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. http://www.consumer-action.org
Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams.
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.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
Lenders defiantly consider your current credit when purchasing a big real estate investment. Keep in mind that you cannot buy a house overnight and you can fix your credit to where it needs to be to purchase. The lender that I work with not only pre-approves you but also lets you know what you need to take care in your credit so that you may obtain a loan. Give me a call and I can go over more information to help you out.
All the best,
Exit Realty Search
3928 E. Tremont ave
Bronx, NY 10465
It would definitely be more difficult on a coop than a condo due to board approval. Many times, putting more money down can help you qualify for the loan making it a lot easier for approval. Then again, without analyzing your situation, I wouldn't know what to recommend. Please contact me and I'll be more than happy to help you. I have helped many of families in the last 5 years in the same situation as yours so I'm confident I can do the same for you. Best of luck!
Certified Buyer Representative (CBR)
Fax: 917-522-9638 http://www.JohnsRealtySuccess.com
EXIT REALTY SEARCH | 3928 E. Tremont Ave | Bronx | NY | 10465
Your first step should be to meet with a mortgage/loan officer they can prequalify you and that will determine how much you can afford to purchase. Your best option is definitely a Condo/house.
Once you are preapproved, please consider working with a buyers agent of your own, you do not pay a fee unless otherwise agreed to.
Paul F. Marzolla