Re: House Loans and Down Payments
Level 2

Home loans

There are so many factors to consider. Let me give my scenario. Three years ago my CS was 564 and I had a moderate amount of debt. First thing I did was make a plan. Where did I want to be financially one, two, five years from that point. I also factored in where I wanted to be physically and mentally. I was not happy with the job I had at that time and knew that I had to make that number one priority within my plan. I was making good money but not happy. I was commuting over 2 hours a day to and from work. So I said what the heck and changed my career path. Pick a career that will at the least have you wake up and not dread going to work. It now takes me 25 minutes each day to go to work and back ( about $50 a week in gas ). My new job pays less but their benefits are much better ( about $80 a month ). I get more exercise in my new job and I am happier. 


Now let's touch on your CS. Once I got the first phase of my plan in motion the second was all about numbers. I started by getting a small personal loan. Just enough to pay my credit cards down to zero. I kept my balances at zero for about two months ( remember most creditors look at your revolving credit ). With that one loan my CS jumped to 648. Now I had credit card companies wanting to give me credit. You have to realize that at this point my CS had gone up almost a 100 points. At that point I realized that your utilization of credit and the percent was more important to the creditors than how many inquiries you have. So I took advantage of those offers knowing that my score would drop but at the same time my utilization would drop. The higher your credit limit, the more you can put on credit and be at an acceptable limit ( 15%  of $3500 CL= $525 ). Guess what. It worked. I now make only $32000 a year with a CL of $30000. ON TIME PAYMENTS IS/ARE A MUST. 


So here we are now. It took me three years to get to this point. I finally closed on a house. 


To Crysi329,

Hang in there. I know you will own a house/home one day. Sooner than later. 

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