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will i qualify for a loan?

Posted on: 09th Jun, 2010 10:04 pm
Will I be approved for a 1st time buyers loan for $189,000?? I have 16 credit items on my credit report, with 3 negative items, which is really (1) the same charged off credit card described as a charge off for the original $4300, then as a judgement for the $4300, then as a charge off for $8300 because they're also showing it with running interest. (from 2005) All of my other credit items are 'current/ paid as agreed' with 2 successfully paid car loans. This is my dream home and I'm petrified I won't get the opportunity to snag it. Is there any hope. I went to the lender today and she said she gives it a 70/30 (in my favor) shot because she's seen worse be approved. My fico score is 642.
Hi sjdd,

As a single negative item is listed thrice in your credit report, there are chances that the lender will consider this as 3 separate negative item. You will have to contact your creditor and dispute the items so that it is reported as 1 negative item in your credit report. With 3 negative items on your credit report, it will be difficult for you to qualify for a loan.

Take care
Posted on: 10th Jun, 2010 02:43 am
The credit score is ok. As long as your debt ratio is ok, you should be able to qualify.

You will have to pay off the judgment before closing
Posted on: 10th Jun, 2010 07:42 am
As long as your DTI's are below 50%, you should befine. The major issue I see is providing proof the judgement has been satisfied.
Posted on: 10th Jun, 2010 01:43 pm
Hi Sdjj,

You have a good credit score to qualify for a loan. However, as you said there are 3 negative items in your credit history, I would suggest you to consult your lender and clarify this dispute and tell them to report that to the credit bureau. I would also suggest you to wait for sometime and try to improve your credit to at least 700 - 720 before applying for a loan.
Posted on: 21st Jun, 2010 08:17 am
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