Financing in 16125>Question Details

Linda, Home Buyer in Greenville, PA

what if ya have bad credit?

Asked by Linda, Greenville, PA Thu Sep 20, 2012

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Good afternoon Linda,

If you have BAD credit it is unlikely you could be approved for mortgage financing 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.


Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams.

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 Thu Sep 27, 2012
I would suggest doing some of the leg work yourself before you even reach out to a bank/mortgage broker. There are some basic things that you can do to improve your credit score. Such as the following:
A. Request a Credit Line Increase
B. Pay Off Debt
C. Charge less or use cash
D. Consolidate Credit Cards only if you have multi credit card issues
The last one should have been the first to me “Review Your Report for Errors and Omissions.” You can easily increase your credit score by 50 points just during the last one.
0 votes Thank Flag Link Fri Sep 21, 2012
It would be a good idea to speak to a lender about a pre-approval. They can tell you your credit score and give you some direction on how to repair it.

Loretta Leibert, Realtor, GRI
Prudential Landis Homesale Services
Fine Homes International Specialist
Office: 610-372-3200 ext. 3049
Berks County Cell: 610-488-7482
Bucks County Cell/Text: 215-514-4872
E-mail: lorettaleibert@comcast.net
Website: http://www.lorettaleibert.com
0 votes Thank Flag Link Fri Sep 21, 2012
Hello Linda,

I work with many people with less than perfect credit. For some people it can be a matter of tweaking the report. If the credit is really bad it can take 12 to 18 months to get it where it needs to be to qualify for a mortgage.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960
0 votes Thank Flag Link Fri Sep 21, 2012
Linda there are several mortgage companies willing to work with less than perfect credit scores. They work with you and explain what needs to be "cleaned up" in order to qualify for a loan. I will be happy to give you more information just give me a call or email at the contact below. Kimberly Brick, Coldwell Banker Bainbridge Kaufman Real Estate. 724 815 8437 Direct Line. Kimberly.brick@coldwellbanker.com
0 votes Thank Flag Link Thu Sep 20, 2012
Linda there are several mortgage companies willing to work with less than perfect credit scores. They work with you and explain what needs to be "cleaned up" in order to qualify for a loan. I will be happy to give you more information just give me a call or email at the contact below. Kimberly Brick, Coldwell Banker Bainbridge Kaufman Real Estate. 724 815 8437 Direct Line. Kimberly.brick@coldwellbanker.com
0 votes Thank Flag Link Thu Sep 20, 2012
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