I spoke to a mortgage broker for an hour today. Although the conversation did NOT end with any kind of pre-approval numbers, I feel really good about it. This guy spent a lot of time with me, trying to understand every aspect of our situation, and helping me to formulate a plan of action. I need plans of action.
I told him about the land and how much it is, how much we can put down, and that we would like to get a construction loan. He didn't tell me that the scenario was too difficult - he really listened to what we want. I am so grateful for that.
The trouble with our credit comes down to Steve not having a long enough and positive enough credit history. I do have a long and positive (enough) history but I don't work, and haven't since Aidan was born. So each of us has this big deficiency as far as lenders are concerned. So here's the plan: the owner finances the land for us after we put down a sizable deposit. Steve's name is on the loan and all of our on-time payments, and six months to a year from now, we can use that to show a history of paying the debt. By then our credit scores will also be higher. We can use our equity in the land as the down payment on a construction mortgage.
We both feel really good about this. We might even be able to build a small cottage on the land in the meanwhile to live in so that we don't have to pay rent. We were seriously considering living in a yurt when we first came up here, but now we figure we could probably built a little yurt sized thing for a lot less money. Even if this land gets sold to someone else, we know where we stand with a mortgage and that is a huge comfort to me.
I did NOT make progress overcoming my fears, becoming a braver, more passionately alive person this week. I cheezed out. I blame the $100 fee for the class. Or my radiator springing a big leak and almost overheating my car today. Okay, it really had nothing to do with my radiator - that happend well after I had procrastinated my way out of signing up for the class - but it did give me some satisfaction. I wouldn't have been able to get to the class anyway. It's true. Really.
Comments
The action plan sounds like a good one! It really pissed me off when we were looking for mortgages that we hit the same road bump--we have very little in terms of credit history: Jeff's student loan, a couple of credit card accounts I had paid off and closed. And no credit is bad credit (whatever!).Good thing my favorite candle company now makes an "Abundance" candle. Guess who I'll be lighting it for this week?
Keep going. You guys have the same sort of credit issues we do. I keep thinking we're going to find the most perfect, most incredible hunka land, and we're not going to be able to buy it because... because of stupid mistakes and bad decisons made 10 years ago, back when I was immortal! Jim has barely any credit at all, and mine has improved considerably, but it's daunting. It really is.