Denied Pre Approval Today-Next Steps?

[Rissa8]

This is my first post after trolling boards for 2 weeks. I need some advice on what my next steps need to be to qualify for an FHA.

My husband and I found out today that we weren't able to get our pre approval due to DH's mid score being 582 (mine mid is 644). LO said he needs to be at 620. I have to go to his office tomorrow to get hard copies of the reports and he said he would go over some things with me but the wait is killing me. I want to know now what I have to do to get those 38+ points.

We've been rebuilding for about a year now. Got DH's student loans thru a rehab program and just made our first payment back with Nelnet. He also got a Cap One cc in March (credit steps) in March with a 300 cl. I got my Cap One card in Oct. Completed credit steps and in March and got bumped to a 500 cl. Also in March got a new Cap One cash back rewards with a 500 cl (just found out that is also credit steps and will be bumped to 750). Car lease in my name only.

What can I do to get this bump in points and how long will it take? I just added him as an authorized user on both my cards (as in 5 mins ago). I will pay down his cc on Friday-should I go for under 10% util? I can also get a secured loan at my credit union for 500 in his name and pay it off the next day--they said they will report it. Will that help?

Any and all advice is greatly appreciated!

[Mike_B03]

It will depend on what is bringing his scores down. Collections? Charge-offs? Judgments? Depending on what it is, there may be things you can do or there may not be. 

What is his utility on the credit cards? Definitely bring it to under 10%, that will help. It may just be that you need to wait it out until the scores go up.

[Rissa8]

We were young and stupid and had a baby before we were out of college, so we both charged up cards that we had no business using. I'll know more about what's actually on his report tomorrow.

Should I not dispute something during this period?

[Rissa8]

Also, he just purchased some things for our yard and I haven't made a payment yet (will the end of this week) so his util is prob 80% right now. I know that's not good obviously. I wasn't expecting to talk to the LO this week it all happened really fast.

[Anonymous]

Take a look at it. He probably has some collections on there. See if you can get a Pay for Delete. If you can get some collections deleted it will make your score jump. Especially if they are rather new. I had the same problem. I got about 4 accounts deleted and completed a student loan rehab with ECMC and they removed the negative from my student loan. My score went from 529 mid to 664 in just a couple months. It can be done.

[tooleman694]

The rehab should help a ton once they delete the student loan collections off and when the new student loans report his score should jump good.

[Rissa8]

How long does that usually take? For student loans to take off the collections and add the new on time payments?

[Rissa8]

And by the way, thank you all for your responses!

[tooleman694]

Couple months, when I fished mine my score jumped to the mid 600s

[Anonymous]

My loan rehab was a 9 month process. They needed me to make on time payments for 9 months before they would remove, but they completely removed the account and opened a new account to finish paying the loan. So the collection student loan removal gave me a significant boost. However, I did not go sit with a LO until I was about a month away from the 9 month mark.