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Late payments, positioning for mortgage


prosumer
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The last post in this topic was posted 3438 days ago. 

 

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I think I'm close to seeing the light at the end of the tunnel, but I'd like some advice on a few things. Long-ish post.

 

I have 3 negatives left on my reports, 30+ positive accounts. For simplicity I'll use the credit.com snapshot thing.

 


 

Positive accounts 32 Negative accounts 3 Total revolving balances $8,957 Total account balances $38,706 Total minimum payments $483 Amount past due $0 Revolving accounts 8 open / 11 closed Loan accounts 2 open / 12 closed Undefined accounts 1 open / 0 closed Public Records 0 Inquiry records 5 recent Collection accounts 1

 

 

The negative accounts are a charge off from a bank account I forgot I had which ran an overdraft, a collection account that will fall of this May, and an old Wells Fargo . I've written the bank, called, begged and pleaded but they won't alter it at all. Wells Fargo also hasn't been very helpful. I sent a GW letter, and they sent me back the entire payment history and basically said "tough". A total of 16 late payments all on the WF card, 6 of them greater than 90 days.

 

Wells Fargo and the charge off from the bank are both 4 years old now, and no late payments since then on anything. From November through January, I did the following. Opened a NFCU Visa, limit of 10K now. I used the BT offer to move all my revolving debt do that card. I owe 4K on it and am putting 1K a month to it to pay it down quickly. For this month it is reporting 7.3K but I paid 3K to it with the sell of a motorcycle. USAA for 4K, it's my daily card and I PIF. Walmart, Victoria's Secret, Chase, all for $500. I still have my Star card with an $8700 limit, no balance. I use them every few months and PIF, though I usually pay them as soon as the charge shows so they haven't reported a statement balance. Harley-Davidson motorcycle loan for 16K, NFCU auto loan for 15K.

 

I plan on applying for a mortgage next summer so want to have a good amount in savings even though I'll be doing a VA loan. My scores at the moment are 673 through Walmart, and 675 through DCU. I'd like to be in the 700s, preferably 730+ as PenFed has really good rates and I know they want a higher score.

 

Will I reach my goal by then? I don't plan on applying for anything new, if I don't get auto-cli then I just won't ask. Also, should I give up on Wells Fargo and the bank or should I keep sending them goodwill requests until they either do it or send me a court order to stop?

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It's my understanding that VA loans don't evaluate credit scores, but instead are based upon an evaluation of credit history. Most important is a rational explanation for any adverse reporting information (specifics of past financial difficulties, etc). All approved VA loans are eligible for the same rate.

 

If you have 4 years of clean history, and can rationalize past financial hardship, I'd say that you were well positioned to apply for a VA loan at your earliest opportunity to shop for a property.

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It's my understanding that VA loans don't evaluate credit scores, but instead are based upon an evaluation of credit history.

 

I believe USAA told me that there was a minimum score, and I've read that it's somewhere around 620. Edit- Just did some researching and someone on the myfico forums said they were told by PenFed they would need a median score of 680, thread from 2009 so who knows. I was unaware that VA loans were all approved at the same rate, that's awesome.

Edited by prosumer
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It's my understanding that VA loans don't evaluate credit scores, but instead are based upon an evaluation of credit history.

 

I believe USAA told me that there was a minimum score, and I've read that it's somewhere around 620. Edit- Just did some researching and someone on the myfico forums said they were told by PenFed they would need a median score of 680, thread from 2009 so who knows. I was unaware that VA loans were all approved at the same rate, that's awesome.

They definately have minimum score requirements and they are not all approved at the same rate, it all depends on which lender you chose to use plus score and history. I used wells and there minimum was 660 middle score and they didnt care that I had 2 old med collections. Penfed would be a higher requirement, you should go with a lender which is more likely to approve you with a lower score and a collection or 2. You can always refi later to a better lender when you have a totally clean report.

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I won't have a collection by the time I apply next summer, it will have fallen off. The lone charge off is a paid charge off. I'm hoping by next summer my scores will be up in the 730s or higher so I don't have to worry about a refi. Just wondering if I'll be able to get there given the credit profile I listed in my first post.

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