Advice on Getting a Mortgage

[John060675]

Hi all,

I am looking to buy my first house in just over a year.  Here is my information:

EQ:  610

TU:  640

EX:  648

All of my accounts are current, but I have a couple old items that "charge off's" (7 years old and 4 years old) , one colleciton item that will drop off in January 2008 on EQ, and one 60 day late on all 3 agencies from 7 months ago.  I have sent GW letters to beg for mercy with all of these items, and I will continue to send them until they are hopefully lifted. 

I currently have 2 revolving accounts and 1 car loan.  The credit card accounts have 60% utilization reported, but this will be 0% by next month.

My question is whether I should open 1 or 2 more credit card accounts, and not use them.  I have read some threads that stated that it helps to have 3 or 4 credit cards open to bump up a score.  Also, since I am looking in over one year I believe the "new" credit staus will be lifted on these new accounts.

Any other information or tips would help.  I really need to work hard to get my scores over 720. Is this realistic, or am I just wishfully thinking?

[Tuscani]

You are close.. Getting your util at 0% should skyrocket your scores. I wouldn't open any new accounts, instead keep focusing on getting the baddies removed.

[VLGaffEsq]

I think your idea and goal are actually quite realistic!  While you want to keep those inquiries to a bare minimum (especially just before going for a mortgage or refi), I think you would be well advised to apply for at least 2 more credit cards and possibly even a long term installment loan to beef up your credit report, and thereby raising your FICO scores. (CRS's and lenders like to see a "mixture" of credit).  Also, in anticipation of obtaining a mortgage down the road, I would look into membership of a credit union so you can cultivate a business relationship.  Credit unions tend to have lower interest rates for their members...  Bottom line, I would shoot for FICO scores of 750, and when it comes time to get a mortgage, YOU will be sitting in the catbird seat.

[Anonymous]

I'm not an expert, but when I was going through the process, I was told do NOT open any new accounts.  Even with no balance, it brings down the average age of accounts.  I had two cc's (Visa/MC) and was told two is a good number.  I will say that they liked seeing a good balance of different types of credit(installment, revolving, etc), which it sounds like you have. 

Then again, if you're a year away from starting the process, it may be enough time will pass between now and then that they aren't considered new, but I was also told having accounts in good standing for 3 years or more is ideal.

Hope it helps...

[Anonymous]

100% RIGHT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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Tuscani wrote:

You are close.. Getting your util at 0% should skyrocket your scores. I wouldn't open any new accounts, instead keep focusing on getting the baddies removed.

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