Credit Score in Charlotte>Question Details

Madmaksmommy…, Renter in Charlotte, NC

my score is 529; am paying two CC off in Jan; is there any chance of a mortgage by april?

Asked by Madmaksmommy4210, Charlotte, NC Wed Sep 14, 2011

i have 3 student loans and a car loan in good standing but have a few medical bills that i've fallen behind and am trying to pay off. There's a house in my parents neighborhood on sale for 89,500 and i currently make a 678 apartment payment on time for the past 20 months...is a mortgage possible with my low credit score? It's very frustrating to pay a high rent when i know i can own a house and make a cheaper payment. Does anyone have good advice as to proper steps to make owning a home a reality?

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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://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.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm


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.


Trevor Curran
NMLS #40140
0 votes Thank Flag Link Tue Apr 17, 2012
Helloe Madmaksmommy4210,

We have a Rent to Own progam that will work for you and we can help you rebuild your credit. Contact me personally 704-444-3333 or tyra@mstrt.com, I'm sure I can get you on the right path.


Thanks,
Tyra
0 votes Thank Flag Link Tue Apr 10, 2012
A mortgage is likely possible but you'll have to find a lender that you trust. If you have access to a credit union that would be a good place to start. There is a good local broker that I know that I believe could walk you through the process. Fairway Independent Mortgage / Tel: 704.749.3691. Rates are so low and money is so cheap right now plus the market couldn't be better primed for a home purchase. Find a lender that you trust and is helpful enough to walk you through what you need to do to accomplish your goal of an April purchase. Best of luck to you!!!
0 votes Thank Flag Link Thu Oct 6, 2011
Hi,

Different lenders have different requirements/guidelines. You also need to look at your debt to income ratio to find out if you can qualify for that the house in your parents' neighborhood (if that is the price range you are targeting). I would highly recommend, if you have not done so already, that you speak with a lender. I have many I can recommend. Keep in mind that when you buy a house, there is a down payment and closing costs involved. I specialize in down payment assistance programs that could help you with your down payment and closing costs. If you have sufficient money saved for a down payment, some lenders will do sub 600 credit scores (i.e., Wells Fargo). If you go that route, up to 10% of the home purchase price will have to put paid as a down payment.
0 votes Thank Flag Link Wed Sep 21, 2011
I know a local lender who can make it work! Please give me a call!
Annabelle
0 votes Thank Flag Link Sat Sep 17, 2011
Also I've noticed that people are putting in their two cents with other people so please keep negative, unneccessary comments to yourself. I'm well aware of the mistakes i've make to my credit so i do not need a reminder of it. I've been working hard at making amends to my score and have my my lease ending in April and would like to know how possible it would be to purchase a home from a KNOWLEDGEABLE person. Thank you again!
0 votes Thank Flag Link Wed Sep 14, 2011
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