Posted on: 09th Sep, 2009 10:25 am
For the last year we've cleaned up our credit (Middle 640) and we think we're ready to buy. We've removed derogatories (paid off or disputed), have just 3 derogatory accounts (late payments) in the last 24 months and think we're well on our way. The last thing we take care of is our back taxes (2007 owe $750 and 2008 owe $1250); mailed off a few days ago. I decided to share a copy of my credit report and my story with a mortgage broker and am told that I'll have to pay off the balance before I am pre-approved!!! :cry: What a let down!!
My questions are:
Thanks for any and all replies.
Anxious HomeBuyer
My questions are:
1. Is it possible to get pre-approved with about $3000 in back IRS taxes? We have no liens against us and figured whatever outstanding amount owed would be swallowed by the $8000 tax credit.
2. If we do find a company that will pre-approve us should we consider it sub-prime and steer clear? The last think that I want is for our hard work to go to waste because we chose a mortgage hastily.
Thanks for any and all replies.
Anxious HomeBuyer
Why would you want to hurry in to buying a house at this time.
Probably you would be better off cleanign up the tax issues and save soem money for down payment
Probably you would be better off cleanign up the tax issues and save soem money for down payment
Hey, George. It's not that I'm trying to avoid what I've been told I just want a second opinion. I was told that I had to pay off a $5K+ collection and I paid it. I was told that I need to have at least 12 months of pristine payment history and I did it. I was told that I needed at least a 620 middle score and I made it. All of these made logical sense to me. The IRS situation, not so much. Now that I know that's what I need to do I'm going to do it. I'm not overly concerned about making the deadline for the tax credit because I'm pretty sure that it will be extended. And, if not, oh well. I'm starting to get used to the long-forgotten notion of saving to buy something.
that's why i said "please don't take this personally" up above. i didn't mean to accuse you of shirking at all, but simply trying to make the point that our advice is often ignored much to a potential borrower's chagrin.
you've done more already than too many do, so that's to be commended. as for the tax credit, it's not a bad idea to contact your local congressional delegation and urge them to do something to extend or amend and continue the credit. it will be beneficial to you, and to everyone else who fits the category of first time buyer.
as for tax liens and the desire that they be paid off...tax liens take precedence over mortgages in the pecking order. if you default to the federal government with your taxes, they go after you first and get paid first; the mortgagee comes in second, at best. that's not the position a mortgagee wants to be in. i hope that helps make sense of it all.
you've done more already than too many do, so that's to be commended. as for the tax credit, it's not a bad idea to contact your local congressional delegation and urge them to do something to extend or amend and continue the credit. it will be beneficial to you, and to everyone else who fits the category of first time buyer.
as for tax liens and the desire that they be paid off...tax liens take precedence over mortgages in the pecking order. if you default to the federal government with your taxes, they go after you first and get paid first; the mortgagee comes in second, at best. that's not the position a mortgagee wants to be in. i hope that helps make sense of it all.
I understnd George
But you know just for that 8K I woudl really suggets any one in this situation to worry abotu the current status than about that 8K.
More loan means more issues
But you know just for that 8K I woudl really suggets any one in this situation to worry abotu the current status than about that 8K.
More loan means more issues
more loan? huh?
I am not sure what was your comment about?
Huh?
Huh?
what was that "more loan means more issues" that you said...i didn't get that at all. what was it relevant to?
I am surprised that you did not get it!
The more you borrow while you are still workign on imprving yoru credit, it does not help any one in improving thier credit report or score
let me know if that makes sense to you
The more you borrow while you are still workign on imprving yoru credit, it does not help any one in improving thier credit report or score
let me know if that makes sense to you
our poster isn't trying to borrow any additional amount of money. he's concerned about whether to pay an irs tax lien in full along with his opportunity to obtain the first time homebuyer tax credit of $8000.
how did you get the idea he was talking about borrowing more money anywhere?
how did you get the idea he was talking about borrowing more money anywhere?
This is really funny george.
If they were planning to buy the house payign cash why woudl they be worryign abotu thier credit score?
They need to borrow money to buy the house
If they were planning to buy the house payign cash why woudl they be worryign abotu thier credit score?
They need to borrow money to buy the house
sunny you have completely misconstrued the original poster's questions. please go back - there are 2 questions: 1) can he be approved even though he has back taxes of about $3000; and 2) if he can be approved, should be cautious for fear that a particular lender is a sub-prime lender.
in neither of these questions did the poster ask about borrowing additional money of any sort. the only reason the amount of $8000 came up to begin with is because that is the maximum tax credit available for first time home buyers. this poster simply wants a mortgage - similar to virtually every home buyer in this country. it is a far cry to suggest that many people buy homes with cash.
in neither of these questions did the poster ask about borrowing additional money of any sort. the only reason the amount of $8000 came up to begin with is because that is the maximum tax credit available for first time home buyers. this poster simply wants a mortgage - similar to virtually every home buyer in this country. it is a far cry to suggest that many people buy homes with cash.
Ok Let me make it little more clear
I did not say that the poster is askign for additionl money.
Poser is wanting to know if he or she can borrow to buy a house. That it self is a loan if he or she gets it
I hope you get this
I did not say that the poster is askign for additionl money.
Poser is wanting to know if he or she can borrow to buy a house. That it self is a loan if he or she gets it
I hope you get this
i simply don't think that a new mortgage for the purchase of a home constitutes "more loan" - which then translates into "more issues."
and sara...do you REALLY think that it all comes down to a personal decision? gee whiz
and sara...do you REALLY think that it all comes down to a personal decision? gee whiz
George if you want to pick every one commnets thats who you are, every one is sharign thier thouths and there is no rule on the forum which say it has be your way