org. post, I'd do the following:

1) I would not apply before July of next year. The accounts are too new and you'll see steady gains as they reach and hit the one-year mark. And I'd be sure to not apply for anything at all before then. Waiting might add an extra 10-20+ pts between now and then.

I actually decided to go with a hard money type loan I found and was approved pretty easily. I have to put 35% down but at least it get's me in the house I love and I will be able to get the mortgage I'm looking for MID to next year. I app'd for an AMEX gold rewards card today and was approved as well as a chase preffered and was approved for a 5k limit. I'd rather take the app hit now and in 6-12 months from today I'm sure it will rebound.

2) Increasing your CLs will not increase your FICO score if you are paying your cards off. I'd skip that.

Okay. Ty for the tip

3) Your auto loans are factored into AAoA. I'd let it be.

4) What's the open date on the Amex? Amex backdates and if your friend had an Amex before, then there's an outside chance it shows an older date. If not, you can dispute as "not mine" since it isn't yours.

Open date is 06-2012 and he didn't have an AMEX prior so I disputed today to have it removed.

5) I'd stop GWing Chase. Further attempts might work (they are open to GWs...no so much via the exec route), but there's an outside chance they'll delete. You need that history. FICO largely stops scoring 30 day-lates after 2 years.

Okay I will just let this be.

6) Opt out from all 3 CRAs.

What does this do?

7) If self-employed, make sure you pay yourself a salary. I don't know your biz structure, but lenders will look at the net income only on your 1040. If you are claiming a herd of deductions, then that can hurt if not on salary.

I'm self employed and definitely learned this after filing my taxes last year and writing everything possible off. I now have myself on a salary this year plus my 1040.

8) Make sure you clearly separate biz expenses away from any personal expenses via your bank accts. I definitely do this.

Thanks for the help!

Re: Help me prepare for Mortgage App

spudbro — Sat, 17 Nov 2012 06:06:28 GMT

@Anonymous wrote:
There are hard money lenders out there if you put maybe 50% down with last 2 years of tax returns.... Your chances would be high getting approved for a conventional.

I actually went this route for now and the approval process was really simple and I got approved with 35% down.