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Selling one home, retaining another and seeking primary residence after relocation

Update:  Due to the time it took, while I raised my credit scores, I did have to relocate and turn down a refinance approval as the lender was not going to be able to confirm local employment, but Allied Home Mortgage gave it their best.

New question.  I will be selling one home that has been being rented for the past 2 years and expect to close this month.  Currently am earning 82K paid as a monthly salary with approximately $2-3K annual bonus.

I still have my mountain house in Oregon and because of the prevailing market, have opted not to sell it.  It is in a vacation rental pool and is being managed by a professional property management company.  I anticipate vacation rental income to cover about half to 2/3rds of my mortgage payment which is now $2250/month.

In the mean time, I am desiring to purchase a timber frame house on 2 acres of property in Maine where I am now working which will cost approximately $225,000 in about 6 months.

Due to a notification by Citibank Credit cards of an interest increase, I opted to close the account, but have a $19K balance remaining.  I will be paying that off over time at the old interest rate.  I did have this account since the late 80's, so I will have a pretty large hit because of the age of the account.

Secondly, I have a platimum card air mileage card from B of A which does not disclose my credit line to the reporting agencies, so a $5.00 balance or a $10K balance always shows up as maxed out.

My question is what is the best strategy for paying these accounts down?  I can afford to significantly lower the balances, but not zero them out.

My previous lender had a "what if?" software package, that showed effects on your score if you paid such and such for certain creditors.  Any references to credit score predictors would be appreciated.
  • November 18 2009 - Bowdoinham
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Answers (2)

There are a few proven processes to get your credit score up and one of those is to pay down the credit card balances as fast as you can and of course make sure all your payments are made on time.
 
There are a number of factors that play a part in your actual credit score and I don't think anyone but the people who created the report actually knows how it works.......make your payments on time and pay extra every chance you get.....over time you will get the score you want/need.

Good luck!!!

  • November 18 2009
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Attempt to bring your balances to 50% or lower of available credit.
  • November 18 2009
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