@Hut1 wrote:
Georgia can be a bit expensive depending on where you live. I only asked to get an idea of cost of living.
So, this would be my very humble opinion on my experience of how to stretch a dollar to accomplish a goal. Firstly, no one should rush a mortgage app. The difference a 0.5% APR reduction can make based off your score can mean the savings of tens of thousands of dollars over the life of your loan. Secondly, while VA loans have more lenient requirements for approvals, your score can still dictate how much you are approved for and even though there is not necessarily a minimum score, most lenders would still like to see at least a 620+.
If I were in your position, I would slow down and focus on one item at a time. Owning your own home is a 'want', so there's no timeline you have to follow or countdown you have to beat. Apply when you are ready and in the best posssible postion for a favorable outcome.
Here are my suggestions:
- Reduce your monthly outgoing expenses by
- renting a cheap apartment that covers your bare minimum needs. (ie: an extra br/ba is nice to have, but not financially prudent)
- cancel cable/gym memberships/subscription services, move phone plans to prepaid like Virgin mobile $35/mo unlimited plan.
- Create a meal plan and eat at home and take pre-prepped lunches to work.
- List out all collections by either writing them on a poster, creating an excel sheet, etc.. (this starts the reward center of the brain working)
- Contact each collector to discuss a pay for delete option. If they agree, get it in writing before sending payment.
- Start with your pay for delete accts first and pay them off with all the money you're saving when you downgraded your expenses! Since they will be deleted once paid, you'll see immediate score increases.
There's no magical button any of us can push to make this process move quickly, so I hope you and your spouse have patience as a virtue. Just try to remain steadfast and keep chugging away.
I'm also interested to hear others opinions as well. Good luck to you both!
Agree 1000 percent. There's no market in Georgia that isn't cooling. The bubble in the Atlanta area drove prices up unsustainably for the incomes in the region, which are not comparably high. I say, wait a year or two and Dave Ramsey your life. You CAN get your scores in an excellent range during that time, prices aren't going to go up significantly if at all and, as we are on the cusp of recession, interest rates will remain low with some peaks, but being in a better position will likely save you 1% or more over the life of the loan. You're not in a good position now and considering the chargeoffs etc, it's unlikely you have significant savings or reserves.
If you're a person who likes to have a plan laid out for you, look at the NACA threads (there are a ton of hoops, but they will save you tons of money on the cost of the loan AND if you're organized, you can get through the process in 12 months or less).
Good luck.
