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.
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.
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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Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Ranked #1 by Buyers and Sellers (JD Power & Assoc. 2012) Call 512-261-4415
Susie Kay, RealtorÂ®
GRI, CHMS, SFR
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
Servicing your real estate need is my priority!
You can fix your score quickly if you just have the funds to pay off debt. After that, you will see your score fly up significantly.
I suggest you work on your credit. These realtors will tell you yes, but my husband and I have been dealing with bad credit (IRS debt etc. for several years, thankfully over!) and no way, no how on tradition lending.
We used a local company called Credit360consulting that was referred to us by our agent a year or so ago. They are amazing. (and cheap.. you only pay a small amount down, we paid $99.00 because our realtor TRISH JOHNSON [firstname.lastname@example.org] referred us to their program and only paid for what they removed after that (also very reasonable). Trish is an expert at owner financing pretty much anything. She is with the Trolley Team and Jay & his wife Diana Espinoza run Credit360 Consulting. (email@example.com) If you decide to give them a try, you can also say I referred you (Jeanene Lambert).
It only took them a couple of months to remove so much stuff off my credit. I literally saw our scored rise from the mid 500's to upwards of the 600's in a couple of months. I now have them working on my kids credit too. (my youngest son just was approved on his first home and my other son is having his worked on as we speak). I tried another company a few years ago that was a waste of time/money.. these guys I highly recommend.. ditto to all you other realtors reading this!)
Take care and good luck!~
Hope this helps.
Don Groff | REALTORÂ® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | firstname.lastname@example.org
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
I just answered a similar question. Most 1st time buyers are frustrated because they don't know what is needed to qualify for a mortgage. Your best bet is to contact a lender that is willing to review your credit with you and give you advice of what you need to do in order to qualify. Don't be discouraged it does take time, but it will happen.
Century 21 Rivera Realty
531 Williamstown Road
Sicklerville, NJ 08081
Phone: 856.404.9260, ext. 198
Find me on Facebook @ http://www.facebook.com/sjrealtorcaraesposito
Probably not. There are several components to a lender putting together a file for loan approval.
1) Credit Score for all borrowers ~ Lenders use a different analysis than you can find online.
2) Job history
5) ratio of current debts plus anticipated home's debt, insurance and taxes to income.