topic Re: Help with preparing to buy a home with the best rates in Mortgage Loans

Help with preparing to buy a home with the best rates

Anonymous — Tue, 10 Dec 2019 21:51:12 GMT

Hi! I am new to the my fico forums and I am currently in the process of rebuilding my credit. I started off with the scores of 504, 507 and 506. I am currently at 628, 682 and 728. I opened up two new credit cards this month and I’m deciding on which secure card to get so that I can have three cards total and can implement AZEO. I don’t want to get another HI so I thought of Open Sky secured card. I currently have one installment Student now which is in good standing with a IBR repayment plan. Could you please help me with tips and advice to get my scores up within the next six months so that I will be able to apply for a mortgage with a good rate?

Re: Help with preparing to buy a home with the best rates

Anonymous — Thu, 12 Dec 2019 12:54:55 GMT

Building good credit takes time. However, knowing where to begin and the proper steps to take can be a key component in reaching your financial goals.

Tips for Building & Maintaining Good Credit

Monitor your credit. Download your free annual report at www.annualcreditreport.com
Pay all loans on time, every time
Don’t max out your credit limits. Experts advise utilizing no more than 30% of your limit
Take appropriate steps to correct any issues on your credit report. Learn how to dispute an issue here

Re: Help with preparing to buy a home with the best rates

Anonymous — Thu, 12 Dec 2019 13:14:08 GMT

Thanks for the tips! Appreciate it 😊 Do you have any knowledge about Azeo. I only have one negative item on my EQ report which I disputed but came back verified but it reaches it SOL next year in 2/2020 so I’m hoping I will see an increase in my score

Re: Help with preparing to buy a home with the best rates

355F1 — Thu, 12 Dec 2019 14:57:38 GMT

Spend all of your free time in all of the FICO forums for the best month or so. That’s the best way to learn.

Also, you’ll need to pay for your MORTGAGE scores from myFICO.com....they will be different than whatever scores you’ve posted here.

Re: Help with preparing to buy a home with the best rates

NC_Mtg_Loaner — Thu, 12 Dec 2019 15:23:43 GMT

Without checking sources, 682 is better than half of America and is likely to get you an extremely competitive rate for your mortgage loan. Just keep on doing what you are doing by paying bills on time every month and managing those balances properly and you'll be fine.

Just compare APR offers from a few lenders that you can speak with and find one (loan officer) that you can trust and you should be good to go.

Congrats!

Re: Help with preparing to buy a home with the best rates

Anonymous — Thu, 12 Dec 2019 17:44:08 GMT

Thanks!!!! Do you know if my inquiries will be an issue when I apply for the loan since they will only be 6 months when I apply? Of course keeping payments on time? Also when accounts are removed from credit reports but are still within SOL. Ca they be seen by loan officers when they pull your credit?

Re: Help with preparing to buy a home with the best rates

Nomad3 — Fri, 13 Dec 2019 12:46:53 GMT

Im still trying to figure out AZEO myself, so I can't speak to that. Regarding the derogs though, SOL depending on state is usually 4 years. SOL is when they can no longer sue you for payment. However, derogs show on your report for 7 years from the incident even if they are outside of SOL(except bankruptcy which reports for 10 years i believe). I'm in a similar boat, trying to garden until my only derog falls off next year giving me the best possible chance. If the derog is still reporting it will make a huge difference in what rate/total loan you will be able to get even if your most recent history is good, at least thats my understanding.

Inquiries can hurt, but if the last one you had was 6mo+ old you should be alright. Just don't open anything or request CLI's until well after you close on the house. (Also note that opening new cards immediately after closing will look risky to the new card issuer and they might reject or give you a low limit)

Re: Help with preparing to buy a home with the best rates

Anonymous — Fri, 13 Dec 2019 12:55:04 GMT

I just opened the 2 cards I have so they won’t reach 6 months until May/June of next year I think that’s why he said apply around then but even it was it earlier how could it hurt my chances if I was approved and it shows good payment history? Also I live in Pa so our SOL is 7 yrs. After it falls off the report and the LO pulls my report for the mortgage will they still be able to see it?

Re: Help with preparing to buy a home with the best rates

Nomad3 — Fri, 13 Dec 2019 13:05:58 GMT

No they shouldn't be able to see it, the 7 year drop off is law. Just make sure you get your full 3B report before you apply to make sure that its updated and been removed. They should be good about getting this removed timely, if not you can dispute it before applying.

If the 2 cards you just opened are your only cards though and they will only have 6mo of payment history this might hurt. I've heard that the most recent 2 years are the most important, if you only have payment history for 1/4th of that time frame. This is a similar situation to where I am, limited history and if I start doing AZEO it wouldn't count as payment history because there was nothing to pay?

Hopefully someone else can shed more light on that part, because when it comes to AZEO and limited history I'm still lost.

Re: Help with preparing to buy a home with the best rates

Anonymous — Fri, 13 Dec 2019 20:09:55 GMT

Yes these are my only 2 cards but my student loans have payment history since 2011 so it’s been 8 yrs showing on my report for oldest account. I think that’s why he said he’ll be able to use that but your right about the cards having to be open for at least 2 yrs to be included. I’m still a little confused about Azeo myself. Like could I gain points with the 2 cards I have now or I have to have a minimum of 3? Thanks for sharing the info you do know with me. Hopefully someone can clear things up for us regarding “Azeo” ☺️