Our First Home Buying Experience

The first time I learned about what was contained in my credit report was when we decided to buy a house.

My husband had earned a nice big bonus and so we now had enough for a down payment.

Our First Home Buying Experience

We were excited to meet with the mortgage broker. She came into her office and sat down in front of us with a large stack of papers, and then proceeded to show us all of the horrible things that we had done.

She basically informed us that even if we could come up with the money for a down payment, we would probably not qualify for a home loan. There were too many bad marks on our report.

I was embarrassed when I saw how many times we had been marked for late payments

Some of them were for over 120 days. We just sat there, humiliated while she went down the list of our accounts, and circled them one by one, explaining what was wrong with each one.

Needless to say, we left discouraged and depressed. I was under the impression that because we had money to put towards a house, we would be able to buy one. Why did we have to have good credit to buy a house?

We could afford it. Most of the late accounts on that report had been paid off for a couple of years. Yes, in the past we had made some bad choices with our money, but we were better now.

That's when I learned that all those bad things stay on your report for seven years. You can't get them off any sooner. Even if you pay of your accounts the information will still be in your report. Our credit report was not the only reason that we couldn't qualify for a home loan. We also, had acquired a high amount of debt.

There wasn't a bank on the planet that would approve us for a loan, because we had too much debt and not enough income. Oh, we were making all of the payments on our accounts, be we could only make the minimum payment on each account.

The mortgage broker told us that we would be paying these accounts off for up to 30 years. She advised us take the money that we were going to use for a down payment and put it towards our debt.

We were not sure what to do. The money that we had for our down payment was not enough to cover all of our debt. So it would be like throwing it into a bottomless pit. All of our extra money would be gone, and we would still have more debt to pay off.

What we really wanted to do was to find another fun way to spend our extra money, like on a boat or a really big TV

It's a good thing that we made the smart choice and put the money towards our debt. Each time paid off an account we got a happy tingly feeling inside. With our extra money, we paid off five of our credit cards.

Like I said, there was still a large amount of debt left, but now that we didn't have to make the minimum payments on those five accounts, we could take that money and pay off more debt each month.

After about a year, we went back to the mortgage broker and showed her that we had paid off most of our debt. She smiled and told us that now, even though our credit score was low, we might be able to find a way to get into a house.

What a great feeling it was to think that we could now afford to buy our first house

That's the discussion in this article that I've summarized about Our First Home Buying Experience. Hopefully it can be useful and add insight.

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