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. Find more from the FTC HERE. http://www.consumer.ftc.gov/articles/0058-credit-repair-how-
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.
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Sorry to here about your troubles. There are some really great mortgage companies in town that will help you get it right. If you have not spoken to anyone and need recommendations I would be happy to assist you. I am a Realtor with Masonboro Realty, Inc. here in Wilmington, NC. I would love to help you and your husband find your first home! Please feel free to contact me via email or cell phone if you have any questions. I hope to hear from you soon. Best of luck!
Let me give you a quote on your purchase. Compare mine to other offers. Contact me to save money on your closing costs! Purchase Power - Mortgage Package Put more of your money into your house and less into your closing. Save on fees. For example: No Underwriting Fee No Appraisal Fee No Document Prep Fee No Credit Report Fee No Fee for Lender Title Policy No Recording Fee No Settlement or Closing Fee No Flood Certification Fee And More Competitive Rates Close On Time Pledge http://www.gtoriginations.com/scott.cox cell: 919-219-2252
Keep in mind, just because you pay off a debt, doesn't mean it will improve your credit score. You could pay off a bill and the company is not require to state that on your credit report.
Hope this helps.