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Old 03-07-2009, 04:02 PM
 
901 posts, read 2,613,658 times
Reputation: 562

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Quote:
Originally Posted by mirela26 View Post
so thanks for your reply but just like i siad before if you cant help pls don`t reply...
You were given help. The answer is that right now you are not in the position to buy a home because of your credit score. A couple of people wrote that. They were not being mean, they were being honest. You need to live with the advice and work on your credit score. Why is that so hard for you to understand? I can't believe that you are saying that people cannot read or write well. If that isnh't the pot calling the kettle black, I don't know what is.

 
Old 03-07-2009, 08:43 PM
 
Location: Maine!
469 posts, read 1,633,406 times
Reputation: 319
Quote:
Originally Posted by mirela26 View Post
hi...i have been reading through posts for the past 3 hours and can`t find anything similar to my situation...
me and my husband are trying to buy a home for the first time and had a local mortgage broker pull our credit to see what we qualify for only for her to give us a big speech about our credit and how important it is like we didn`t know...we both are young and had some bad descions reflect now on our credit...we have both a credit score of 575...she now told us that the lenders she works with only do fha loans now and they require a 620 credit score...told us bunch of bs about obtaining a secured credit card and spend half the limit per month and keep making a min payment each month...which isn`t really bs but i tought that she could get us some kind of idea what we could get approved for...my husband has a repo that is 5 years old but he is currently making monthly payments on it for about 2 years now...he also got a new car loan in sept that we are ahead with payments we`ve been making 2 payments per month -why i ask myself that now...she says it doesn`t show that on credit report it only shows balance and balance of that loan is still not 50% below loan...ok me-i have nothing major on mine besides i was in the national guard for 3 years and got an honorable discharge but the military wants their bonus back...which is 1800 and i`ve been writing to diff ppl to put me on some kind of payment plan noone ever responded...so now i disputed that myself on experian.com...my husband has a steady job income for 07 was 21000 and for 08 34000...anyone has any idea how to go about a first time homebuyer loan ...we only have about $5000 to put down if required...pls any help would be greatly appreciated...
Quote:
Originally Posted by SKB View Post
"hi...i have been reading through posts for the past 3 hours and can`t find anything similar to my situation."

Try reading for three years and while you are reading do some saving, start with 20% on your income each month.
Keep making extra car payments, with those credit scores I would dread to see what the interest rate is on that car note.

Stop being offended by what you read on this board, it is obvious to me that you have not done enough reading or learning as if you had you and hubby would not have sub-prime credit scores.
Just because you are young there is no excuse for it.

"i have nothing major on mine besides i was in the national guard for 3 years and got an honorable discharge but the military wants their bonus back...which is 1800 and i`ve been writing to diff ppl to put me on some kind of payment plan noone ever responded...so now i disputed that myself on experian.com."

What exactly are you disputing?
You had been given a signing bonus and you didn't meet the terms of the bonus and now it is a collection account on your report?
If you have 5k pay the 1800 back and start saving like I mentioned already.


Try reading:

The Millionaire Next Door by Thomas J. Stanley
The Richest Man in Babylon by George S. Clason

These two easy reading books will help you to understand why some people have money and others NEVER have any money.
Don't keep repeating the same mistakes that you have been doing at your young age or you will always be sub-prime and at the mercy of banks and bill collectors.

Be smart and start saving and spending wisely.

Stop being offended and take heed what others have tried to tell you.

Stop trying to find someone to give you the quick answers and easy solutions and start doing the hard work by sacrificing and WAITING until your situation is 100% right. There will always be loan sharks out there willing to lend to sub-primers at high interest rates and horrible loan conditions. Stop falling into that trap and take control of your life and future.
Quote:
Originally Posted by mirela26 View Post
lol...it is amazing how many negative people we have these days...first of all SKB i wasn`t offended as to what others have replied as their opinion really doesn`t matter to me since he wasn`t helping out...second -u either don`t know how to read well or something else is wrong with you...i disputed my military charges from my credit report because i wrote to 3 different adresses for 5 months noone ever responded...i wrote them because i wanted to pay it off smarty not for any other reason...i only have one more charge off and that one is falling off next month so is my husbands and third off i don`t take being young as an excuse it just if i knew back then what i know now i would`ve made diff choices...and you negative people on here make no sense if you can`t help why the hell are you responding..i didn`t ask for your opinion--i asked those who have been in my situation or mortgage brokers who have lenders who work with ppl like us... i know i have to fix things in order to get a loan or a good interest rates but fixing things doesn`t happen overnite...neither does finding a home or getting approved by a lender...try reading a book>?pls go on you made no sense in your reply...and just for your info in the last couple of days i did find brokers that have lenders who work with our credit score and on top of all its an fha loan with a 6%interest rate...and even if i had 20000 on hand i would never put that DOWN on a home makes no sense to me...why? just so that in a couple of years those 20000 could go down the drain when my mortgage is upside down...my sister-in-law put down 15000 on a 156000 home and now her home is worth 100000...how did that down payment help her?>so thanks for your reply but just like i siad before if you cant help pls don`t reply...
Quote:
Originally Posted by Sam82 View Post
You were given help. The answer is that right now you are not in the position to buy a home because of your credit score. A couple of people wrote that. They were not being mean, they were being honest. You need to live with the advice and work on your credit score. Why is that so hard for you to understand? I can't believe that you are saying that people cannot read or write well. If that isnh't the pot calling the kettle black, I don't know what is.
mirela, people were not being negative. they were being honest. something that you need to be with yourself. dispute $1800? for what?! as another poster had stated if you didn't fulfill the requirements of the contract (which it sounds like you didn't--and don't try to paint it a different color. . .i did my time in the military--i know the requirements), you need to pay it back. use that $5K and just pay it off. acknowledge and move on. and seriously, if you didn't understand the terms of that contract, are you truly ready to undertake the responsibility of a 30-year mortgage? and did you follow up the letters with phone calls to work out a payment plan?!? hmmm?

the posters on here were making PLENTY of sense. again, to repeat what has been stated here before: you're not going to get the magic spell to raise your credit score overnight. which seems painfully clear is what you're looking for.

you know, there are good books out there. you SHOULD try opening a couple of them and get yourself educated. skb--like everyone else on here--was trying to help you out. mirela, don't look a gift horse in the mouth. if you're not going to like the answers, don't ask the questions.

and before you go off AGAIN, i have read and re-read your original post and subsequent posts (and it truly wasn't the easiest task) to understand your predicament. you really need to just fix your finances before you think about applying for a mortgage. as i said previously, fixing that will be a huge accomplishment for you and make things a heck of a lot easier in the long run for you and your family. you know why we're in this economic meltdown, right? because people such as yourself who weren't honest with themselves about their credit and what they could ACTUALLY handle financially. . .and the unscrupulous bankers who preyed on their naivete. educate yourself, girl. go read a book. and since i'm at it, look for books by eric tyson. he's published some excellent books about personal finances, home buying, mortgages and such.
 
Old 03-07-2009, 09:02 PM
 
Location: Glendale
1,243 posts, read 2,354,414 times
Reputation: 843
Our broker required we paid off, in full, a couple of lines of credit we had open...also, buying a car drops a FICO. Through a lot of hard work we paid almost everything off. It takes time to raise your score. There are times you cannot close until certain terms and conditions are met.
If you wait a while and get your scores raised then your interest rate will go down...etc...
Lots of good info has been sent your way.
And to own a house you have to have $ after you buy it...something always breaks
Good Luck!
 
Old 03-07-2009, 09:17 PM
 
148 posts, read 493,060 times
Reputation: 83
Mirela, is there something we're not getting? Is there a situation where you CAN'T rent anymore? Because I'm thinking surely if someone is willing to give you a mortgage, then you can find a place to rent for say 6 months. Or is it there is a place you want that you've been waiting for that is on the market right now? Even so, I guarantee there is more than one house out there for you to fall in love with. Otherwise, I'm not understanding the "gotta have it NOW" urgency. If you want to take advantage of the $8000 first time homebuyer tax credit, you still have time. You have until Dec 31 to close on a home. In six months you can dispute and pay off and build your credit to have a higher score and a lower interest rate. NO ONE IS PAYING 6% INTEREST NOW!! Don't you see? That's the same mentality that kickstarted this housing crisis honey. Folks not caring if they have a higher than normal interest rate and payments, as long as they could get in NOW. Now, you've already defaulted on a military bonus... but if your bf hasn't and he's otherwise eligible for the military, the Army Reserves is doing a $20,000 bonus right now. Not sure how long it will last, but it's good for right now. Tell your significant other to join, y'all take the bonus money and pay off EVERYTHING, then SAVE the rest for your downpayment.
 
Old 03-08-2009, 01:22 AM
SKB
 
Location: WPB
901 posts, read 3,105,490 times
Reputation: 320
Quote:
Originally Posted by mirela26 View Post
lol...it is amazing how many negative people we have these days...first of all SKB i wasn`t offended as to what others have replied as their opinion really doesn`t matter to me since he wasn`t helping out...second -u either don`t know how to read well or something else is wrong with you...i disputed my military charges from my credit report because i wrote to 3 different adresses for 5 months noone ever responded...i wrote them because i wanted to pay it off smarty not for any other reason...i only have one more charge off and that one is falling off next month so is my husbands and third off i don`t take being young as an excuse it just if i knew back then what i know now i would`ve made diff choices...and you negative people on here make no sense if you can`t help why the hell are you responding..i didn`t ask for your opinion--i asked those who have been in my situation or mortgage brokers who have lenders who work with ppl like us... i know i have to fix things in order to get a loan or a good interest rates but fixing things doesn`t happen overnite...neither does finding a home or getting approved by a lender...try reading a book>?pls go on you made no sense in your reply...and just for your info in the last couple of days i did find brokers that have lenders who work with our credit score and on top of all its an fha loan with a 6%interest rate...and even if i had 20000 on hand i would never put that DOWN on a home makes no sense to me...why? just so that in a couple of years those 20000 could go down the drain when my mortgage is upside down...my sister-in-law put down 15000 on a 156000 home and now her home is worth 100000...how did that down payment help her?>so thanks for your reply but just like i siad before if you cant help pls don`t reply...

Apparently by the way your posts have been written it is you that seems to have some difficulty in that department.

I was not negative just stating the facts and giving you some very good advice that you simply took offense to. What is wrong with reading books on how to get ahead financially?

Do not try to make a personal attack of my very good and honest advice to you. BTW, this is what I do professionally.

Like I said there are always loan sharks to take advantage of people that don't bother to get educated. A six percent rate is HORRIBLE.
If you had 200,000 you would be able to pay cash for a home. What you said was shocking to say the least about simply walking away from a responsibility, simply shameful.

That 34,000 salary that you quoted would get you into a home worth around 85,000 but with your current debt load I highly doubt you would be able to afford the payments. Never mind the closing costs and mortgage insurance and taxes, maintenance and living costs, food etc.

Anyways, by the sounds of things you have it all worked out the way a typical sub-prime person thinks. There is no getting through to that, go ahead and make your mistakes as they are what you have conditioned your mind and spirit to. Gotta have it now and "howmuchamonth". Hey, we can afford that, no payments for a year!!!!!
 
Old 03-08-2009, 10:41 AM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,102,432 times
Reputation: 952
I wouldn't say that a 6% rate is horrible. Still at historical lows and only 0.5% worse than a FHA loan for a strong FICO borrower. Around 0.75% higher than a strong conventional borrower (good FICO and 20%+ down).
 
Old 03-09-2009, 12:28 PM
 
34 posts, read 254,649 times
Reputation: 35
yes the positive ones were very helpful...i just don`t get the point why everyone is pushing for us to save money and put down 20%...i know that helps but i don`t know in 5-10 yrs i may need a bigger home and want to sell this one and then those 20% ..i dunno to me its a waste of cash that you work so hard for to save cuz you don`t get it back when you sell your home so why put down that much...and stop thinkin that i get upset over ppl`s opinions...i don`t because it really doesn`t matter to me,,everyone IS entitled to their own opinion ...i just didn`t post this thread to know everyones opinion i did it to see if i could find someone who has lenders who are willing to lend to ppl like us,,and thank god there are...and for you to think that 6 % is a high interest rate is plain said REDICULOUS...now you go to the creditboards and read thru what kinda interest ppl have from last yr and 5-6 yrs ago...to me 6 % is as best as we can get right now...and if i can get that i`d be happy because after one year of paying the mortgage on time who knows maybe we`ll be eligible for a lower rate...i do appreciate your comment on the mortgage ins premiums which i don`t know much about we are pretty new to this process so i`m gonna read into this...
 
Old 03-09-2009, 12:52 PM
 
34 posts, read 254,649 times
Reputation: 35
and SKb...where the hell did i post that i would walk away from resposibilty if times would get tough...GOD help the people YOU give advice to..lol
"What you said was shocking to say the least about simply walking away from a responsibility, simply shameful. "
from what? i know the military must`ve sent out letters for these 1800--at that times i wasn`t in the position to pay back now i am...and i want to...but NO response...called 3 credit bureaus to see what they have on file they all have 3 diff adresses but no Ph #...wrote to all 3 adresses no response...so what should i do...just leave it on the credit report to punish myself for my bad situation of not being able to pay back when they needed to...i disputed it because maybe that way someone will actually respond back and i could finally pay them back...
and mrsclmn maybe i wasn`t being clear on things...we are still renting have an open lease til may...probably will do 6mo renewal i dunno...but its not a must have it now or what not ...maybe i simply posted my situation wrong and thats why all the negative replies...
 
Old 03-09-2009, 01:07 PM
 
Location: Wherever I am
455 posts, read 723,167 times
Reputation: 459
One major thing to consider regarding the down payment. Say you put down...since the #'s already out there...20% of the loan amount. Your monthly mortgage payment would be CONSIDERABLY less than what it would if you only put down...say 5%. With that being said, it gives you a much greater possibility of being able to save $ over time so that you always will have some extra cash flow...and can save for your next down payment on your next home...or home improvement projects...or getting a new car...just about anything. Just think about it. Don't jump into something that you sadly may regret later...is all we're saying. Just trying to help look out for ya since you asked for some input. Sometimes things may come across as sounding rude or demeaning, but sometimes when it's true, it's hard to put it any other way...sugar coated advice never gets the true point across, ya know? Anyhow...just weigh your options, find out what your monthly payment will be on your mortgage if you're still set on getting this house. Sometimes reality hides in those #'s and you don't know until it's too late. For example, we just bought a new home. We had a GFE that said that our monthly payment would be one amount (or close to it), and it wasn't until we closed that we knew exactly what the amount was. It was only $100.00 more than on our GFE, which wasn't an issue, but for some...an extra $100/mo could lead to trouble.
Just saying...think about it. And good luck!
 
Old 03-09-2009, 01:12 PM
 
264 posts, read 850,336 times
Reputation: 215
Quote:
Originally Posted by mirela26 View Post
yes the positive ones were very helpful...i just don`t get the point why everyone is pushing for us to save money and put down 20%...i know that helps but i don`t know in 5-10 yrs i may need a bigger home and want to sell this one and then those 20% ..i dunno to me its a waste of cash that you work so hard for to save cuz you don`t get it back when you sell your home so why put down that much
I really don't mean to insult your intelligence, but I can't understand your thought process when you post stuff like this. If you sell your house in 5-10 years, you're still going to have to pay off the mortgage on that property. Having more equity in your home when you sell it should be your goal, because that's less money you need to pay the bank with when it sells. The only way you "don't get it back" would be if your house declines in value. Even if that's the case, you'd still have to come up with the money to settle the mortgage. Putting down less money upfront isn't going to save you from losing money on a depreciating asset. It's actually going to make you lose even more money because you're paying more interest to borrow more upfront.

Futhermore, I find it worrisome that somebody in your position is thinking of buying a starter home for "5-10" years and then moving on to something bigger. I have a 780 credit score and had enough for a 20% downpayment to get a conventional loan, and I only bought this house because I'm prepared to stay in it for a long time. It is extremely risky to buy a house and expect to sell it within 5-10 years in this market. I really don't think somebody in your position should even be considering something that dangerous, especially when you're so concerned about house prices falling.

Quote:
.and for you to think that 6 % is a high interest rate is plain said REDICULOUS...now you go to the creditboards and read thru what kinda interest ppl have from last yr and 5-6 yrs ago...
The national average is 5.17% today, so a 6% interest rate is 16% higher than the national average. That is extremely HIGH. What the interest rates were 5-6 years ago is completely irrelevant to the current climate. In case you haven't noticed, we're in a deflationary recession. When houses were appreciating at ridiculous rate, a 6-7% interest rate probably wasn't so bad. When prices started declining, interest rates had to adjust downward. It's all relative.

Quote:
to me 6 % is as best as we can get right now...and if i can get that i`d be happy because after one year of paying the mortgage on time who knows maybe we`ll be eligible for a lower rate...
It's not a matter of simply being "eligible for a lower rate" and then getting one. For one thing, it can cost a lot of money to refinance an FHA loan, especially if the originator of the loan sells your mortgage to another company. Secondly, the rates could be higher a year from now. Thirdly, an appraisal could show that your house declined in value, in which case you'd be unable to refinance.

Quote:
i do appreciate your comment on the mortgage ins premiums which i don`t know much about we are pretty new to this process so i`m gonna read into this...
You definitely need to be aware of the mortgage insurance premiums. This is insurance for the bank that you are paying in case you default on your loan. It's also a lot harder to deduct from your taxes then plain old interest. If at all possible, you should avoid it.
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