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house shopping


JTsdaddy
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I have 3 things on my CR + a BK 13 I wanna start looking for a house.

The first is a Medical $30.00

2nd is Flower shop for 87.00 which I dont recall ever singing for

3rd Medical urgent care for 107.00 .. none of which are to fall off soon..

Bk is 2 years old .. what and how should I proceed.

Also a cell phone bill for 1189 which is 7+ years old

I do have several Postive transactions. but my facko score is mid 5's

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I hate to be negative, but from the info. you have provided, it looks like a house may be a reach for you right now.

I would start by purchasing an actual fico. (myfico.com).

Then I would start working on the oldest negative items. Why is the cell phone still reporting if it's 7+ years old? Dispute it as obsolete.

Second I would contact the providers on your medicals and offer to PFD and/or consult the "Why Chat" method and see if it's possible to pay and get deletions for Hippa violations.

Third I would research and/or DV this flower shop. Most flower shops these days bill to MC or Visa and very few small businesses carry their own accounts...so that item surprises me. But that's kind of irrelevant. I would give them a call. If it turns out to be yours, offer to PFD. Be contrite.

As for your BK...I really can't say. I'm sure others will chime in.

You will also need to build a mix of positive credit. You mention some positive accounts. Do you have an auto loan or any other type of installment account? How old is your oldest account? Do you have any post-BK prime credit?

A house is a good goal. But I think it's in your best interest to put the plan on hold, still holding it as an excellent goal to work toward. But I shudder to think of the terms you will be able to get (if you can get financing at all) considering your situation right now. Hang in there; things will improve with work and time.

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What kind of mortgage terms will you get? How about 6.0% on a 30 year fixed rate mortgage with 3% out-of-pocket.

FHA will insure loans for people with mid-500 scores, but you need other positive factors.

If those collections are recent and you're able to PFD, you'll be able to raise your score a bit. It all depends on how recent they were. Unfortunately, my guess is that you also have some recent late payments on your open accounts. That would push your score down. Keep in mind that your "score" is mostly affected by your last two years payment history. Anything beyond that looks bad, but doesn't affect your score much.

The big collection is too old to be a problem. They may ask you to write an explanation letter for it. Better bet is to get it removed before applying. You'll also need a letter for the BK but you can get a mortgage after 2 years from the BK.

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would paying the CC balance to a zero balance help..

also should I try to get another line of credit to help a little bit

Certainly getting your balances down below 25%-30% would help.

I don't think anyone can give credible advice about getting a LOC without knowing the other details of your CRs. What do you have besides the negatives you mentioned?

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