My experian score is 588. There is 6 derogs still showing. 1 is paid and 2 I expect to come off soon through disputes. 1 is due to fall of in December. That leaves 2. I need to get a mortgage in January and I need the quickest action plan to make this possible. Hopefully my scores will come up when the stuff above comes off, but as for the other 2. Help needed quick. Thanks.
robin, I don't know if this helps but as a back-up plan mortgage companies generally use your middle score of the three to determine interest rate, etc. Is this your worst one?
I have no idea what my equifax score is but I don't have as many derogs on equifax as on experian so it should be a little higher I guess. Also the last time I checked TU it was 611 but that was in November.
they may use your middle score but if any derog is unpaid you will have to pay it- even if it is on just 1 report. I had that problem until a nice intent to sue letter got it removed- in 1 hour.
Robin, First off - all charge-offs or collections _must_ be paid. They can be on your report, but if they are you have to show proof of satisfaction. It's good you're planning ahead - get 'em off now. ** REMEMBER TO CHECK ALL 3 BUREAUS BEFORE YOU APPLY ** most mortgage companies will look at all 3. You can get one on-line at Equifax for $24.95. The approval really depends on the #s -- Loan -to - value : how much are you borrowing? 80% will overcome most any credit problem in the past (>2 years ago). 90% is a little tougher, and 95-97% require very clean credit. Housing-to-income ratio - total housing payment (mortgage principal, interest, taxes, insurance) divided by total gross (pre-tax) income. Should be 28% or less. Total debt to income ratio - total payments for all debt, including housing (above) divided by same income. Should be 36%. Higher % usually requires better credit. Proposed housing payment vs. current housing payment - are you going up or down? Reserves - how much liquid (ready available) cash will you have after closing - most lenders require 2-3 months income, if you have >9 it helps a lot. Good luck to you- mj
Thanks for all the great advice. It was pretty much along the lines I was thinking. The only thing that has me worried is will my scores increase enough with the four deletions so that I can qualify. The other two I will have to offer to settle for deletion.
My husband and I plan to buy in two years and this is why I am trying so hard to get this stuff straightened out now. We have to get that charge off paid pronto. He has not been late on anything else for 6 or 7 months though. Got to start somewhere.
