Home Buying in Flagstaff>Question Details

Priscilla, Home Buyer in Flagstaff, AZ

I just checked my credit score today and Transunion has the highest at 570. I went through a rough year, and I stopped paying for my credit cards

Asked by Priscilla, Flagstaff, AZ Sat May 1, 2010

simply because I didn't have the money. All four of my credit cards are in collections and also a few other accounts in collections. I am wanting to get approved for a mortgage soon, how long will it take to raise my score. Is it worth it to make payments on my accounts in collections? I need advise please:)

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Anna M Brocco’s answer
You need to get your credit and past bills in order, before even considering a purchase--yes, make payments--you can visit with any qualified loan officer--see exactly what your budget can handle and check your credit score--their scoring is different--your loan officer may offer suggestions on how to best improve your credit score in the fastest time--in the meantime--pay off old bills, keep credit cards below 50%, dispute old negatives, pay down debt, pay all bills on time. Currently FHA loans do require a minimum score of 620 and 3.5% down.
1 vote Thank Flag Link Sat May 1, 2010
You haven't paid on your credit cards, are in collections and you are asking about getting a mortgage? You will not be able to get a mortgage. It takes a short time to ruin your credit and a long time to clean it up. You need to rent a home or an apartment for a couple of years until your credit improves and you can make your payments. CCCS also would be able to help.
0 votes Thank Flag Link Mon May 3, 2010
Hello Priscilla,

My name is Manny Moumdjian with EZ Choice Financial Corp. I have read your thread and I'm wondering if you would like a free consultation on what can be done with your credit to possibly increase your credit scores? If you would, we would just need to see your credit reports to give you an accurate evaluation over the phone. We are located in California and help consumers nationwide. We would love the opportunity to share our vision of where your credit could be in the next 3-6 months. If you are serious about buying home in the very near future, please contact us for a free credit evaluation at: (888) 349-6690 or (562) 598-5277 Please ask for Manny.
0 votes Thank Flag Link Mon May 3, 2010
Hey Priscilla,
I have read a few of the previous posts. They all are seeming to give you good advice. Jeri Creson was spot on. You need to raise your scores and that will take a bit of time. It will make a difference to pay your credit cards and catch up. Another hint would be to lower your credit card debt to half of what the max limit is if possible. As my job is more lending than credit counseling, I have observed this enhancing credit scores quicker than most methods.

I am going to refer you to one of the best credit counselors that I know of. His name is Manny Moumdjian. He is with EZ Choice Financial. His phone number is 888.349.6690. His website address is http://www.ezchoicefinancial.com.
I have referred Manny at least 30 times and I have yet to have one customer say anything but complimentary things about him and his firm. Many of the counselors that I have met in the past are only as good as their last customer. Manny has withstood the time test and seems to keep getting better at what he does: credit counsel borrowers like yourself to eventually higher credit scores. It will take work, discipline and time to rebuild your scores, as Jeri said. Manny will be a great guide for you. He will even offer a money back guarantee if you are unhappy with the results.

Good luck to you.

Regards,
Phil
0 votes Thank Flag Link Sun May 2, 2010
Hi Priscilla,

Wallick & Volk (928) 556-0600 is a local Lender in Flagstaff. They have someone that will take one thing at a time and straighten it out for you.

They are very easy to work with and have many good programs, all aimed at making it possible for you to buy a home. I would be glad to take you over there and introduce you!

Beth Till (928) 606-0442
0 votes Thank Flag Link Sat May 1, 2010
Thanks everyone for taking the time to give me advice:)
0 votes Thank Flag Link Sat May 1, 2010
HI Priscilla,

The best course of action is to meet with a HUD approved credit counselor. You can find them here http://www.hud.gov/offices/hsg/sfh/hcc/hcs_print.cfm?webList… (printer friendly version) or here http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction… .

-----
PAUL WELDEN PLLC
480-241-0081
HomeSmart
Exclusive Buyer's Agent
0 votes Thank Flag Link Sat May 1, 2010
Priscilla - please understand, there is a time and place for everything - and I applaud you for wanting to get your credit back in order. But I'm hoping that when you mention getting approved for a mortgage "soon" - it isn't "too soon". A lender is going to want to see not only a return to stability, but a period of time that demonstrates a committment and ability to maintain that stability. I would expect at least one year of clean credit - no lates - following a disruption in your credit before a lender should look seriously at a mortgage for you.

Buying a home is a serious event, and as the financial crisis has taught us all too well, one that needs to be approached with care and conservatism, not rushed into with wildly unrealistic expectations. I would encourage you to take this time to re-examine the spending, lifestyle - and savings patterns in your history, and establish, first, a pattern of regular savings, of regular budgeting and a mindset towards long term growth acheived one small deduction from your monthly pay at a time.

Some financial institutions offer the WISH program or an IDEA (Individual Development and Empowerment Account). One of my lenders, Phil Chenier and Pacific Mercantile Bank in Irvine, Ca offers this program. It's a savings program with matching funds available to apply to your down payment once you are ready to purchase a home. It's a great jump start on your future.

Good luck to you!
0 votes Thank Flag Link Sat May 1, 2010
I suggest you contact a Non-profit Credit Counceling Agency or a Bankruptcy Attorney. Either should be able to advise you on the best way to handle your past due bills and what it will take to get them out of collections. FHA does not have a minimum credit score requirement but the lender is going to pull your credit and see all those past due bills. Even with explanations on why they got behind etc. it is going to be very difficult, if not impossible for you to get a loan. You might consider a Lease/Purchase as an option. If you are now able to pay off those bills it would give you a place to live that you are working to buy. Any other options such as a Seller Carry would require a large downpayment. Considering what you have said I doubt that is an option for you. Good luck, I've been where you are a few times in my life and it isn't easy to rebuild after a set-back but it can be done.
0 votes Thank Flag Link Sat May 1, 2010
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