Need advice

[Queenof3kings]

Looking for some direction. Want to buy a home asap. Went to a broker who wasn’t very responsive or helpful. First thing she said was she is working many loans so her response time maybe bad. She was right. My scores are 634, 609, 608. My last late was 10/18 due to a messy messy divorce and a few collections mostly medical. Income is 200k been on my job 11 years. I have 50k down payment. She finally recommended I do a “my jewelry club” account to boost score which I did on 5/15 but it has not reported yet. I have two capital one cards and an AU on my dad’s Amex. Cards are at 8%. 20k in Student loans which are in repayment and 19k auto loan which is the one that had the last late because we were fighting over the car for a while. My lease is up 8/1 and I’m tired of paying $3k a month in rent. I found the perfect house it’s 450k. I don’t want to use the broker but now I’m scared to have multiple people run my credit. Not sure what to do.

[Mortgage-Specialist]

The majority of lenders do not abide by this principal, but whenever your last late payment and last collection is over 12 months old, you should not be turned down for credit issues when it comes to (FHA, VA and USDA loans)

Just closed a a loan with a mid score of 577. Because no lates in past 12 months and debt ratio was in line - loan was approved and closed with a manual underwrite. This was not a special exception, this is standard (with one of my lending partners)

[homeloanexpert]

Hello,

Sorry to hear about your negative experience with the Mortgage Broker. I can assure many of us Loan Officers are busy but try really hard to be respectful and not turn business away. But her poor attitude and not exercising good business practices, will mostly affect her book of business. That aside, your scores are on the low side so most likely you the AUS (automated underwriting system) will issue a Refer/Eligible. Meaning your loan will be downgraded to Manual and have more limitations. But on the other side, I have been pleasantly surprised to see the AUS issue an Approve/Eligible even with lower scores and recent lates and collections like you. 

Your last late was 8 months ago, and you mentioned that you had several new collections (mostly medical which we no longer factor in) which will certainly weight in. But again with higher assets, I have seen the AUS still issue an approval. With people with your similar credit woes, I generally tell them to make sure all credit card utilization is below 10% (never $0) and if possible be added as authorized user or apply for a new fast reporting credit card account (there are several that report in as short as 2 weeks) in order to get your scores over the 620 threshold. This will ensure that best possible chances of getting an AUS A/E. Hope this helps.

Best wishes

[AZEsq]

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@Queenof3kings wrote:
Looking for some direction. Want to buy a home asap. Went to a broker who wasn’t very responsive or helpful. First thing she said was she is working many loans so her response time maybe bad. She was right. My scores are 634, 609, 608. My last late was 10/18 due to a messy messy divorce and a few collections mostly medical. Income is 200k been on my job 11 years. I have 50k down payment. She finally recommended I do a “my jewelry club” account to boost score which I did on 5/15 but it has not reported yet. I have two capital one cards and an AU on my dad’s Amex. Cards are at 8%. 20k in Student loans which are in repayment and 19k auto loan which is the one that had the last late because we were fighting over the car for a while. My lease is up 8/1 and I’m tired of paying $3k a month in rent. I found the perfect house it’s 450k. I don’t want to use the broker but now I’m scared to have multiple people run my credit. Not sure what to do.

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1) You need to find a good, reputable realtor who works primarily in the areas that you want to buy in;

2) You need to have her direct you to a broker who she knows can close your deal--likely FHA, maybe first time homebuyer programs, thin credit file.;

3) You need to have all your "docs" in a row. 

You should be able to buy given what you presented, but they will have to run your credit and verify. Generally underwriters look for 3 solid (NOT authorized user) accounts on a credit profile. The fact that you have a late in the last 12 months might also be an issue, but the ltter of explanation could help. There are a lot of programs for people with thin files, but your DTI would have to pass and you, generally, would have to clear AUS though if your income is documented (tax returns) and over 2 years from the same source, they may be willing to do manual UW. You won't know until you find someone with the time to work for you.

Good luck