Home Buying in 19720>Question Details

EPine, Home Buyer in New Castle, DE

Credit score below 600.

Asked by EPine, New Castle, DE Mon Feb 4, 2013

Is it possible to get a mortgage when your credit score is below 600? My three scores are 564, 587, 591.

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Good afternoon EPine,

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. https://www.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.consumer.ftc.gov/articles/0058-credit-repair-how-…

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

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1 vote Thank Flag Link Mon Feb 4, 2013
Its important that the information you gather is correct. The wrong answer can be discouraging or confusing and lead you off in the wrong direction. So I have some advise if I may. I have seen literally hundreds of times a good loan officer who knows credit requirements suggest simple and quick challanges to the credit agencies and the credit requirment changes quickly to an acceptable rate. Your first step should be to find an experienced ethical loan officer who offers all of the loan types including first time buyer loans and assistance in your state if you are a first time buyer. Which someone who has not owned their primary residence for three years.
Your first step is to locate and identify and ethical experienced loan officer. The know credit relative to home loans better than anyone.
To be successfull and leverage your potential the home buying process requires a specfic order of the steps you take and experienced ethical people to represent you. If you check out Your-Road-Home.com you will find a very specific and proven step by step process explained in a series of articles that are the writen version of a seminar for first time home buyers I delivered to over 25,000 people. The articles are numbered so you read them in the order of the steps that will lead you to your goal. Good Luck! And dont let anyone or anything discourage you. Owning your own home will change your life,for the better. Good Luck! Stephen Webber, Your-Road-Home.com
0 votes Thank Flag Link Mon Feb 4, 2013
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