I absolutely need a mortgage in January. My scores are high 500's (588-598)low 600's and may possibly increase by 20 or so points by January. I am looking fo a loan somewhere in the area of 160k. I work full time and have self employment income which (because I started a new job and will not have been here a full year by January) will outweigh my full time income. I can put down somewhere in the area of 12-15k. The house would be brand new construction. I need any help/direction you can give me as I do not want to mess around with lenders that I don't have a chance with. My main concern is that by January I will still have a few charge-offs which I can easily pay and 1 very large collection which I absolutely cannot pay off in full but can make payment arrangements on and possibly get a letter attesting to this. Please let me know what my chances are.
If you have switched jobs, are they in the same line of work? If not, are you currently going to school in your current profession? These are questions that I was asked when I applied for my mortgage. Luckily, I switched jobs within the same industry and was going to school at the same time. Also, I wasn't allowed to continue making payments on one of my charge-offs. They made me pay off the balance before I could get my loan. I also had to pay off all my other charge offs. Have you considered going FHA and putting less down? Then you could use the money meant for part of the down payment to pay off the chargeoffs. Also, are you going to start the process of building in January or purchase a newly constructed house (where the builder picks out all the guts)? It usually takes about 3 to 6 months to build. You don't close the loan until the house is finished. I'm not Fla-tan, but I hope this helps! Sirrowan
I am going to school and it is the same line of work (business development) but a different industry (Sports Management). I will be buying a new home that will have to be built. Construction will take between 4-6 months. I just don't want to get involved with a lender that can't do the loan and end up wasting my time and racking up inquiries that I surely cannot afford. I need a reputable broker who has experience facilitating new purchase loans for people in my FICO range.
Robin How long have you been in the line of work you are in? As long as you can show 2 years then that shouldn't be a problem. How much do you owe on the collection and to whom? How much on the chargeoffs? The mortgage should definately be doable as you describe your situation, though I will know further after getting a bit more info. BTW, where is the house located? fla-tan
Fla-tan: I received your email thanks for your quick response. I will email you again privately later today. I have been in the same line of work since I began working back in 1993. Only with more experience and different companies my current responsibilities are a little more involved but the nature of the work is the same. The house will be located in Pennsylvania. The cost of the home as I said before will be in the range of 160k and I can reasonably put down about 10-15k. Also my self employment income will outweigh my full time employment income this year because of the length of the time I have been employed with this company. By January after I file my taxes I will have the tax returns to support this info. My scores are what I quoted before and should be between 10-20 point higher by January. I have will probably have a few charge-offs still showing which I will pay off. However, I have a very large collection account ($8000) that arose out of a tuition bill(long story) that I can make payment arrangements for but absolutely cannot pay-off entirely before I get the mortgage becuase it will cut into my downpayment money. I am sure the school will provide me with a letter that the account is being paid. I am still trying to challenge this off my report but preparing for the worse case scenario if it does not come off. So that's my situation. Do you still think the loan is doable? I will have no other outstanding debts except for that in the case it does not come off the reports. If you still think it's doable, let me know and I will email you further. Thanks.
Robin I will answer any further questions offboard because of privacy concerns. However, I will say that yes, it sounds doable to me. fla-tan
When we started the process of obtaining a mortgage in Feb of this year, there was no lender available to approve us if we didn't pay off the collections that were reporting on my wife's credit report. In simple terms, they wanted them paid! I then started the process of validation with them and racked up numerous violations. I ended up suing each and every one of them by June of this year. All but 1 collection agency settled out of court by paying me and deleting. The other defaulted and did not show up in court. I won a judgement of $2060.00 which I am still trying to collect on. I faxed the judgement and all letters to the consumer affairs department of the credit bureaus. They removed the tradeline. It was then that we applied and got approved for a mortgage. They still are making us pay the charge-offs though. I called the creditors and gave them a sob story. We agreed to settle for about 60% of what was owed. I also talked them into notating the account as just "PAID" and they will remove all notations of lates and charge-offs. We are now closing on October 29th, 2002. Since then my wife's scores have all gone up about 100 points. Keep working on your credit, I would contact each creditor and collector and try debt settlement for about 60% of what is owed. Get it in writing first, I had them all fax me the settlement offer to me before I mailed the payment! This way you might be able to swing paying that $8000.00 debt for way less then what you really owe. By contacting and settling on our charge-offs this accomplished 2 things. 1. We didn't owe them anymore and would never be bugged again. 2. We saved about $4000.00 dollars which we now have sitting in a bank we can use on the new house. Good Luck! Tac
