Home Buying in Elizabethtown>Question Details

stephlopez12…, Home Buyer in Elizabethtown, NC

First time home buyer, new job and need tuo relocate with family (Mother of 2 young boys) Credit score 525. Guar future income increase.

Asked by stephlopez1228, Elizabethtown, NC Sun Jun 30, 2013

Price range of house $55,000 (HUD) distressed, or good condition house at 68,500. Interested in buying in Elizabethtown NC.
Will commute to Fayetteville. Fiance will commute to Wilmington.

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Good evening stephlopez1228,

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.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Wed Aug 14, 2013
If you are still looking for a contact for someone to help finance your situation, give me a call at 910-625-8199 or email erichillreal@hotmail.com. I know a couple of local investors that might be willing to talk with you.
0 votes Thank Flag Link Wed Aug 14, 2013
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