Okay, I understand that being pre-qualified doesn't mean much and what you want is a pre-APPROVAL letter. But... What if you have past credit problems and would like someone to look at your report and see what will be troublesome to a lender? Is pre-qualification worth the trouble from that aspect or is it not worth the inquiry on your report? Thanks!
Well, why don't you try posting some details about what past credit problems you had - as many of us here have gotten mortgages and may have had the same negative stuff. FHA usually just looks for the last 12 months to be perfect, with no outstanding charge-offs or unsatisfied judgments. Also, your city/county/state housing dept. probably has first time buyer programs/counselors who can also help you out.
Gabriella If you are serious in trying to get a mortgage, then by getting a prequalification you are taking the first step towards getting preapproved. What the prequal does is tell the mortgage broker that you can qualify for a mortgage whether it is a conventional, FHA, or nonconforming mortgage. The prequal helps to direct the broker which way to go. Good luck in your search. fla-tan
Fla-tan, thanks for your input. You are always so helpful! I must look at this as a first step in the process and not worry so much.
Thanks for the suggestion. Here it is... ME: myfico.com score 635 TransUnion score 667 Negatives: Charge off with Household in 1997 Paid charge off with Sears in 1997 Gulfstate Credit (Sprint) collection, last reported in 2002 - I'm currently disputing CBS (gas company) collection, last reported in 2000 - I'm currently disputing Student Loans late pays - sent a goodwill letter asking for deletion of late notations Positives: Car loan, paid, no lates - 7 year old acct Car loan, paid, no lates - 5 year old acct Car loan, paying as agreed, no lates - opened Feb 2002 Student Loan, paying as agreed, no lates 2 major CCs, paying as agreed, no lates, usually pay balance every month - both opened in 2000 1 dept store CC, paying as agreed, no late, never carried a balance - opened in 2000 the FIANCE: truecredit.com 609 TU 607 Equifax 611 Negatives: Chap 13 filed 1997 - discharged Jan 2002 GLA collection (medical bill) - last reported 2001 Alliance collection (utility bill) - last reported 2000 Positives: 1 major CC, paying as agreed, no lates - opened 1999 Car loan, paying as agreed, no lates - opened 2000 Has not applied for credit in the past year Thanks in advance for any suggestions!
Gabriella Open collections normally will eliminate you from a either a conventional or FHA mortgage unless you are willing to pay them either at or before closing. How old are the Student loan lates? If old shouldn't affect you. With your scores you should be able to qualify for a nonconforming mortgage and then in 2 years refi into a conventional mortgage. Your fiancee may be in trouble because of either lates or collections after BK, though I am not sure how it will be viewed since it is a medical collection plus occuring during, not after BK. If you don't need fiancee's income to qualify then you may be better off applying singly and including him on the deed (if you wish to). Rate will depend on what type of loan you are going for. Good luck and happy house hunting. fla-tan
Thanks for the input. We pre-qualified today for FHA and were told to pay off those collections and to do something about my Household charge off but I wasn't clear what (I don't think he understood the situation). He said not to worry about the latter right now but to definitely pay the collections and prepare a letter of explanation. Do you think we should just pay them or try to get the entries deleted in exchange for payment? Thanks!
congrats gabriella on taking the first step towards home ownership and getting out of the "rent race" fla-tan
