Increasing Credit Score / mortgage need advice?

Deal Score0

Before reading this, please note that I did research on all subjects that I am inquiring about, I ask that you do not share your answers to these questions if you had a real experience of such situations or if you are a specialist in this field. I get my “facts” of the Internet, how much you should install a home, how to improve your credit so I know where is the info, I will seek advice from people who have lived (subject to such situation), or are professionals in the field / related field. Aitäh.Siin we go … I am currenty put aside money to try to get approval for a mortagage. I know what everyone “knows” about mortgages, credit ratings and credit of the Internet and do research on these “answers”. Im want to get answers to questions: 1 Is this the right time for me to do this? (Im not asking if this is the right time to buy a house in general, we all know the answer to this question, im application is based on my situation after reading the) 2 Am I capable of be considered for mortgage approval? Why (not)? Third My credit score is considered “reasonable” and if not, what can be done to reach this point? Here is the detailed information, you should read before I give the standard answer that I found through online searches :======= ========== ===== ============ Begin the information in my credit score today is the 660th I had a Capital One card in 6-7 years that were not used, I I started using it at the end of 2010 to try to increase your credit score. I had five inqueries credit report, the four that go from 30/03/2009 to 12/07/2009. Sallie Mae student loans, I have two statements and I have never been late. I have a negative effect from the list of Old Navy Card 01/11/2004 that says “Paid was 90 days late” status. So now my only job openings on my student loan is that I have $ 2,300 on my credit card and only use what I will try to build my score, my limit is $ 500, I am using about $ 200 per month or less and pay enough so I’m just a debt of about $ 60 in my balance (I can hear ‘never owe more than 30%, 20%, 9% “- which is who is right?) Some questions about Credit: If a credit inquiries removed from my credit history (from what I hear, they disappear after two years), this increase my score, and if so, what percentage of my score on this paragrahvis.2. After a negative input disappears from Old Navy, I hear takes seven years, it will increase your score, and if so, all ideas on how this may affect skoor3. What do I do a little more to improve my credit score? Fourth I do not understand my student loan, I just decided to pay the sum required to 65/mo $ 100 per month. If I pay within 4-5 months, will it help me? I have a friend who recently bought a house with his wife and she said it had increased its funding Issue 9 months, obtain a secured loan and pay it back immediately, and write letters to get negative items deleted from your credit history (it was a little different because he went through identity theft ). Secured loan can really help ?================ ========================== End of information page =============== personal information, mortgage issues ==================== ===== I am currently living with my mother. He does his job a little less than $ 27K/yr (over 12 years) and have really great credit history and score 860 +. I run a small business (est. 10/2009) in 2011 and began to W2 41K/yr, I mean an increase of over $ 50k-55k to see if it helps. I am interested in information on the possibility of digging and trying to become homeowners in 2011 <-> Q1 2012. I received many mixed reviews from friends, homeowners and experience of legal persons (it just creates headaches -> but still focused on the goal), I’m looking at $ 30K to put it if it works somehow, and my mother used to approve hüpoteek.1. Can I apply for a loan and used my cooperation mother-signer, or vice versa, then please share your expert / experienced arvamust2. What do you think the idea of ​​trying to do, the end of 2012 I gave information 2011/start? Third proposals, or ideas?

  1. Reply
    April 30, 2011 at 12:35 am

    You can get approved for FHA with Fico score as low as 620 (depends on the bank).
    Inquiries show up on your reports for 2 years – yet they only affect the fico score for one full year. MyFico/ education. They only lower scores by about 2 to 3 points (minor).
    FHA will look at your reports and note the item as paid, and they will act accordingly.
    FHA does not focus on the credit score.
    That’s why you see people with low scores get homes – they pay off items.
    With that old navy item, try disputing it.
    It coud be removed from your reports if the date of last activity is more than 7.5 years

    Pay that credit card in full each month.
    It brings absolutely, positively no benefit to credit scores to carry a balance.
    The Fico score has no way of knowing if you are paying interest or not.
    Use it for things you need like food or gas and pay in full to continue showing usage.

    Student loans are installment loans. Not bad for credit.
    More important is to pay that credit card (revolving credit) in full each month.
    I would rather see you not pay the student loan, so you can have a bigger down payment.

    No need for a secured loan.
    You already have 2 forms of credit. A credit card and an installment loan.
    A secured loan would only benefit if you had no mix of credit or no credit at all.
    A secured loan will bring practically no benefit to you.

    Scores of 860+ are impossible.
    She is getting a Faco score from some site – not the real Fico score.
    You can only get the real score from for a flat fee of about $ 20.

    If you run your own business, you will need to have a steady income for at least 2 years, and have proof with your tax returns. They may require 20% down – be ready for this.

    It costs nothing to request to be pre-approved for a loan to see where you stand.
    Call them up, and make an appointment.
    Banks do this for free in the hopes that you will make your mortgage with them…

  2. Reply
    Greg Guess
    April 30, 2011 at 12:43 am

    1 if you are comfortable with buying a house, it is a good time.
    2 don’t worry much about old navy. write a letter if you wish. sounds like you have enough good recent credit to overcome.
    3 credit scores were basically invented for people who cannot read a credit bureau. by industry standards, the score is high enough.
    4 i would keep the student loan open until i bought a house.

    don’t know what type of home you are buying or the cost. so its hard to say if $ 30K is enough for a $ 100K home or a $ 600K home. in my opinion, 8-15% should be enough.

    if you are a “w-2” employee, you need to have the title of general manager or operation’s manager instead of business owner. to a lot of people, business owner sounds cool and powerful. to a bank or finance company is sounds like a lot more risk! they might want years of bank records and 2-5 years of schedule c’s and so forth and so forth. the additional risk could be reflected in your APR.

    as far as your mother helping you, i don’t think that helps much. her credit sounds great (and yes there are 850-860 scores,) but she may not budget for a home loan due to her income and sounds like you are not going to have a big budget issue.

    good luck! hope this helps!

  3. Reply
    April 30, 2011 at 1:12 am

    First, pay the credit card balance in full every month. There is no benefit to carrying any balance. It just cost interest. Carrying balances of more than 30% of your limit, hurts your score. Pay off the balance and your score rebounds. Don’t worry about the utilization percentage. It is included in your FICO score but not worth the effort to figure out exactly when the card updated and schedule charges and payments to get the perfect utilization rate. Just use the card and pay in full — that will do the most to build credit.

    Second, hard inquiries really only ding you score a couple points. Your score quickly rebounds and by the 12 month point, the inquiry has very little impact on your score. When the age off at the two year point, it won’t make a difference. Also, that late payment has less impact as it gets older. By the time it ages off at the 7 year mark, it too won’t make much difference.

    Your student loans are installment loans which build credit by making the payments over time. If you paid them off, the loans would still show on your credit report as paid for at least 10 years. They would still count in your FICO score, just not as much as open, active loans. But most of your score is based on the last 2 years and that would include paid off student loans.

    Paying off the student loans would save you interest. It would also improve your debt to income ratio — a big factor used by mortgage companies. Personally, I think paying off the student loans would be the best way for you to go. A lower debt to income ratio is better than the few score points you might get continuing to pay on the loans.

    Don’t bother with a secured loan. The cost of the interests just isn’t worth the few score points it might give you. You would be better off to get another credit card. Use it and pay in full. It would add a credit line and avoid interest. But don’t open or close any accounts within 6 months of applying for a mortgage.

    Try to buy the house without your mother co-signing. You will qualify for a house that you can afford on your own. Better to settle for a little less house and not end up struggling to keep up with a payment beyond your means.

    By the way, FICO scores only go to 850. Vantage scores go to 990 but and 860 Vantage score is probably only a 720 FICO. Creditors use FICO. You should make sure you are looking at FICO scores and not Vantage or Fakko scores.

    A 660 FICO could get you a FHA mortgage, but you need 720 FICO for a conventional mortgage. Large downpayments do a lot ot overcome credit issues.

    You may want to double check about your self employed status. Most mortgage companies are going to want 3 years worth of tax records. I’m not sure doing W2 for yourself will be enough.

  4. Reply
    Original Credit Guru
    April 30, 2011 at 1:49 am

    I find most people answering in this forum to be ignorant of how credit and scores really work. Don’t take advice here (Except from me.)

    Nine months to raise scores is WAY too long. My clients and referral sources would never stand for that.

    Is your middle mortgage credit score is 660? or did you get “consumer scores” online, which are generally much higher than the scores your mortgage lender will get.

    Were those “hard” credit inquiries or “soft” ones? Did you authorize them if they were “hard”? What month and year were they? On which Agency’s in-file? You see, even what you provided is NOT enough data for an expert like me. I always comb the Creditor’s / ‘Lender’s / Loan Broker’s credit reports before I can give expert advice.

    Mortgage guidelines are changing pretty much every day as they were in summer and fall of 2007.

    This is way too much to read, I scanned some of it. Why don’t you just find an honest, experienced loan officer and let them advise you?

  5. Reply
    April 30, 2011 at 2:41 am – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

  6. Reply
    Richard Mason
    April 30, 2011 at 2:58 am

    I know of a business where you can work from anywhere… you need a phone a computer and you are in business. It’s residual income so your income gets bigger as time goes on .. also they pay instantly when someone buys the product online. pretty cool!

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