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Credit Finally cleaned up, should I make the plunge?


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I have spent the last three years trying to undo the damage that 10 years of financial mismanagement brought on. This site and the people on it have helped me immensely and I cannot thank everyone enough. I am within site of my ultimate goal, buying a house. Unfortunately, I am apprehensive about the whole lending process and have a huge fear of rejection based on my past experiences of being declined for credit. I was wondering if anyone could tell me what I might expect based on my situation:

Current Scores

Equifax 664

Experian 725

TU 682

After getting my credit report cleaned up I have two small paid collections on my report ($96 and $206). The biggest damage is a satisfied judgment from Arrow Financial in 2001 for $672 for a credit card from Direct Merchants Bank (double whammy on the credit report).

I have 5 credit cards with a total available credit of $12000 and a current balance of $150. I have not been late on any of these items and have had most of the cards for two years or more with the newest one being almost 10 months old.

I have a car lease that I am almost a year into with no lates, and a paid off car loan before that which had no lates for three years.

I have saved up a good chunk of money (close to $30k) although I would not like to use ALL of that for a down payment.

I guess my question is, what obstacle(s) will I be facing when applying for a loan? I would rather NOT go the sub-prime route and if I have to wait I could, but with interest rates going up, what I could get now as a sub-prime, might equal prime rates a year down the road.

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MidScore of 682.

No open collections.

You're prime. No questions asked. You even qualify for a no-doc (not recommended - higher rates) loan.

From what you posted about, you have zero worries (creditwise)

do you have a purchase price range figured out? Does your income support that purchase price? That's really all it sounds like you need to focus on.

Good Luck!

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Some other things you will need to have:

Assets = 2 months PITI (Principal-Interest-Taxes-Insurance)

Job history = 2 years same company or same line of work.

To get the best rates: 5% down as a minimum, but rates don't go up much if you need 100% financing.

Hope that helps.


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