First get a copy of your credit reports

First get a copy of your credit reports and FICO scores and see exactly where you stand. I am not sure how much time you have before you will need the mortgage but if you have 30-60 days you may be able to get some things disputed off.

Next get a good mortgage or fast approval payday loans broker who can find the best deal for your situation. Make they can do sub-prime and know NOT to farm your application out causing unnecessary credit pulls from too many lenders. One that knows his stuff can do it with just one or two pulls.

Be aware that once mortgage pulls start happening some old creditors will probably come to life so be prepared!

Finally get a good idea of what your GFE means and what you will be expected to pay at closing and if you will have to pay any collections.

First get a copy of your credit reports

Buying 1st home and settlement obstacles

I’m new to the group and although my debt is relatively minimum,I just graduated from college and am in the process of buying my first house and so therefore want to get a hold on the debt now. My question is this-financially I wasn’t prepared to purchase this house but I have a 9-month-old and the opportunity that the seller presented was something I couldn’t pass up (i.e. An older relative is selling me their house for $30,000 less than the appraisal value).

Having just left college,I have some credit cards and other accounts in collections that are on my credit report and fear that some more may pop up eventually.What could happen,at worst case scenario,to prevent me going to settlement on this house and what can I do to get prepared or fix this before it happens.Any advice is greatly appreciated.I don’t have any extra cash on hand to pay off any of the accounts in collections so what other options do I have?

Buying 1st home and settlement obstacles

High car payments

I have a one yr old 2005 car that my husband and I qualified for 1% financing. At the time, buying the car was a good idea, but now we are making $350 car payments and I have left my full time job to work part time, and my salary has decreased over $15,000. I am afraid to trade my car in for a cheaper one because we own $4000 more than blue book.

Does any one have any ideas or have heard any ads for cars that spealize in “paying what you owe” for a trade in? What can I do to reduce my car payments?

Also, what do you think about this video:

High car payments

Financial assistance

Typically when you are going to have a roommate or other financial assistance it has to be in the form of a contract. The lender is going to say that since the others are not on the loan application they are not responsible for the debate. This means to them that they are going to look at your capacity to repay the loan.

Your roommate could decide to move out. Your family could encounter some things that would change their ability to assist you. So the lender is going to look at that and say, can she pay on her own?

You might be able to include the rent payment from the roommate IF you have a lease/contract set up. Just depends on what the lender says. And I definitely agree with talking a lot to your lender. Most banks are what is called A paper credit. You might do better going with a broker, especially one who specializes in sub-prime lending. Just communicate a lot with the lender so they are clear on your situation and what you are wanting.

I hope that helps.

Financial assistance

Sorry to impose upon this concersation

Sorry to impose upon this conversation, but what you are talking about applies to my current situation.I am in the process of purchasing a home despite the fact that my current financial situation isn’t the most ideal.

My dilemma now in the process is that the high property taxes have thrown my income to debt ration out of the required guidelines for the loan.How do I report that I will be having a roommate who will be paying half the mortgage as well as parents and family members that will assist in paying of my bills.What is there that can be done to show that the money will be there to pay the mortgage?

I don’t know what I would have for a payment history because there isn’t a 2nd income and I don’t have any saved. But I do have a VA loan I can get. I have my car payment but it’s not reported to the credit bureau and nothing else is reported to the credit bureau. What else is there? Just curious.

Sorry to impose upon this concersation

I was able to pay $825 on my car this month

Normally my payment is $300. The owner also gave me another $100 off the life of the loan’s interest so actually, it’s like $925 payment. If I could possibly make another 2 big payments like that, the car will be paid off. My interest is 20% so now you know why I want to pay it off fast.

I know I should pay the 2 credit cards off that I owe $300 and $250 on but I can’t really move until I pay the car off because I’d never be able to get the payment to him on time because it’s due on the 1st, the day I get paid. I also don’t feel safe about taking the car out of state permanently until I have the title in hand.

I put my mobile up for sale, that’s the last dept I have. This will be the hard one. It’s a 1977 mobile home, 14 x 70, and I’m asking $12,999. The hardest thing is, once someone wants to buy it, I have to write a letter to my husband with an address in Indiana which I don’t have yet. It’s kind of hard to look for a place over the internet from Spokane, WA.

I was recommended to try for my real estate needs. What do you think?

I was able to pay $825 on my car this month

What’s creative financing?

Creative financing is where you may use other means of income and payment history to show you can repay a debt. There are many people who don’t have credit cards that are able to purchase houses.

You may supply bank statements, current housing/rental statements, other statements that show a payment history.

There are tons of creditors out there that will help you get into a house if that’s what you are wanting to do.

I would suggest though, that you think about your budget and what you are actually spending. Think also about every place that you can cut corners. Also take a serious look at your spending habits to ensure you are not traveling down the same path.

It’s not easy. I just had a conversation with my husband about trimming his gas allowance. He doesn’t use it all but wants to continue to get the same amount “just in case” he needs extra money. I explained that is what we are trying to do. Stop spending the extra money just because it’s there. So yeah. It’s a day to day thing that we have to face. Thankfully we face it together but it’s not always easy.

Learn more from this video:

What’s creative financing?

The $200 for groceries is for food

The $200 for groceries is for food, cleaning supplies, vitamins, shampoo, paper towels, cat food, litter, pretty much everything in a grocery store.

No one to trade for oil changing, too many jelous wife’s and girlfriends in the neighborhood.

I’ll cut the lunch money completely and let her brown bag it all the time. She doesn’t mind anyway w/the lousey food.

A few banks have told me I need credit cards to have good enough credit. I’m beside myself as 1/2 say I don’t need them and half say I do.

Qwest is $73 because that includes local and all long distance. A package deal. Does sound a bit much, I’ll ask if there’s something I don’t know about.

FYI – I got unlimited long distance and local plan through IDT for around $50 a month. It’s the best deal I found for an unlimited plan. They have a website you could check out. Always open for suggestions on cheaper service (the $50 includes all taxes, surcharges, grain offerings, and whatever else “they” like to tack on…).

That $200 a month in groceries is impressive – I’ve been trimming my groceries back, but haven’t gotten anywhere near that. Congrats!

The $200 for groceries is for food

I think that we can see your need to have a reliable car

One thing that was mentioned and I am not sure if you responded or not but are you still charging on the cc’s and what type of things are you charging? A suggestion was made to write down EVERYTHING that you spend money on. Try this and you will be amazed at where all your nickles and dimes go without you even knowing.

I wrote down a budget (which can be harder than you think) and just in the first month have already found several areas that I could cut even further.

Good job on getting rid of the cell phone. At least that’s one expense you managed to cut down on.

I know that you are making your way and it’s a slow process. Just keep in mind that slow and steady will win this race.

Here are some additional comments:

I definitely agree with incorporating your kids in the financial decision making as appropriate. This will really teach them a valuable lesson.

Your daughter’s lunch money is $44 per month. It’s good that she started taking some lunches but you could really cut down even more in that area.

You don’t have to have credit cards to buy a house.

You should be able to move to where you want to but you have to have the gazelle intensity that Dave Ramsey talks about in his book.

$ 73 Qwest local phone == Is this including a past amount owed or something? Seems high for basic service.

$ 25 allowances(divided among 3 kids) === again once you incorporate the kids into the decision making and they begin understanding that the family will have to take drastic measures to see some positive changes you will see some great results. Perhaps they can take on odd jobs like mowing the grass or babysitting. If you have special needs children there are programs that will help them as well.

$ 16 oil change === do you have a neighbor, relative, co-worker or friend that could help you with this in exchange for something? Like bartering?

$200 groceries === are you meal planning? do you take advantage of coupons or sales? someone had questioned what you were buying such as expensive snack items when you could possibly substitute homemade items?

Everyone on the list wishes you the best and we all hope that you are really focused and serious about making changes. You can do this! 🙂 It will just be one step at a time and you will be really happy with the results.

Just today I made a small change that will only affect a bill by $10 but I figure hey, that’s $10 more dollars that can go to my snowball debt program.

Good luck and let us know how the changes are going for you.

I think that we can see your need to have a reliable car

I just joined here myself

I just joined here myself, so I am not experienced in how this blog replies to posts such as this person’s original request, but it seems to me that MK came here for help and was given some very good down to earth suggestions by both Lisa and Mary, which she then shot down 90%, tinged with some defiance. I am 57 years old. self employed for the past 30 years, so I know what I am talking about, I’d just like to point out that there is no miracle, getting out of debt means you simply have to cut corners and expenses whereever possible. If you are not willing to do so, your progress will be one step forward and two steps back until eternity. It’s that basic!

If you cannot reduce your monthly expenditures, then your only alternative is to increase your monthly income.

Get a part time job of some sort, have your kids start earning money for their own needs by performing service related jobs in the neighborhood, start selling on ebay etc. If you must borrow money, do your utmost to stay away from Quik Check, if you have credit at all, try going to your local bank, if you don’t have relatives who can make you a small loan, then perhaps one of them would trust you enough to act as a co-signer.

Above all, have your children participate in solving your money problems, children who are taught to manage money at an early age will not find themselves in debt when they mature. They can be incredibly helpful and resouceful, if given the chance.

Basic foods that you actually cook from scratch during the week, or shop at Aldi’s or Sav-A-Lot and buy the least expensive prepared foods, then on one day a week, have a nice meal and include everyone’s favorites. Same with pop and chips and other expensive snacks… make them a weekend only treat. This gives the kids somethng to look forward to!

& Car insurance… higher deductibles is the way to go here…consider the amount you save monthly when you have higher deductibles…bank on NOT-needing the insurance, if possible, take the difference that you save and put that into a seperate account as an emergency fund- this may not be a perfect example, but you have to think like this… You might save as much as $20 per month with higher deductibles… $20 x 12 months equals $240. in 2 years you have saved $480 (almost the $500 deductible). Unless you are accident-prone, this is the way to go…

I just joined here myself

Buying a home – medical reasons

We have had a lease to purchase for a year now and they have extended the terms for 6 months then will raise the lease amount and home value 1% per month. They wanted to raise the house price by $10,000.

The monthly lease is really too high. Looks more than possible on paper and we are being careful with spending but it seems we are always trying to catch upon bills ( they fall opposite pay times)and two car loans ( on is the GMAC Smart Buy works like a lease) and my car I got with the 0% deal but it doesn’t get paid off real fast and about $4,000 is owed over it’s value according to several sites I have checked. Also – neither of us take all our prescriptions and I skip every other day with mine. Being an EMT I should know better but even the co-pay gets to bee too much at times.

Now we are looking for a different home. Yes it will help to get a more inexpensive home but the main reason is medical. They have found that I have 8 bad discs and my spine is collapsing so soon the 3 flights of stairs ( 3 floor no bathroom on the main) will be too hard to navigate.

Heres the deal:

1- I talked to a mortgage broker a few months back and we got my credit reports and went over every thing. It shows two state tax liens that were both paid.

Several “nicks” from where we went through CCS and then settled and paid them all off but it doesn’t look good on the report. That’s doesn’t seem fair since we did what we could to get them paid and then paid them off before we needed to.

We had a foreclosure – over 2 years old now because I had lost my job and the bank refused to take partial payments.

There is one lien on there that the company NOR the county knows anything about. The county says they have no record of it but it doesn’t seem we can get that off our report.

2- Since going through all the reports and getting things updated or marked paid where ever we could our score DROPPED. They say that happens at first.

3- we have NO money for down payment or closing so would have to go 100%, one house we like the sellers will carry second mortgage on it.

So – Tell me what bank will work with us and not “farm” out to others and drop the score more.

With our income now we can easily manage a payment close to what we are paying now – maybe $100 less a month would be great and we are looking at houses in the $160-170,ooo range instead of the $200,000 one we are in now.

We have been on time with all our payments on this house lease and have a three year record of renting after the house foreclosed (they didn’t process the forclosure until over 4 months later and the collateral from the sale paid the existing loan off.)

Whew! sorry for the long winded email but would love to hear what banks will look at the whole and not just the score.

Buying a home – medical reasons