Financing in Chicago>Question Details

Latanya Lart…, Home Buyer in Chicago, IL

I have a down payment of 25,000 for a home but my credit score is poor. Should I just wait to purchase a home one I get my credit score higher or try?

Asked by Latanya Lartheridge, Chicago, IL Wed Dec 7, 2011

to find a lender that will finance me. I can make mortgage payment without a problem.

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Answers

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BEST ANSWER
How Poor. If you are over 580 you can still possibly buy
0 votes Thank Flag Link Wed Dec 7, 2011
You need to bump up your credit score in order to obtain a mortgage. There are companies that can help
you to correct the marks that are blemishing and lowering your credit score. Consult a loan officer to guide you to a good company that will help you to do the correction on your credit report. The higher your credit score is the better rate in which you will paying on your loan. Please contact me if you need a loan officer or company that works with credit,I would be happy to help you. Debbie Bergthold-Smith Classic Real Estate.
0 votes Thank Flag Link Thu Dec 8, 2011
Latanya,
You are actually in a much better situation than appears to you.
If your intent is to finance the purchase of a home, you need to be acutely aware, you highest cost will be the price you pay for the money to buy the home. This cost will dwarf the actual price you pay for the house. This financing price is largely dependant on your credit score.

Please consult a local lender. If you like the stories you read about foreclosures, consult with a big bank.

You need to determine:
1. Will it better serve you to use a portion of your 25K to pay down debt and improve your ratios?
2. Can plans be in place to improve your credit score by simply cleaning up incorrect information?
3. Are there blemishes that MUST be resolved before any financing can be considered.
4. Do you have exposure to other debt through business relationship, marriage, co-signing, etc.
5. What is your purpose for purchasing a home?

As you walk towards a home purchase, play close attention the the options and benefits a WalkableHome provides. For those who are adverse to risk, qualified WalkableHomes are a real option.

Best of success in your new home purchase.
Annette Lawrence
ReMax Realtec Group
Palm Harbor, Fl
727. 420. 4041
0 votes Thank Flag Link Thu Dec 8, 2011
I would talk to a lender and maybe they can help you raise your credit score. There is programs they can put you on to repair your credit.
Web Reference: http://AmericorpRe.com
0 votes Thank Flag Link Wed Dec 7, 2011
Hi, Latanya. That would depend on what you consider a poor credit score. Credit history also plays an important role as well. You could have a 680, but if you had a Chapter 7 less than 2 years ago, or a foreclosures less than 3 years ago, you still would be out of the running regardless of what you put down. My advice is for you to sit down with a licensed loan officer that is experienced in credit restoration to review your credit and options. The consultation should be free, and you may be able to do yourself what is needed to improve your score. Good luck.
0 votes Thank Flag Link Wed Dec 7, 2011
Greetings Latanya,

$25k is a good start. Based on your credit scores you can obtain a loan with as low as 3.5% down. You need to be employed and your income needs to be enough to satisfy not only the mortgage debt but also your other debts. How low are your scores? If they are below lender standards, then spend the next few months clearing up your credit issues. This will allow you to be in a position of strength within 4-6 months. There will likely still be plenty of deals next summer.

Feel free to contact me with any questions:

Bill J Deligiannis
First Centennial Mortgage
B.Deligiannis@GOFCM.com
Web Reference: http://www.BJDLOANS.com
0 votes Thank Flag Link Wed Dec 7, 2011
Hello Latanya,

You still have options, but only a couple. Give me a call at 630.701.4294.

Michelle D. Trotter
0 votes Thank Flag Link Wed Dec 7, 2011
Hi Latanya,

Without a doubt I would consult with a lender/loan officer. Let them do the math for you and give you a game plan if there are any issues discovered in the process.

I recommend Matt Bukovy @ Wintrust Mortgage 773-654-2498 O 773-416-7101 M, mbukovy@wintrustmortgage.com.

Good luck!
0 votes Thank Flag Link Wed Dec 7, 2011
I have the ideal credit coaching program to get you to the next level. Don't waste your time with those promising programs available for your situation. Truth is, you probably already know you cannot purchase right now. We're in an age where the amount of down payment doesn't really make you worthy of buying. Its 1 piece of the pie. Cut to the chase. Get a real answer and path to home ownership. You can reach me anytime.

Alexander Romo
Senior Vice President
Chicagobancorp
312-738-8430
0 votes Thank Flag Link Wed Dec 7, 2011
It really depends how poor your credit is. I would talk to a few lenders and give it a try. Community banks might be better than going to big mortgage companies. Sometimes they are a bit easier. But many have credit score minimums. Also, it depends on what percentage of your down payment this 25k is. If it is over 20% - you have a better shot. If it is 5-10% - probably won't matter. But fix your credit. It can be done very quickly if you are motivated and use a credit correction company.
0 votes Thank Flag Link Wed Dec 7, 2011
The only lender I knew was able to lend money for home buyers with FICO below 600 - Wells Fargo, just pulled a plug on this program. You should have a minimum 600 and over 620 to have a good chance of being approved for mortgage.
0 votes Thank Flag Link Wed Dec 7, 2011
You need to speak with a couple of lenders to see what they might or might not lend you. My web site has a couple of references or speak with your local bank. Do not let more than one pull your credit because it can lower your score. Just tell them what the FICO score is to start with.
0 votes Thank Flag Link Wed Dec 7, 2011
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