Good credit can offset bad credit like a GPA. If your credit is bad, then open up 3 secured credit cards from a credit union or from HSBC, Orchard Bank etc. Let them simmer on the report. After 30 days, charge up to 25% of the limit and hold it there. After 90 days, pay off the balance. After 120 of opening the card, charge it up again to 25% of the credit limit. That pops the bureau with activity info that will increase your score.
The bad credit: Now you have to determine what to pay on and what not to pay on. Lenders disregard medical collections but the collections may still affect the score. It's actually illegal per HIPAA to report medical collections to a public site but they don't know that. You can request removal of that using the 3 credit bureau sites' dispute system. Other collections that are no longer reporting after one year are not affecting your score. However, banks require collections totaling over $1000 be paid off. How do you pay them off?
Call the creditor and settle for no more than 40 cents on the dollar. If they refuse, call them back in a couple of weeks and offer 25 cents on the dollar. They all have a deadline to collect or the account goes cold. If they threaten to garnish wages or sue you, set up a payment plan. Lenders will accept collections on a credit report if you are making on time payments to the creditors.
If the debt is huge, like a car loan, you need to dispute the balance. The car should have been sold and the extra money applied to the balance. Otherwise, they are improperly reporting and the account must be removed. Student loans have to be paid if they are state or federal.
If you need forms for credit dispute, contact me and I'll email them to you. People who ask advice through Trulia do not have to pay for the forms. I do not fix or repair credit. I will coach you but you'll have to name your first born after me...(just kidding). Honestly, I wish I could make more time to help people with credit but it is very time consuming. DO NOT pay anyone money up front to fix credit unless the company retained an attorney. It is ILLEGAL for a person to charge money upfront for services involving credit repair. Only the lender can charge for appraisal or credit report access (not for credit repair).
First time homebuyer with poor credit. The first thing would be to talk to a mortgage loan officer and determine what poor credit relates to. Is it a low credit score, collections, judgements, past due accounts, lack of credit, there are a number of things that determine where the credit stands. Today's standards, which are ever changing, indicate that a good credit is that of a 640 score (middle score) without collections and judgements and lates within the last 12 mos.
However, do not give up, many first time homebuyers can work hard to get the credit where it needs to be. It does take time and work to improve the score, but re-scoring is available.
Call upon a mortgage Loan Officer, to get prequalified and see where you stand and that Loan officer should give you a roadpath to make it better.
Sr. Mortgage Loan Officer
Silverton Mortgage Specialist
You can buy - it is just a matter of when you buy and what you have to do to line yourself up to buy. If you would like to discuss this further and are not working with a RealtorÂ®/agent, please call me 770-634-1892 Jerri.
Brian Young 214-797-3479
Check if you qualify for mortgage. Try http http://:www.whywaitbuytoday.com
MAY I SUGGEST THAT YOU CONSIDER A LENDER THAT IS NOT A BANK OR A MORTGAGE COMPANY. MANY PEOPLE ARE IN YOUR SITUATION AND FIND THAT THEY WILL HAVE TO WAIT UP TO 3 YEARS TO BE ABLE TO FINANCE A HOUSE. I WOULD LIKE YOU TO CONTACT A LENDER, LICENSED IN GEORGIA THAT MAY BE ABLE TO HELP YOU. WITH THE MARKET AS IT IS TODAY IN GEORGIA, THIS IS A GREAT TIME TO BUY. YOU SHOULD ACT NOW.
THE CONTACT INFORMATION :
The Westmoore Group, LLC
Ph: (646) 801-6190
Mb: (917) 375-2386
Fx: (646) 619-4291
BEST IF LUCK TO YOU
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 years now. Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.
The 3.5% down payment can be from the borrowers own funds or it can be gifted from a family member. Getting Pre-Qualified is the only way for you to find out your options.
Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing