My husband and I have dreamed of having our own home for years. But we both made some bad decisions and for several years I went through difficult times financially and ruined our credit. In addition, we are awesome at save money! In short, we are terrible at handling money. But we both make pretty good money and have long histories in our jobs. When we received a flyer in the mail from a mortgage broker advertising a first time home buying program that seemed too good. To be honest, I couldn’t help but call for help, despite my reservations.
When I spoke to Lena (name changed to protect her identity), she told me that we have a little something. do the work to get our faith where it will be needed. We both needed a FICO score of sixty six; Greg was close, but I was 560. At that point I gave up; Telling her that there was no way I could pay off my old debts as she used to. This is what I was told to do before, and not just to make money. Although Lena would not give up on me so easily! He had some tricks for us to get our name, and he said that there were ways around the lack of savings, to ask for the seller’s credit. She told us how much it cost to have us approved because once we got to 600 FICO (with a reasonable payment) she introduced us to the agent and told us to go to the market.
Repair Credit in No Time
Lena explained that paying off debt, while nice, isn’t necessarily the only way to get my credit back. Credit reporting agencies have been more emphasized in recent history: keeping low revolving account balances, pay your bills on time, and having some account history. The last two only take time – all you can do is pay your bills on time every month and wait for your account to age. But the first is much more doable! I had three credits, all of which had balances that were close to the credit limit. Credit reporting agencies prefer that you have a balance below 30% of your limit, although it also takes some kudos to get them below 50%.
When Lena put this bug in our ear, I found creditboards.com, which is an amazing credit repair resource. The discussion forum site offers more information than you could possibly ask for on any subject, plus lots of experts who have “been there and done that” who will answer your questions and give you advice. I highly recommend!
One of the things I’ve learned on creditboards is to go through your credit report and discuss any issues that are questionable or misreported. You can start this by write to credit report agencies and request that the item be removed or corrected as necessary. If they claim that the information is correct, the next step will be to write to the creditor asking them to report the correct information. Greg and I both had success with this, managing to remove a couple of old accounts and update others. Creditboards also suggest writing to your creditors to request a “good adjustment” and remove late payment notices from your report. I have tried this several times without success, but I have read success-story”>success stories from others as a price shot. !
Greg also took some distributions from the employee stock investment account to take care of some of the high balances he needed. We got all our balances below the 30% mark, and some of the cards were counted. But even with money extra money we had to grind together. we paid and ended up using one of the cards again for two weeks and it set us back a bit.
Getting our balance was one of the biggest contributors to increasing our credit, and we both managed to get our scores past the 600 mark. Every month we saved that way, we got an extra two points and we’ll continue to do so as long as we keep them down and pay our bills on time. Lately getting paid, opening a new account or maxing out the card will give us a way.
Dinner bad plan
I am sorry to say that while Lena helped us a lot and put us on the way to the property, she also gave us some wrong information. In addition, once we got to a sixty FICO score, we couldn’t get a loan. She had tried one program, automated submission, and it came back with a rejected “credit” account. C. Lena tried to find more ways to score our points, not all valid. He also told us that we would probably get about $25k less than what he initially told us we would get approved for. We were excited.
One reason C. Cornelius wanted me to work on a credit card that had a history of poor pay. Since the trade line was derogating, he thought I should pay it even though it was under the 30% threshold. I asked about this on the credit boards and was confirmed by several that this would not make a substantial difference. I couldn’t really afford to pay her back, so I left.
The next thing he told us to do was to pay the down payment that we had up to 50%. Again, we didn’t have the resources to spend two thousand dollars. I turned again to the creditboards and learned that most people little or no score increase when they pay off or equalize their mortgage. to be away Now we were three striking, which two had given us to do that he took money from our pockets in no short time increased scores, and he did not take a loan to us when we got our scores where he told us to carry them. We started shopping for a new mortgage broker.
Manufacturing Sectors Galore
When we told our realtor how unhappy we were with Lena, he told us that he would refer us to another broker that they had done with Alicia. At the same time, Greg spoke to a co-worker who had a mortgage on the side to see if he could help. Brad did everything for us and earned our approval. Unfortunately, the approval conditions were such that we could not accept interest-rate; We want to pay off all our debts, and we would need several months of cash reserves in the bank. This was impossible, so we turned to Aricia.
Alicia Conte was like a cow. She aggressively went after several programs until we got approval. She approved us to get the first amount that Lena had brought us, although Lena was annoyingly high with the interest payments, she was the best with the interest rate they gave us (she struck four). It helped us realize the benefits of tax, as we realized that we could handle a higher salary than we thought. Shopping is still up to the end of our offer in our house, getting us the best possible. He also pushed our fund through as quickly as possible, waiting for us the keys to our house more than a week earlier which worked out well for us.
To work around the lack of savings, we asked for a seller’s credit for less than the price on the house. Additionally, our realtor gave us an incentive to stay with that changed firm. With these credits, we could pay the loan payments and some other up-front costs of buying a house. We could never do without them! This was the key to making it all work together, and I have to give Lena credit for giving us the idea.
The whole process from the first phone to Lena getting our keys took about three months. It took about a month to get our credit score. , two weeks to get the right loan, two weeks to get the offer accepted, then our fiduciary lasted about three weeks. Today we are very happy in our new house, although the salary is definitely going to be good this year to ease the pain Our payment has not gone up for at least five years (we have a fixed interest rate of 5 years, and then our payment will only go up if the rates skyrocket), and we will be in refinance for two years and I hope that we will then submit our payment. In the meantime, we will eat a lot of ramen and pro We watch a lot of TV shows!
If we have been in real estate this past year but dream of owning a home, I highly recommend paying your credit credit card balances, Pay all your bills on time and don’t open any new accounts. After you’ve done this for about six months, talk to a couple of mortgage brokers and see if they can do anything for you. good luck!
