Rebuilding to Buy Home

[chela62678]

Hi All,

I come to you all to get help and guidance. Will apologize now for long post.

We are trying to get in the market to sell and purchase a new home.

We did the prequalify to see our outlook. Took a hit to our credit for the inquiry.

The loan officer said that needed to work on husband's credit and mine was decent. We are looking to get a conventional loan at a good interest rate. Our current home is financed a 7.9% (12 yrs ago)

Here are our scores:

Mine EQ 668 TU 653 EX 648

DH EQ 635 TU 625 EX 581 (confused as his TrueCredit scores are in the high 700's)

Here are our debts:

NMAC $38,625/$48,505

FCCU $28,798/$34,644

WALMART $2,837/$4200 (Paid $2500)

AMEX $2004 PIF MONTH

CAP ONE $1823/$2000

MACYS $1507/$1800 (PAID $1300)

CHASE $1400/$1700

WALMART $1346/$2000

DISCOVER $1119/$1500 (PAID $900)

VICTORIA SECRET 950/1230

AMAZON 802/900

DAVIDS BRIDAL 676/1500

TARGET 652/700

JCP 612/650

DILLARDS 415/1300

KOHLS 362/600

CHEVRON 346/800

OLD NAVY 192/700

CAP ONE 117/500

CHILDREN'TS PLACE 0/350

JUSTICE 0/460

GAP 0/500

HOME DEPOT 0/500

ZALES 0/2200

$1250 COLLECTIONS MINE (3)

$2031 COLLECTION DH (9)

Both been employed 13+ yrs

Now I know we owe a lot of debt and I carry most of it. I added him to another 2 cc as AU at Loan Officer Suggestion.

What would be the best bet to get our score higher other than PIF all credit cards. Please be nice.

[TRC_WA]

You can start by getting those balances to $0.

You will be surprised at the difference in your FICO scores with $0 balances vs way too many accounts with balances.

[Burned2manybridgesB4]

What did the broker quote your DTI at?

[chela62678]

combined 36

solo mine 48

[Whitneyy]

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@TRC_WA wrote:
You can start by getting those balances to $0.

You will be surprised at the difference in your FICO scores with $0 balances vs way too many accounts with balances.

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+1.

Start with the smallest and then build your way up! 

[chela62678]

30% versus pay completely?

 How about collections?

[Whitneyy]

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@chela62678 wrote:

30% versus pay completely?

 How about collections?

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You get the best scoring by paying off all balances except one and leaving the one that doesn't between 1-9%.

You have to list exactly who the collections are with.

[chela62678]

my 3

IC Systems tmobile 413

enhanced recovery comcast 335

financial control svc medical 133

my husband has so many to list all medical for $2000

[Whitneyy]

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@Anonymous wrote:
Feeling kinda in the dumps about this. Score is sitting at a dismal 597. My husband and I each have two secured cards we opened a couple of weeks ago. I just need to get to 620 by december for a home loan. I don't feel too optimistic at this rate, though.

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What else is negative on your reports? If these were older collections that weren't updating monthly,that's probably why you didn't see a big increase. 

[Anonymous]

Wasn't expecting a response here...lol

They were a few years old, but they all reported monthly. I have two other collections. A medical bill for 2200 and another that is almost 4000 for encyclopedias we were conned into buying when we were young, but they aren't reported monthly and our loan specialist through the VA told us not to bother paying them, since it falls under a certain amount they allow to have in collections.