Profile picture for n1kk1

Please Help if you can

My credit score for one of my reports is 569. I only owe 2800 on a closed credit card. I make 75K per year plus bonuses. I have a down payment of 7k and I also completed d the NSP in which I qualify for up to 20k closing assistance in Prince Georges County if I buy a foreclosure only. One lender told me to open a secured credit card because I had no credit. I want to know if there is a chance in hell that I will be able to buy a house this year for the tax credit. I feel like I am getting the run around.
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August 21 2009 - Bowie
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Replies (9)

Profile picture for Ken Kopper
n1kk1, to be honest its going to be tight and without knowing exactly what the credit report looks like, its tough to comment..

You mention that you have a $2800 balance on a closed limit..Did you close it or did the grantor close it? If you made the mistake of closing it, call them back up and see if they will open it back up.

Again its tough to tell without being able to analyze the credit report but sounds like you may need more than 1 account opened and seasoned for 2-3 months to get the scores in line.

There are some FHA lenders that will accept scores as low as 560 but the rates are a bit higher than if you had over a 620.
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August 21 2009
Hi N1kk1,
Here are a few facts. You need to be over a 580 (middle score) to get a purchase mortgage. If you fall between 580 - 620 you will need 12 months verification of paid on time rental history. WITHOUT THE RENTAL HISTORY you most likely will not get a loan with a score under 620.

If you are renting, make sure you are paying with check. Cash cannot be tracked.

So if you are renting and can get your score over 580,...there is a good chance you may qualify for an FHA loan with as little as 3.5% down.

Hope this helps.

Robert
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August 21 2009
Profile picture for n1kk1
thanks guys, well @ Ken, the card that I have was closed by the company. I did just get a secured credit card with a 200 dollar limit but it is fairly new so it wont even report on my credit report for a couple of months, I think. Now @ Robert, yes I pay my rent through a payment service online and there is record of my payments. Now when I pulled my score they had this calculator thing that said that if I was to pay 1000 in a month towards my 2800 closed credit card account bill then my score would potentially rise between 615-620. Has it been in your experience that your score jumps that fast? Oh and yes the card that I owe had some late payments in the past which has definately affected the score. I am now on a payment plan. The only other thing on my report that came up negative was one late payment I had back in 2002 on a department store card. I just disputed the fact that it is past the 7 years, therefore that can come off.
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August 21 2009
Profile picture for Ken Kopper
sounds like your LO already ran through a "what if" simulator and yes you can execute a rapid rescore and update scores in just a few business days.

I know its not what you want to hear but this is a great example of why you should always clean up the credit before you need it rather than at the last moment.

Best of luck to you!
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August 21 2009
In my experience those credit simulators work really well and are accurate. Keep paying on time, keep credit open and keep balances low. That's pretty much the formula for good credit.

Feel free to ask more questions.
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August 21 2009
Profile picture for n1kk1
Thanks guys you have given me some good sound advice and you are right Ken, I was ignorant to the whole credit process some years ago and boy did I learn the hard way. Now I am just trying to "get smart" and keep doing what I have to do.

I do have one final question tho, now the loan officer that I was dealing with pretty much does not call me back and seems uninterested. Should I handle my credit issues on my own, run my own score in about 2 months or so and if my score goes up, then look for another lender?? Or is this typical behavior of a lender if he feels he cannot do anything for me at this point until I fix my issues?
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August 21 2009
Profile picture for wetdawgs
My humble opinion is that the lender has put you on the right path, which is above and beyond the average lender.    His/her skills  are in the lending process, not the credit cleaning up process.   Which credit issues were you hoping for the lender to help you with?   I don't see that you should need any help at this point. 

You are very lucky to have found one who will be so helpful, so when you are ready to get a loan, honor their help with giving them the business that keeps the food on the table!   (I am not a lender)
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August 21 2009
Profile picture for Ken Kopper
n1kk1, I will agree with wetdawgs in that if the lender has bent over backwards to assist in getting pre-approved, the honorable thing to do is to stick with that lender.

I assist lots of borrowers with credit repair (both short term and long term) and dont treat those borrowers any different than borrowers that I will close in the next 30 days and see immediate income from.

Really an hour of someone's time to take an application and walk you through a credit report and then assist you with a credit repair strategy is not a ton of work. My frustration always seems to stem from doing this with borrowers following up in 30, 60 90 days or even 6 months and they have not followed through on anything. Its great to have a helpful Loan officer but you have to want it more than they do.
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August 21 2009
Profile picture for n1kk1
Okay thanks guys, I haven't gotten a pre-approval yet tho, does it make since to get one now while I am cleaning up my credit or should I wait, and just for the record the only thing this guy did was tell me that perhaps I should get a secured credit card to start to strenghen my credit. I was the one that talked with the credit agencies about my score potential not him. Perhaps he is waiting for me to get it together before I do a pre approval process.

I am grateful for any advice at this time as long as it makes sense. I appreciate all of you guys help and thanks for reaching out. Onward and upward to a better credit score :)
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August 22 2009
 
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Latest reply by n1kk1
August 22 2009 | 9 answers
  • Posted by n1kk1
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  • August 21 2009
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