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Please help my family buy our house-need advice

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Anonymous
Not applicable

Please help my family buy our house-need advice

This board has helped me immensely. Maybe too good as I have opened many accounts in the past three years. My average age of accounts is 3 years 4 months.I have not applied for anything since 5/8/2020 (however Macys gave me an increase Dec 2020 and it shows up as an inquiry).

 

My goal had been threefold:

  1. Car loan( I have done that with NFCU for both car loans)
  2. An American Express card(I have the Delta platinum card but I really want one of the other cards(a non branded card). I have had this Amex since April 2020 and I cannot get a credit line increase(its been 1k) or be approved for another card. 
  3. A home loan

 

My mission in life right now is the home loan. I’ve got 20K to put down(I recently changed jobs and cashed out my 401k so I could have money for a down payment). With my profile, how do I get my scores up 15 or more points this year? Is it possible? Should I focus on paying down the 20k loan? Will that help? I really want to buy a home when it makes financial and market(housing) sense.

 

As a side note I discovered I have a 25k federal lien. I understand if I set up a payment arrangement with them that the lien will not affect me getting a home loan. I’ve been renting a house for $2200 a month and I think its time I stop paying that in rent.

 

Credit status

Scores

Experian 649

Equifax 660

Transunion 651

 

Loans

33K (just opened Jan 2021)

19K( three years left on loan)

61k student loan

 

Credit Cards

5% utilization

$428 Affirm

$750.00 Macys

All other credit cards are $0(I keep a small balance on them at the end of the month <20

 

General notes

21 revolving accounts

4 installment accounts

 

Any and all thoughts are welcome. 

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Please help my family buy our house-need advice

I don't really have any insights on a lot of your questions, though I will say this might get more foot traffis in the Mortgage section. The only other thing is that you should generally not apply for new products for 12 full months prior to a Mortgage and I see you have recently taken out a Loan in January.  Also, I probably wouldn't have cashed out the 401K as there will be tax implications. I would have rolled it over with the new employer or something else. Others will likely have better advice concerning the lein etc.

Message 2 of 6
tcbofade
Super Contributor

Re: Please help my family buy our house-need advice

If I'm reading this correctly, you really aren't that far from a mortgage.

 

Is AZEO an option for you?  You mentioned small balances on cards at the end of the month... what are the statement balances?

 

Mortgage scores REALLY like to see the vast majority of your revolving accounts reporting a zero balance.

 

Are the scores you listed mortgage scores or Fico 8 scores?  (or some other score?)

02/01/24 Fico 8: EX 757, EQ 803, TU 783.
Fico 9: EX 760 12/16/23, EQ 790 02/04/24, TU No idea.

Zero percent financing is where the devil lives...
Message 3 of 6
Anonymous
Not applicable

Re: Please help my family buy our house-need advice

THe scores are FICO 8 scores.

 

Is Fico 2 the mortgage score? If so my score is 660 Experian for Fico 2.

Message 4 of 6
Anonymous
Not applicable

Re: Please help my family buy our house-need advice

Any thoughts on a strategy to increase my scores?

Message 5 of 6
JVille
Valued Contributor

Re: Please help my family buy our house-need advice

Get your Federal Lien handled ASAP! You need to pull lol 3 Mortgage scores. Fico 2, 4 & 5. The lenders will use the Lowest Middle Score when looking at all Borrowers on the loan.

Message 6 of 6
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