Low credit score may not be barrier to new mortgage

DEAR BRUCE: >> My husband and I are ready to downsize and retire. We would like to sell our home for a townhouse or condo. We currently owe $317,760, and the house has been appraised for over $475,000.

Our problem is, due to our co-signing for college loans and some medical expenses, our credit score will never allow us to get a loan to purchase a house, even though we have been current on our house payments and most of our other bills.

I am currently making $82,000 a year and my husband earns over $2,000 a month in retirement and Social Security. In speaking with our accountant and reviewing our expenses and projected income after I retire, he feels that we could have a reasonably comfortable retirement. The key would be selling the house for a much smaller monthly mortgage payment than the $1,980 a month that we currently pay.

What advice can you give to prepare us for the application and approval process to purchase our retirement home? -N.C. DEAR N.C.: >> I don’t think you have such a big problem. You mentioned that you should be able to walk out of your house with $150,000 or more, which is not exactly chopped liver!

As to the fact that you have medical expenses on your credit report, that doesn’t necessarily mean you can’t get a mortgage. True, you may have to pay a little bit more for it, but reducing that $2,000-a-month mortgage payment would be well worth it. Further, you may want to consider one of the companies that seek out people with weak credit scores. Again, I don’t see a problem in securing the new mortgage. Make the effort. DEAR BRUCE: >> My brother bought my daughter a savings bond 48 years ago when she was born. He doesn’t remember where he bought it, and I have tried many ways to find it for her. Is this a lost cause, or can I retrieve this for her? -- Reader DEAR READER: >> You’re going to have to make a few phone calls, but there is a way to trace a lost bond. Make the effort to research it online and gather as much information as you can. This will make the search for the lost savings bond easier.

Send questions to bruce@ brucewilliams.com. Questions of general interest will be answered in future columns. Owing to the volume of mail, personal replies cannot be provided. The Bruce Williams Radio Show can now be heard 24/7 via iTunes and at www. taeradio.com. It is also available at www.brucewilliams.com.