topic Re: Mortgage for First Time Buyer in Mortgage Loans

Mortgage for First Time Buyer

camera_jen — Mon, 17 Aug 2015 04:10:28 GMT

I'm getting really discouraged after talking with a loan officer at my credit union. I've done a massive amount of credit repair following a divorce and identity theft, bringing my FICO up over 150 points in the last 6 months. I opened several lines of credit, both charge and credit cards, all at the same time so that they would age in a way that would be beneficial at the time I'm going to try to get financing. But they will not finance me, even with a credit score of 700+ because I opened several lines of credit at the same time.

I just don't get it. I've had the same employer for 3 years, make a decent salary, and my boss has no plans to get rid of me anytime in the near future nor do I have plans to leave. I have virtually no debt. I've lived in the same apartment for 4 years and never been late on my rent. I will have a decent down payment. There are NO negatives on my credit. So now I'm being told I'm not a candidate for a loan at the credit union, but will likely find financing somewhere at a interest rate that makes it basically unaffordable.

Moving when my lease is up is really important because I live in a somewhat big city and any move will most likely change where my son goes to school so I want to move between elementary and middle school June 2016. I have put off major needed purchases because buying a house at this particular time is so important. I can always look for a cheaper car but moving to the ghetto isn't an option. I'm driving a paid off car that is a piece of junk, my apartment is far from all my son's friends and activities but it's cheap (rentals here are 3x the cost of a mortgage on average), I'm putting off physical therapy, all to save money for a house that looks like I won't be able to buy?

Is my credit union being ridiculous? Or am I going to have to finance at an interest rate that makes my mortgage too expensive? I'm actually ready to just give up and relocate cities if I can't get a mortgage to move to a decent neighborhood.

Re: Mortgage for First Time Buyer

Anonymous — Mon, 17 Aug 2015 04:29:26 GMT

Seems ridiculous and annoying to me. Not sure what rate they were offering but I'm sure you could find likewise somewhere else. Have you tried?

Re: Mortgage for First Time Buyer

camera_jen — Mon, 17 Aug 2015 04:35:53 GMT

@Anonymous wrote:
Seems ridiculous and annoying to me. Not sure what rate they were offering but I'm sure you could find likewise somewhere else. Have you tried?

Not yet. My lease is up in June of 2016 so I have a while, I just had them pull my credit to check and get ahead of any issues they may have. The past issue was I didn't have enough credit. Now it's that I opened multiple credit lines in 6 months. They didn't even offer an interest rate, just flat out said that based on what they see they will not offer me financing at all. And it seems inconsistent because I know someone who was financed through them and that person is a train wreck.

Re: Mortgage for First Time Buyer

Anonymous — Mon, 17 Aug 2015 04:46:51 GMT

@camera_jen wrote:
@Anonymous wrote:
Seems ridiculous and annoying to me. Not sure what rate they were offering but I'm sure you could find likewise somewhere else. Have you tried?
Not yet. My lease is up in June of 2016 so I have a while, I just had them pull my credit to check and get ahead of any issues they may have. The past issue was I didn't have enough credit. Now it's that I opened multiple credit lines in 6 months. They didn't even offer an interest rate, just flat out said that based on what they see they will not offer me financing at all. And it seems inconsistent because I know someone who was financed through them and that person is a train wreck.

In regards to trainwrecks, yeah it blows my mind when things like that happen. I see it all the time with credit cards.

I would shop around quite a bit and see what you can come up with. What rate do you require for a comfortable payment?

Re: Mortgage for First Time Buyer

Revelate — Mon, 17 Aug 2015 08:26:36 GMT

Eh, looking at your file now is different than looking at your file 9 months from now give or take.

Secondly the mortgage market is all pretty much same interest rates with some minor exceptions; why would you expect you'd get a much worse deal somewhere else?

Take everything the LO said with a grain of salt. How many accounts and when did you open them out of curiosity?

Re: Mortgage for First Time Buyer

Anonymous — Mon, 17 Aug 2015 21:05:30 GMT

@camera_jen wrote:
I'm getting really discouraged after talking with a loan officer at my credit union. I've done a massive amount of credit repair following a divorce and identity theft, bringing my FICO up over 150 points in the last 6 months. I opened several lines of credit, both charge and credit cards, all at the same time so that they would age in a way that would be beneficial at the time I'm going to try to get financing. But they will not finance me, even with a credit score of 700+ because I opened several lines of credit at the same time.

I just don't get it. I've had the same employer for 3 years, make a decent salary, and my boss has no plans to get rid of me anytime in the near future nor do I have plans to leave. I have virtually no debt. I've lived in the same apartment for 4 years and never been late on my rent. I will have a decent down payment. There are NO negatives on my credit. So now I'm being told I'm not a candidate for a loan at the credit union, but will likely find financing somewhere at a interest rate that makes it basically unaffordable.

Moving when my lease is up is really important because I live in a somewhat big city and any move will most likely change where my son goes to school so I want to move between elementary and middle school June 2016. I have put off major needed purchases because buying a house at this particular time is so important. I can always look for a cheaper car but moving to the ghetto isn't an option. I'm driving a paid off car that is a piece of junk, my apartment is far from all my son's friends and activities but it's cheap (rentals here are 3x the cost of a mortgage on average), I'm putting off physical therapy, all to save money for a house that looks like I won't be able to buy?

Is my credit union being ridiculous? Or am I going to have to finance at an interest rate that makes my mortgage too expensive? I'm actually ready to just give up and relocate cities if I can't get a mortgage to move to a decent neighborhood.

I would definitely try a new lender. What the CU told you isn't making much sense. There are lenders out there that do not have tradeline requirements.