Credit Score in New York>Question Details

Catina, Home Buyer in New York, NY

I never had credit and I got no credit history. I won a law suit and want to by a house. I have good income but just got a credit card i pay 1400 rent

Asked by Catina, New York, NY Wed Jan 4, 2012

I want to get out of renting as soon a possible and want to buy a home. I want to put 20% down in ATL on a home. I have been paying 1,400 a month for 3 year and want my own home now. I won a law suit and want to put 15-20% as a down payment the insurance company I work for is paying the closing. My credit score is 580 only because I never had a credit card. I just got one in december is it possible for me to get a loan in 3 months? I want to move to Atlanta Georgia I will keep my same job my company work in all states and will relocate me.

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8
Tomer Ahituv’s answer
Hi Catina,

As many others have correctly answered, credit is important but there are many other factors that will also impact your ability to qualify for a mortgage. It is also correct that the first step to making a new home purchase is to prequalify with a lender. Speaking to a lender first is crucial in order to educate yourself about the mortgage process, determine what you can afford and how that will translate into a monthly mortgage payment. This will ensure you are shopping in the correct price range and obtain a mortgage that you can comfortably afford. A written Pre-Approval will also instill confidence with brokers/agents and sellers that you are a serious buyer who is "mortgage-ready" and can close fast. Knowing that you are well-qualified and prepared to close immediately will motivate realtors to work harder for you and find a home that meets all of your criteria. Your offers will be taken more seriously, you will have more leverage in negotiations and you will be able to shop the market aggressively in order to find your dream house.

I am a Licensed Mortgage Professional in the Private Client Division for Franklin First Financial. We are a national direct lender specializing in residential mortgages and headquartered right here in New York. I can provide a mortgage in Atlanta, GA or anywhere else in the country. We offer a free comprehensive mortgage consultation including a free credit check, credit repair and restoration services (if necessary), and a free formal written mortgage Pre-Approval which will put you in the driver's seat on the path towards home ownership. We can meet in person at my local office or do everything by phone/fax/email/overnight mail if that is more convenient for you. First-time homebuyers are one of my specialties and I will guide you through every step of the process to ensure you are always comfortable and well-informed. Feel free to contact me directly when you are ready to get started. I look forward to hearing from you!

Tomer Ahituv
Licensed Mortgage Professional
Private Client Division
Franklin First Financial, Ltd.
538 Broadhollow Road, Suite 405
Melville, New York 11747
Office: 646-504-2333
Fax: 631-393-4690
NMLS#: 31191
Email: tomer@FranklinFirstFinancial.com
http://www.franklinfirstfinancial.com
1 vote Thank Flag Link Fri Jan 6, 2012
BEST ANSWER
Absolutely. Welcome to future home ownership. We currently have programs in our mortgage department that would allow you to purchase a home with only 3.5% down with a 580 credit score, at very low rates. Under 4%.

When you are ready, give me a call direct at 800-640-8798
We never charge upfront fees.

Daniel Klein
Broker
Over 1 Billion Sold
800-640-8798
1 vote Thank Flag Link Wed Jan 4, 2012
Catina,
The first step in making a purchase is always to prequalify with a lender. As you are moving from NYC to Atlanta, I would recommend you reach out to a couple of real estate agents in Atlanta and ask for their best lender recommendations. Speak to a loan officer, provide all the info you have provided in your question and any other documentation they ask for. The loan officer will be able to tell you how much they are willing to lend you and therefore you will know what purchase price to be looking at. Having a low credit score does not necessarily mean that you can't get a mortgage, but it may necessitate having a higher rate, at least in the beginning. There is also the possibility of refinancing down the line when you have more of a track record.
The responses below saying that having low credit due to not having had credit lines is not as bad as if you have poor credit due to other reasons is true. However, from the perspective of a bank, lack of history also means lack of a history of prompt payments, so it still presents a risk to the bank as you are somewhat of an unknown risk.
To find some good real estate agents in Atlanta, go to the find a Pro tab at the top in put in "Atlanta, Georgia."
1 vote Thank Flag Link Thu Jan 5, 2012
Hi Catina. Yes, you do have a credit history. As you said, your credit score is 580 and that is very low indeed. My thought is a default on a student loan or car loan? Something happened that gave you the low score. You need to get your credit report and it is free from each of the credit reporting bureaus once a year. Do that, check it out and address anything that is incorrect. You need to bring up your FICO number to get a good interest rate if you intent to borrow. Good luck.
0 votes Thank Flag Link Thu Jan 5, 2012
There are other factors besides credit that determine mortgage qualification; therefore do visit with any licensed loan officer, after reviewing your overall financial information, a determination on qualification can be made. Also choose an agent to work with, you can locate some area agents under the find a pro tab.
0 votes Thank Flag Link Thu Jan 5, 2012
As stated below Catina, It is possible if you have proof of steady income coming in that a lender can use to qualify you. FHA is Government financing which only requires 3.5% down payment. No credit is better than bad credit. The lender you choose should be able to use your rental history and any utility bills you pay regularly. Also try credit-unions and other private financing as they don't have as strict guidelines to grant loans.

Good Luck in Atlanta,

Rob Hughes-Long and Foster RE INC.
0 votes Thank Flag Link Thu Jan 5, 2012
Catina,

There is a difference between having a low credit score due to lack of credit history and a low credit score due to poor credit history. Frank answered the question best, it is wise to speak to a couple of mortgage lenders and see what types of programs they have for people with very little to no credit history. It is quite possible that a letter from your landlord stating that you have been on time with your rent over the past three years may help in your case. Hope this helps. Good luck.
0 votes Thank Flag Link Thu Jan 5, 2012
Aloha Catina,

I would talk to your bank and/or credit union and a mortgage lender or broker (I can recommend a few if you like). It's a good idea to talk to 2 or 3 different people to get an opinion on your situation and possible loan terms.
It can vary according to state, type of property and even by complex or neighborhood within the same city. Call or email if you have questions.


Frank Diaz
(RA) MBA, e-PRO, REALTOR®
East Oahu Realty
808.723.0900 cell
Web Reference: http://hawaiihome.biz/
0 votes Thank Flag Link Wed Jan 4, 2012
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