Mortgage Approved!!!!

Discussion in 'Credit Talk' started by TX Mommy, Apr 12, 2001.

  1. TX Mommy

    TX Mommy Guest

    Hi everyone! I have been lurking and posting on this board for several weeks now, with the intent to clean up my credit and buy a house. Well, I get so obsessed and focused on things that I have no patience!!! I signed up with Junum about 3 weeks ago and was going to let them dispute 1 round and then I was going to try to qualify for a mortgage. Well, I just got so antsy and couldn't wait,so I decided to just give it a try. If it was too bad, then I would wait a few months (2 max) and try again.

    So today, I went ahead and applied with Coldwell Banker. I got approved!!!! My scores were: Equifax 621; TransUnion 639 and Experian 602. They based the loan on my median score which was 621. They suggested that I go with an FHA because I would only have to put 3% down, and the seller pays alot of the closing costs. But there is a limit of $157,000 in the county that I want to buy in. I said that I was looking for a house around $200k and he said you would have to conventional with 5% down and approx. 4K in closing costs. But he said I was approved for either and could lock in with the rates!!! If I go FHA I get an interest rate of 7% but if I go conventional (because I don't have great credit) I would get 9.5%.

    I am just sooooo thrilled because I honestly didn't think I would qualify for anything and here I am about to be a homeowner!!! It is truly thrilling and for those of you working towards that home buying goal- Don't give up!!! It feels great!!!

    Now I just have to go find a house! I'll be "shopping"this weekend! Thank you everyone for "being there" for me in this exciting time and I will keep you all posted!

  2. NanaC

    NanaC Well-Known Member

    Wow, Congrats! That is just wonderful! Tell me, did you do this locally?

    :) Smiling for you.
  3. TX Mommy

    TX Mommy Guest

    Thank you so much!!! I spoke with my realtor(who is thru Coldwell Banker) and she suggested I try their national mortgage company. I said, well I don't have good credit I'm going to have to go with one of those "sub-prime 12%" mortgage companies and she said no just give CBC a try. Well, I did it over the phone, they pulled my credit, I faxed them some documents and that was it. I am pre-approved and locked in!!! It was very easy. If you want more info, let me know!
  4. NanaC

    NanaC Well-Known Member

    That really is interesting. I may just be bugging;)
  5. am

    am Guest

    Hey that's great! I have a question..did you have to show your rent payments???? like copies of checks??
  6. TX Mommy

    TX Mommy Guest

    They said I could either get them 12 months cancelled rent checks (front and back) or have the land lady fill out a form stating how much we pay each month at that we are always on time (which we are!!!)

    I faxed in my last 2 years of W-2s and 1 month worth of paychecks. They said they would need to see copies of my checking/savings acct statements to show where I am getting the money. But, thru FHA all of the down payment/closing can be 100% gifted (meaning someone that is a relative can give me the money). That way, I don't have to prove where the money is coming from. That person just has to provide a letter stating that they are "gifting me" $xxxx.xx and deposit that amount in either my checking or savings. The whole thing was pretty easy and I am just amazed!!!

    I know how scary the whole process is, so I am really very happy to help anyone who is trying to secure a mortgage. I still can hardly believe it!!!
  7. NanaC

    NanaC Well-Known Member

    Just curious...what kind of credit history did you have to deal with? Thanks so much! I'm excited for you!
  8. Tx Mommy

    Tx Mommy Guest

    Hi NanaC! My credit for the past 24 months has been perfect. No late pays, no negatives in any way!

    My credit looks like this:
    5 collections-all paid in full (from old medical bills)
    1 paid charge off (cell phone 4 yrs ago; paid in full)
    Spiegel - 1 90 day late; 1 60 day late; 2 30 day lates
    Dillard's - 1 30 day late
    All of the negatives were from 1998.

    The rest of my report is positive in good standing and looks like this:
    American Express Balance: 980.00 Closed by Creditor
    Compass Bank Auto Loan Balance: 9100.00
    Chase MasterCard Balance: 2,225.00 Limit: 2,500.00
    Providian Visa Balance: 1900.00 Limit: 2,300.00

    The rest of my credit cards have $0 balances.
    Target $1000 limit
    Foley's $900 limit
    Spiegel $2,000 limit

    And 2 Capital One cards that are closed with no balance.

    That is it. They did say that all of my charge offs and collection accounts had to be settled/paid prior to being approved. And they said that since all of my negatives were more than 2 years ago, that I was fine. I also have been at my same company for 8 years and have a good salary (75k).

    I think FHA loans are pretty easy to get if you have gotten your credit back on track for at least 1 year and if you have settled all of your collections. The only draw back is that the max loan limit is sometimes not enough to get a good house. In my area $160k can get a really good house. The max's differ from state to state and county to county.

    Let me know if you need any more info!

    TX Mommy
  9. NanaC

    NanaC Well-Known Member

    Thanks for sharing! You inspired me and I'm really looking into this now. Thank so much!

    By the way, I understand about house a smaller house in a good neighborhood is 150-160.....whew..

    I'm from texas (el paso)..and you can buy a mansion for that..of course, it's in el paso..ahahah..anyway..

    We shall see...I can still "hear" the excitement in your messages! Wow!
  10. marci

    marci Well-Known Member

    Congratulations, TXMommy! That's fantastic!

    Happy house hunting...

  11. am

    am Guest


    We're looking at houses in New Mexico about 150 miles from you and when TX Mommy said about the 170k house not being enough, I about died! lol......I'm looking in the 60k range! lol.....
    But Tx Mommy's info is great!!!! I love threads that have lots of great info!
    Thanks Tx Mommy, let's you a house! :) (I use often--saves time!)
  12. CF

    CF Active Member

    Re: NanaC

    Keep hounding them about the conventional rate. I bet they marked it up to meke a hefty Yield Spread Premium. If you get a quote from someone else you may be able to make them lower the rate.

  13. mother2

    mother2 Well-Known Member

    Tx mommy

    Congratulations. I'm happy for you. I remember you told me you were going to try and wait until the first round but you wasn't sure. I'm glad you didn't wait. You have more GUTS than I do. If my score was 600, I would try but it's

    I can tell you are really flying high right about now. You go girl. I can't wait until my first round is over :eek:(
    It's killing me.....ohhhh the suspense.

    I hope you don't mind me hounding you sometimes with questions. Happy house hunting! :eek:) I'm smiling for you ear to ear.
  14. NanaC

    NanaC Well-Known Member

    Re: NanaC

    I know! We actually considered moving back to El Paso because we could get so much more house for the money...

    but..then my husband got this great job, blah, know the deal..

    So...we will pay outrageous prices...if..(big if) we can get a loan...and I'm not holding my breath on that..
  15. NanaC

    NanaC Well-Known Member

    Re: Tx mommy

    Our scores are mid-6's..but...I don't know..just can't believe it would work out..

    Am I the only one this pessimistic? We shall see.

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