Credit Score & Income we need to be at to purchase a house in 3 months . Need Expert advice

Asked by Nazia Barker, Las Vegas, NV Tue Mar 1, 2011

We decided this year that we should look into buying our first house and fix our credit as much as we can . We went to see a broker & Lender and find out where we are at . Husband income about $100,000 a year but the problem is credit aren't great as we both learn our mistake .. argghh !!

This is where we at ..his credit score currently at highest 662, 600 , 598. so lender picked mid score which is bad. Projecting in a month mid score will go higher around 10 to 15 points. I am negotiating debt which the only bad thing on his credit is 2 open / collection . Now since we are married , my old debt is technically his (thats what my broker told us ) . so I am settling my debt as well to help decrease the debt on both of our credit even though i only want my husband name and income on the loan as his income enough.

So seriously I need a straight answer on what should we do and what would be a decent credit score number to actually get approve within few months?

thank you

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10
allan erps,A…, Agent, Pearl River, NY
Thu Mar 31, 2011
Lender always takes mid score, keep paying your bills, reducing your debt and you will soon be eligible. FHA requires a 640 score with 3.5% down. It will take 3-6 months in most cases if you are dilligent
0 votes
Jason Hall, Agent, Makawao, HI
Mon Mar 28, 2011
0 votes
Jason Hall, Agent, Makawao, HI
Mon Mar 28, 2011
0 votes
Nazia Barker, Home Buyer, Las Vegas, NV
Thu Mar 3, 2011
hi,

thanks for answering my concerns. My broker mentioned the same thing. he said once his credit up to 620 , he can qualify for FHA loan . So i guess those thing that I saw that some bank approve loan on 580 credit score is all BS... :)
I ve paid debt solution people and they are actually doing the same thing i am doing right now and ended up paying at least $1500. So i am hoping in 3 months , his score will go high enough. As my broker told us , since he got new loan for my car which is 2 months ago and secure credit card as well, his credit score should go up 10 to 15 within 30 days if we are on time with payments. So i guess i am trying to see other options in increasing his credit score since we are so excited to buy the house.

thanks again
0 votes
Rosemarie Ku…, Agent, Las Vegas, NV
Wed Mar 2, 2011
Clear up your collection, and my advice to you is to call Vision Home Mortgage as for Monica
702-736-3116 she is awesome and has a great credit repair program that does not cost
an arm and a leg, too!!! She has help several of my clients, get back on there feet and within
45 days or so able to purchase a home...
Good Luck..
0 votes
Robert A Col…, , Danvers, MA
Wed Mar 2, 2011
At 600 don't bother buying; You'll be paying too much for a "sub" quality loan. Need at least 620 and really the gane starts at 640. Even at 640 depending upon down payment you will be paying in rate or points for not having a higher credit score.

Suggest you take the advise of previous answers and just focus on getting your husbands score up. If you are not applying for credit (only husbands' name on loan) your score is not a concern for this transaction (do take care of it down the line). You will be on deed and just sign some papers regarding your interest if loan defaults - nothing to do with credit transaction.

My question is what are the collections on? Medical is marginal, credit cards, auto are something else. When you say negotiating with them, understand during your payoff period the credit score will still "stink."

Bottom line - forget the artifical 3 month period. Continue renting until your husband's credit is where it should be , upper 600's at least. When this happpens you will be on a solid foundation to enjoy your new home with a mortgage rate that makes sense.
0 votes
Gerard Dunn, Agent, Chevy Chase, MD
Wed Mar 2, 2011
Settle the collections as soon as you are able. Within 30 days - you should have at least 15 points on your scores. Offer the collection agency 30% of what is owed - cash- and negotiate from there. You should never have to pay more than 50%.

Good Luck !

Gerry Dunn
Associate Broker
Serving Maryland, D.C. and Northern Virginia
0 votes
Steve Morgan…, , Bethany Beach, DE
Wed Mar 2, 2011
The lower your Credit Score the more fees you pay fannie and freddie inorder to get "Market Rate". The lender or broker has to either charge points to get market rate or offer a higher rate to absorb those fees. If you are working with a professional - connect them with your agent and write the offer so the Seller Pays those cost at settlement. All that can be written into the offer/contract with their input.

Pay your collections and removed judgements and ask for a rapid rescore.

Steve Morgan
Fairfax Mortgage Investments
0 votes
Linda Beam, Agent, Staten Island, NY
Wed Mar 2, 2011
You have already met with a local lender who should give you the best advice on what you would qualify for based on your income/debt and credit. If you need more info, speak to them again or ask your agent to recommend a credit repair expert in your area and possibly another lender.
0 votes
allan erps,A…, Agent, Pearl River, NY
Wed Mar 2, 2011
Clear up collections with a letter of satisfaction, get score above 620 and try to do an FHA loan if possible. Work hand in hand with your Lender to straighten out the past and look forward to the future! Lots of Luck, Allan
0 votes
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