I'd try to raise your scores to about 650 for the middle one (out of
three). Then a good mortage broker who has standard deals with banks
should be able to get you a 30 year fixed for 5.75% today (which is
good).

The kind of errors you have will influence how much your score goes
up. What are these errors?

I tried to find some free score change simulators (it'll give you an
idea of how things will change roughly), but I couldn't. I thought I
had seen them before. It'd be a good and easy program to write.

This whole credit report/score thing is a major scam. Unfortunately as
consumers we all seem to live with it as a necessary evil.

--Ram

brotherjohn <brotherjohn1948[at]hotmail.com> wrote:

- quote -


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding.

The terms of the loan were 3 years and then a balloon.
I actually have less in debt than I had in Sept. when the house was
closed. We had an unforeseen catastrophe at my business that had me
almost closed down for 2 1/2 months last summer and I had no choice but
to use credit to pay overhead and bills. PLUS we had a new baby right
before the house closed.
How much would my credit score be raised from getting the 2 errors
removed?
I would have already begun talked to other banks, but doesn't it raise
your score to have people constantly accessing your credit report?
As for my bank, one loan officer told me to wait 6 months another told
me a year to re-apply for the loan. I'm not sure what they were basing
this on as opinions varied so widely between the two officers.


- quote -

================================================== ====================

I'd suggest two or three concurrent things:

Get a credit card in your wife's name and use her SS# to get account.
Cosign if you have to. If you buy a car, put it in her name. This
will establish a credit history for her. You will see results of this
2-7 years down the road.

The sooner you refinance the better the interest rate is my GUESS. No
guarantee I'm right, but with rates rising, Conventional wisdom would
be to refinance at your earliest opportunity. Should be noted we
bought a house in 2000 and are about to buy another, at the rates now
are lower than they were 5 years ago. But 5 years ago I didn't
consider 8% a bad interest rate. It wasn't great, but I'd heard of
worse.

I suggest lending tree.com and a few other online brokers (eloan) to
get comparisons for refinancing at minimum. Ask friends for referrals
as well.

When is the 3 yr period up? Aug of 2007, right? You have to weigh the
pros and cons of how much the credit score improvement will help and
what loans a bank will approve you for.

In article <1105721268.130653.48340[at]z14g2000cwz.googlegroups.com> ,
"brotherjohn" <brotherjohn1948[at]hotmail.com> wrote:

- quote -

While it was nice of the bank to write the loan for you, given
your credit score and debt, I am not sure if this was a blessing
or a curse. All kinds of bad things seem to crawl out from under
rocks when you get mortgaged up that tightly. But you sound like
a smart hard-working person, so I think you can work yourself out
of this problem.

- quote -

How badly do you want to clean up this debt? If you want to
badly enough, you or your wife can take a 2nd job on a part
time basis. An extra $1000 a month coming in will do this in
a year and a half. Even an extra $500 a month would make a
real difference. In addition, it would keep you busy so you
don't get tempted to spend yet more money.

- quote -

The Fed has indicated that they want to move interest rates up
at every opportunity they have this year. Look for up to 5
different rate increases of a up to a total of 1.5 points.

- quote -

You didn't give all the terms of the loan. Is it 3 years and then
it becomes an adjustable? Or is it 3 years and a balloon? Or is
it a 1 year ARM with a 3 year balloon? Even then, I wouldn't worry
too much. Most adjustables have a cap on interest rate increases.
You are looking at 7.5% worst case. Yeah, it will hurt a little
more, but you should have some or all of that debt paid down by
then, so you will at least have the cash flow to support the house.

- quote -

I'd go back to your current bank and ask them that question.
They will either give you an answer, or they will tell you
what you have to do. If this is a balloon, you want to start
the re-fi yet this week. The reason is if something else bad
happens, you might not qualify for a new loan, and then end up
losing the house.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

I bought a house in Sept. with a credit score of 620 the bank could not
get me in a 30 yr. good rate mortgage. Due to the fact I have a good
standing with the bank they gave me a 3 yr. at 5.75% no points, no
closing cost etc.

There were 2 errors on my credit report which I got fixed immediately,
but I still have $7,000 in business credit card debt that I'm paying
off. I am self employed and had a crisis where this could not be
avoided. The only other debt I have is business related as well in the
amt of $5 to $8 in line of credit that fluctuates from month to month.

I know this was like closing the barn door once the cows are out now,
but unfortunately this was the case. Plus, my wife had no credit
history at all and didn't add to the score.

Now, I'm doing my homework to try and get a plan on the best way to
proceed in the current (possibly) rising rate environment.

I'm afraid that over the term of the current loan I'm going to get hung
with much higher rates.

How soon should I try to get refinanced? How long WILL it take to get
a better deal? Does anyone ever have success using one of the mortgage
companies listed as the best on bankrate.com with a comparable credit
score?

I'm writing under my dad's user name, but it's ok to email to the
address and I will check posts here.
I appreciate any guidance. Thanks.