1st time mortgage loan info

[Anonymous]

Hello guys,

I’m looking to get into the ground work of getting a mortgage in the next three years. My husband and I both work full time and have no collections or late payments. We both have a good amount of credit card debt and wanted to see what tips you guys have to get started where our credit files need to be.

His score is below 600
Mine is below 700
We both are in deferment for our student loans I’m currently getting my bachelors and he is in graduate work.

I have a personal loan as well that I got for prior debt. It’s in year two of five.

I know to pay down the balances on my loan and our credits cards is key of course.

Any other tips?

[CreditInspired]

DH scores are pretty low for no baddies. May want to get full credit reports from www.annualcreditreport.com to see what’s holding his scores down and get anything inaccurate corrected. When you apply for a mortgage, the lowest middle score (which is his) will be the one used.

And maybe follow the AZEO method (all CC balances at zero except one). And that one at less than 8.9%.

And since you’re giving yourself 3 years, it’s definitely doable.

[Anonymous]

I downloaded that report for myself curious as to my score. I saw an enormous amount of soft pulls. Some hard pulls as well. A big part of his was when his mortgage was refinanced from his ex wife. She was supposed to refinance 5 years ago but just did it last year. So that was a big hit, he has high credit card debt and a car loan. He just paid off a personal loan in full. But I think the biggest is his student loans which is close to $100,000 and they are in deferment and he’s been in school on and off for th last 20 some years. So his we need to work on more than my own.

Thank you so much for the tips.

[Girlzilla88]

From what I read the debt is the only main things holding you back I wouldn't add anything or remove anything only work on getting the Baddies removed and also keep your Utilization as low as you can if possible under 20%, with the AZEO part it does work also if all your cards together equal to 8.9% for instance if you have 3 cards you want to do one at 3%, one at 3% and one at 2.9% or lower this method also helps to have higher boosts and if you can I know this part will be even harder but get it all down to where you can have your payment reflect 0 then put a few dollars to reflect on your statement as long as they are 5 dollars and above and below the 8.9% as mentioned before collectively!   Good Luck that is a lot of debt but sounds like it will be worth it when everything is said and done!    

[Anonymous]

Thank you for your response. My biggest concern is to make my monthly payments on my loan  and get my credit card dent down. I am at 24% utilization but my recent apps and CLI have not reflected so it is more like 18% which is around $18k. He will be working on that and by the time we are ready to buy his car loan with be done as well as my personal loan so just trucking away and luckily neither one of us have baddies. 

[Girlzilla88]

Sometimes it does take a while to reflect so that part is ok and try not to remove ones that will hurt more than help your score if removing the car loan will lower your AAoA significantly I would keep it on and just get it as low as you can but you guys aren't far off so that is good and you sound like you have a plan already as well

[Anonymous]

We have had the car loan on since 2015 but he has a lot of accounts much older which helps. We have another $10,000 to go and we are not planning on early payoff. 

[Girlzilla88]

Ok good