Is 18 months too early?

[tyabeau2]

After many years of paying rent we have decided we want a home of our own. Would 18 months be too early to start the mortgage process? Here is our story...bear with me it's long,

 

Back in December of 2012 we closed our accounts at a traditional bank and moved our accounts to a credit union (bank was giving us no love even when we never overdraft in the 5 years with them). September of 2013 requested a CC from credit union and received it. Been keeping uti under 10% paying off each paycheck. November we received a car loan with credit union for a 7.99% interest for $33,000, paying on time, never late. Husband is an authorized user on brother's AMEX to help build credit.

 

In other words we didn't have good credit. Husband's "baddies" will fall off in 2015. My baddies were all medical from hospitalization in 2012. Used WhyChat's method and they are all gone! In September I went on a CC spree and obtain a Capital One CC, Wal-Mart and Care Credit (joint with husband) for me and for husband a Valero, Care Credit and Target. Will keep balances down to at the most 1% and pay off each month.

 

My credit scores are as follows: EQ 637, EX 615, TU 611 (Very excited about my scores, this time last year they were all in the low 500s!)

Husbands scores are as follows: EQ 600, EX 559, TU 614 (He has 5 baddies, scheduled to fall off by 2015)

 

We are planning on using our Credit Union since we are building a relationship with them, with the car loan and cc. I was also planning on April of 2015 obtaining one more CC, not a store card, to help our portfolio. Should I or should I not???

 

I need advice on what we need to do to bring our scores up by May of 2016 to obtain a mortgage at a good rate. I hear that 620 is the rate some loan companies will approve. I want at least a low 700 or very high 600 before we start looking. Would love a 720 to 750 on all! My husband's score will go up once the "baddies" are gone. I am worried about how recent our credit will be and if that would be an issue on obtaining a mortgage.

 

Need to also mention, both of us have two jobs and nickel and diming everything to save at least 20% to put down on a place. I've been at my current full time employment for over 9 years, husband just switched jobs in October, 2013 so he has been there a year.

 

Would we be able to obtain a mortgage loan in 18 months???

[Deadbeatloser]

It sounds to me like you're on the right track. If you keep going the way you're going I can't see why you wouldn't be able to get a mortgage in 18 months.

 

I would go to your CU now and ask what their requirements are. Then you know what you need to hit. Every bank has differnt requirements so knowing what your prefered lender wants will help you focus your goals.

[tyabeau2]

It sounds to me like you're on the right track. If you keep going the way you're going I can't see why you wouldn't be able to get a mortgage in 18 months.

 

I would go to your CU now and ask what their requirements are. Then you know what you need to hit. Every bank has differnt requirements so knowing what your prefered lender wants will help you focus your goals.

 

Thanks. We'll go see them to see what is needed. I'm just worried about how recent everything is.

 

I was pondering getting one more major CC in 6 months...Should I? Or should I just continue with what we already have???

[EricDET]

How many revolving cards do you have now?

[tyabeau2]

Me I have two major, two store and one authorized user

 

Husband has one major, three store and two authorized user-one major and one store

 

we are joint on the one cc, and joint for one store

[EricDET]

If you just got all those cards this September I would hold off an getting anything else for a while and let the accounts age. If you don't have any negative items on your credit your score will rise significantly in those 18 months. Just keep the utilization in check and avoid having balances on multiple cards when you do in fact have it pulled next.

 

If a mortgage is your main goal then I'd avoid getting any other credit of any type until then.

Edited October 23, 2014 by EricDET

[tyabeau2]

If you just got all those cards this September I would hold off an getting anything else for a while and let the accounts age. If you don't have any negative items on your credit your score will rise significantly in those 18 months. Just keep the utilization in check and avoid having balances on multiple cards when you do in fact have it pulled next.

 

If a mortgage is your main goal then I'd avoid getting any other credit of any type until then.

 

I will do. I'm getting excited about becoming homeowners. I was against it at first (too many repairs in the rental and its easy to pick up the phone and tell someone to fix it without $$$ out of our pocket) but when our landlord raised the rent and additional $250 ($1250 to $1500) and we figured we are paying more than what we could if we bought a home we decided our next step was owning a home. We both even obtained two jobs each to come up with the down payment.

 

We made a goal to be homeowners by 2016!

 

Thanks for the advice!