My wife and I are looking to buy our first home together. My father in law bought the house that we are living in now and we would just be doing a refinance to place in our names. The house is valued at around $315,000 and the amount owed is about $225,000. We have been paying father in law monthly to live in the house at $1700.0 a month. We calculated what it would probabily cast with Escrow and home owners insurance without mortgage insurance since he put 20% down. We have lived there for 1.5 years.
Here is my question. Its about credit. I currently have 2 ficos from MY Fico. Equifax is 723, TU is 652 and EX is 640. Not very good. The problem is for one charge off in August 2007 for $2000 and another in October 2007 for $500. Neither of these are reporting on Equifax hence I suppose the higher score on that one. I am trying to decide if I should wait until Feb and March on 2015 to allow the two charg offs to officially fall off and see what happens to my scores then. I have had no coimmunication with either charge off since originaly was charged off.
I have two credit cards of my own one for $1500 which I owe 0$ on and another for a credit line of 10K which I owe $1600 on. I am an authorized user on my wifes card which has a $22,500 linit with $8819 on it. We have no installments or mortgage history, no car payments.
My wifes score is better than mine but she ears about 35K and been with company for three years. We have perfect pay history except for my two collections. I make an 85K base but over $100k with commissions. I have only been with the company for 8 months, was off two months and then had another job for 6 months. My work history has not been two years straight for awhile. I earned a little less at past companies.
I sorry you had to read so much to get to my question. WHAT SHOULD I DO? Should I wait and see what happens with the charge off falling off? I have them disputed right now and was told that I must take the dispute of the charge offs in order to do a loan. That would probabily lower my scores. so do I wait, how much should report be expected to increase when charge offs are gone from report? also since the charge offs have been sold there is a third one for another company called Midland funding. I am confused and would like to know the best approach. I am very consistant on my bills since the charge offs, I just went through a difficult part of my life then. I want to have better credit and pay off the cards at the end of each month. I just paid $4500 off on my two cards and we are working to pay off the **!( on my wives card.
Thank you for your time an patience