Should we wait????

[NAMC80]

I have been sick to my stomach trying to decide what to do.  My husband and I found a house that we absolutely loved this weekend.  We have been rebuilding our credit, to attempt to get a good rate.  I'm trying to decide if we should wait to talk to a LO or go ahead and see where we stand now.  I was waiting to see if I could finish up the HIPPA process to get 3 very small paid med co's off of my EX and EQ.  TU deleted and my score jumped over 100 points. Still not sure if my score will matter much because my husband has a 8,000 judgement that we are attempting to pay off as we speak and get vacated, which is killing his score.  Here's were we stand right now.

Mine:

TU: 774 (after getting meds co's off)

EQ: 638

His:

EQ: 697

TU: 648

neither of us has other items on our CR's  Me (3 paid meds which might not get deleted, waiting on 2nd step HIPPA reply) Him(Judgement that we will hopefully pay off and get vacated as soon as they give us the settlement amount.)  Both of these things could help our scores if the middle score is not where it needs to be.  LO that I spoke to told me that they need to be higher than 680.  Also, we have to get a jumbo loan, because of the loan amount.

The killer is that Im not sure of our middle scores. Kind of wanted our profile to be clean before they pulled it, but we found a home sooner than I expected. 

Soooo... should we wait to see if our scores rise before allowing a LO to pull our reports, and risk losing the home, or should we go ahead and start working with one now to see where we stand?????

[Anonymous]

Are you eligible for FHA? Do you have 20% for a downpayment?

My understanding is that it really only makes sense to go conventional if you have high scores for a lower rate than FHA offers (FHA is pretty low right now), 20% down, and/or are ineligible for FHA.

[GRILLMASTERNEEDAHOUSE]

Scores don't look that bad to me. Obviously, we don't know what EX is but that's anybody guess. Do agree with poster, the question is do you have the down payment? If you do, find a depenable LO and go for it.. if you and hubby lowest middle score is above 620. You can still continue to fix up credit after pre-approval and rapid rescore for better interest rate. Just be careful you don't do anything that will knock you below 620. All this is pending that you found the perfect house. Opinions will vary.

[SonorityGenius]

First,  kudos on researching the HIPAA laws and following it through!

Wait for it!

Sometimes the judgement and collections are required by many lenders to be paid off, even if you tell them that they're in dispute and may be deleted.

If you're going conventional, a higher score can also equate to lower rate..esp nowadays where they have gone up way over 5%

[NAMC80]

Thanks so much for your replies,

We are ineligible for FHA, because of are areas loan limit. This particular seller is asking for 499,000.  Its been on the market for 3 months already.   I know that the jumbo loan thing is a entirely different giant.  We've got 25,000 to put down now.  We could possibly get more with the sell of our home if needed.  Does it have to be 20%?  That would be 100,000.  It would probably take us another year to save that.   My husband is going to call a broker today to see.  Even if our scores go higher, we might just need to get somewhere and sit down!!!! LOL