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Deadline to buy a house, what is the best thing to do?

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Anonymous
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Deadline to buy a house, what is the best thing to do?

So, here's the story... during the last recession I was in a very bad position, but I held the line for a couple years before it all fell apart and my credit was ruined. This is year 7 for me and I have only one big nasty negative left on my credit history, which is due to fall off in Nov/Dec of this year. However, I absolutely HAVE to buy a house in March-May of 2021. It's a family situation and there is no other option than to BUY a place in that time period. So, what more can I do to get into the best credit report position by like February?

Fico 8: 604, 586, 556
Fico Mortgage: 687, 650, 659 (Do mortgage folks really look at this over the Fico 8?)

I have an Open Sky $1k card that is a year old this month, all good. I also just got a Self loan for $500 due to mature in a year. I am also an authorized user on a $5k Lowes card with $0 balance and perfect history.

I have a solid employment history of 6 years and a decent income. I will be a first time home buyer and am not a vetran, although, as I do have livestock, I may be able to qualify for a farm loan (I have to look into that). I should have closing costs and between 5-10% cash towards down payment.

2 REPLIES 2
Acc-Risk
Contributor

Re: Deadline to buy a house, what is the best thing to do?

I haven't had anyone look at other than Fico 8 for either mortgage or auto loans. That said. No negatives and as you said your last negative falls off in Dec so that's good. DTI (debt to income) is extrememly important. It's hard to say what losing the last derogatory will do to your score but it should be pretty substantial so I'd make sure your ducks are in a row as far as keeping utilization low during the application process, don't alter your report during that time with new applications and inquiries and make absolutely sure you shop around. You have a limited time period during the process to perform hard pulls and have them count as only one so use that to your advantage. Rates are good right now. 

Message 2 of 3
Anonymous
Not applicable

Re: Deadline to buy a house, what is the best thing to do?

Is it okay to just have one secured card and the one small Self loan? I thought that I needed more in my "file" in order to get a mortgage?

At this point I have zero debt... well, I have the $25/mo for the Open Sky card and the $45 for the Self loan, but I just have those to show payment history. I could clear them easily if needed.

Message 3 of 3
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