We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.
It is unlikely you could be approved for mortgage financing with that credit score at this time.
Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.
First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.
Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.
I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.
The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.
The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.
*If you thought my answer was helpful, please give me a â€œThumbs Upâ€ or â€œBest Answer.â€ Thanks!
Tell him Josh sent you.
Best of Luck,
Josh Barnett, Realtor
Metro First Realty
Web Reference: http://www.GetSoldOKC.com
interest rates on $50,000 may be higher than the "average rate". Check with your local bank or a mortgage Broker and ask about Rural Development (it's the 100% financing program that doesn't require a down-payment) this may be a good option for you if you and the area qualify. It's a great program that has helped many of my buyers purchase homes.
there are a few different loan types in Oklahoma.
There is a 100% loan called Rural Development that does not require a down payment. Depending on your situation and area you are looking you may qualify. It's a great program! Your current local bank or a mortgage broker can help you more in depth with this, I can refer a few to you if needed.