Monday, September 26, 2011

Dum de dum..dee dum....

Yup...we are still here...same house.  Buying a house has become so difficult it should be a sport at the Olympic games!  Not to mention that psychological help should be covered with an insurance policy when you are buying a house.  Its mentally and emotionally draining.  Sometimes I feel like our broker just loves to play the cat and mouse game.  He tells us one week "Oh things are looking great...you should be in your new house in no time" the next week "Oh I don't know...doesn't look so good"  UGGHH...DAMN IT MAN MAKE UP YOUR MIND!!! Seriously though.  If you are looking at buying a home (and its going to fall under FHA, VA or HUD) make sure you have these things covered before you go getting attached to a house!


1.) Check your credit report and your FICO score. Make sure your score is over 640, first of all. It will save you lots of headaches. According to our broker its harder to get accepted if you have less that. Also... If you see that something is fishy there FIX it!  We found that a company reported that we didn't pay off an account when we had. Well, sort off they said we had settled and we didn't...so we had to fix that.  Here's the thing...the agencies mentioned above (HUD, VA and FHA) do not want to see "SETTLED DEBT" on your report.  They don't like it and makes their skin crawl...so if you DID settle a debt...sorry to say this...your going to have to go and pay it all off...as much as you might not want to...that's how its going right now. 


find your Debt to credit ratio. Because Marty helps run the family business...he had a business card. Well that card was under his SS and guess what...IT HAD OVER 20k on it!  There was another business card with over 10k on it...so that's was not good.  Of course the business paid it down...but it didn't look good on us with that much on our report but Marty makes just as much as that!??!!  LOL...So know how much you owe vs. how much you earn. 

Pay down those cards as much as you can.  Keep low balances if best...keep ZERO balances.  You may use one card for simple things...but make sure you don't have your cards so close to or at the limit.  Oh and DO NOT close those accounts.  That can hurt your score as well and your credit to debt ration.  What the lenders want to see is responsibility.  They want to see that you have all that credit available to you but you are not using it (or maxing out your cards) .  Its the concept of having something yummy in front of you but having the power to not eat it...same concept!

If you pay rent right now and are in an managed apt complex...well you probably pay with a check.  Try not to pay with cash...trust me it will come back and bite you in the behind.  Do not pay with MO it might do the same.  WE did not pay with check this past year because we would set aside the money in a cash box.  And we would pay cash.  So when it was time to give them our bank statements...we had to explain why our rent was not paid from our account.  At least for 2-4 months pay with a check, directly from your checking account. 

I have also found that you may need to write letters to your lenders in regards to certain expenses.  If you pay for daycare...you may have to write a letter.  If you don't deposit all your paycheck, you may have to explain why, in a letter...we have written so many letters that we should turn to professional writers!   We are not alone...we were told by our landlord that she has friends who are also having to write letters.  Also watch your spending habits...you will have to give them at least 2 current bank statements and if they see something they don't like guess what...ANOTHER LETTER!!!  They will be watching your spending habits like a HAWK! 

So there ya go...some advice from someone who is still waiting for a yes or no.  For now, I have decided to open my shop only locally. I need to generate income....We had to pay off some debt to satisfy the broker and it did set us behind on other bills.  Do this with time...and I wish we did have time.  Normally it would be a 3 month ahead of time deal, but we were only given about less than one.  FAIR...no...but hey we had to do with what we had.  At least...you have my advice and you can prepare for buying a house EVEN IF YOUR NOT THINKING of buying a house...make sure all that is taken care of.  We were not thinking of buying a home at all, we were thrown into the fire head first and unknowingly.  We would have loved to have rented but homes for our size family are VERY EXTREMELY HARD to come by...and when they do come up...they get snatched up just as fast. 

Well, here is to waiting...dumm dee dummm..dee dum! :o)

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