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Help! Want to buy a home!

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New Member

Help! Want to buy a home!

It's come time for my fiance and I to purchase a home and am having a hard time qualifying for a mortgage due to my bad choices with credit a few years back.  Wondering how I should go about fixing my report ASAP as we want to buy a home by the end of summer if at all possible. I have the funds to pay off most, if not all negative items, but will that drastically increase my score immediately? 

 

Positives on report:

AU on Amex (10,000 limit, 500.00 balance)

AU on store card (1500 limit, 0 balance) 

Car loan (currently owe about 20,000)

Two store cards (250 limit each, 0 balance)

Indigo credit card (300 limit, 0 balance)

 

Negatives on report:

7 collections (ranging from 200-1200 each. 3 different cable companies, a fitness center, a credit card, and cell phone bill)

2 collections that have been paid but are still on report

2 unpaid credit card charge offs (First premier 300 balance, citibank card 600 balance)

1 paid credit card charge off (BoA from 2015)

55 inquiries (purchased my car last summer and due to bad credit, they ran my report to every bank possible)

6 REPLIES 6
New Contributor

Re: Help! Want to buy a home!

Following...

1. HOLY CRAP I have never seen that many inqs! I went through something similar a year ago and got almost 20 in the course if a week.. yikes!

2. what are you current FICO scores?

3. are you or your fiance Veterans by channce?

4. do you know if you qualify for FHA?


2/25/19 FICO 08 = EX-580, EQ-559, TR-610
Current FICO8 as of 5/21/19 = EX 621, EQ?, TR?
Exp mortgage score 607!
Message 2 of 7
New Member

Re: Help! Want to buy a home!

My current FICO scores are 606, 607 and 597. My fiancé is a veteran but she currently has a 6000.00 charge off (that we are paying 800.00 on monthly) so she can’t be approved either at this point. We do qualify for FHA as well but haven’t been approved
Message 3 of 7
New Contributor

Re: Help! Want to buy a home!


@Lizaroo233 wrote:
My current FICO scores are 606, 607 and 597. My fiancé is a veteran but she currently has a 6000.00 charge off (that we are paying 800.00 on monthly) so she can’t be approved either at this point. We do qualify for FHA as well but haven’t been approved

with your scores you should get an FHA approval as long as you have 12 months of good payment history on your current accounts. 


2/25/19 FICO 08 = EX-580, EQ-559, TR-610
Current FICO8 as of 5/21/19 = EX 621, EQ?, TR?
Exp mortgage score 607!
Message 4 of 7
New Contributor

Re: Help! Want to buy a home!

I'm sorry to have not answered your original question..

IF you can get PFD arrangements with your collections.. when they delete them you will most certainly get a nice score boost. Charge offs will be another one that will help your score when you pay them.. bc they will stop updating monthly ( I assume they are? and they are smaller amounts so thats a good place to start)

How old are the collections and charge offs?

Also, how many months off good payment history do you have on those possitive accounts?


2/25/19 FICO 08 = EX-580, EQ-559, TR-610
Current FICO8 as of 5/21/19 = EX 621, EQ?, TR?
Exp mortgage score 607!
Message 5 of 7
Highlighted
Frequent Contributor

Re: Help! Want to buy a home!

You should use your five cc's and auto loan to make monthly on time payments.Pay down any cc balances down to 1-6%.Learn the azeo method.Keep your old cc account open and don't apply for any credit accounts for one year before the mortgage app.Your biggest Fico score improvement will come only if your cr  becomes derogatory free.GOOD LUCK...

Message 6 of 7
Regular Contributor

Re: Help! Want to buy a home!

Most utility companies will accept payment and revoke the account from the collection agency. See if they will cancel the agreement with the collection agency if you pay them, make sure you get something in writing before paying.

The other you can try to PFD. Send goodwills to the ones you have already paid.

Were the charge off balances sold to collection agencies or are they still owned by the original creditors? You may be able to PFD those if they are still with the original creditors, if not, goodwill the OCs. Same with BofA. Those shouldn’t impact your ability to get a mortgage though.

Typically when you are shopping within the same industry (auto, mortgage) they lump all those inquiries together as one as long as they were all done within the same month. There may be a limit to how many they will lump together, though. I’m not sure. I do know that after a year, inquiries no longer impact your score BUT a manual underwriter will still see the inquiries. Either way, nothing you can do about those but wait them off. You should see a score increase at the 1 year mark, though.
March 2018 - EX: 419 EQ: 456 TU: 423
February 2019 - EX: 537 EQ: 547 TU: 509
March 2019 - EX: 625 EQ: 555 TU: 579
April 2019 - EX: 640 EQ: 637 TU: 642
Message 7 of 7
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