High Credit Card Balances = Rejection?
My biggest problem with trying to purchase property seems to be high credit card balances. The only real 'negative' on my credit report is a chargeoff from a retail credit card from 2000, settled last year.,,
But, my total credit card debt is around 15K, down from over 28K back in 2000.
My FICO score is around 620 & my income is $45,000. I have around $30,000 to use as downpayment, plus I can probably pay off most of the credit card debt.
I would like to buy a condo or co-op for around $150,000, put down 20% and pay off the CC debt at the same time.
I am looking to buy a condo or co-op in the NYC area. I have been told that my chances of getting an apt. are very, very low (since you must obtain board approval prior to closing) & I have noticed that suddenly the real estate agents & loan officers become 'unavailable'.
If I pay off the credit card debt, can I get a rapid rescore?? or do I have to wait 2 years to prove that I can 'stay clean'???
Paying the CC's off completely may look like you used a credit consolidation loan and it may negatively effect your credit score. But, if you pay down your credit cards by half the balance, then it should bring up your score higher than 620. I don't see why the loan officers are "unavailable"....you should look for another mortgage broker because there are loans out there...
Tanya
NickL you may want to consider SubjectTo investing. You don't need credit and can possibly get by with $10 down to control the property. Check out the SubTo forum for more info.
I feel that paying off your credit cards would be smart and it will raise your credit www.score.It lowers your debt ratio. You need to find anew mortgage broker who will work with you.
The senario you describe is not one to run away from phone calls. With a 620 middle score you would be eligible for a loan. If you have the down payment and the income their are programs for 103-107% with those ratios. There must be something else wrong or you are dealing with the wrong pople
Real Estate Agents and Loan officers are always unavailable. Better get use to being a pest. It is part of this business. Find out exactly what you can qualify for to buy.
Brenda