Home Buying in Brick>Question Details

Eric Leshin, Home Buyer in Howell, NJ

Good Income and Jobs Plus bad Credit equals major problems. What can we do?

Asked by Eric Leshin, Howell, NJ Thu Jan 31, 2013

My wife and I are in a situation where we both have good jobs and, combined, make very good income. However, our credit is bad due to the errors of our youth. We are paying for those errors now.We have a 3 year old daughter and one on the way, and we are desperate for a place to live where the will work with us. Does anyone know what we can do?

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Good afternoon Eric,

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

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1 vote Thank Flag Link Wed May 29, 2013
Depending on how long ago the negative items have been on your report, you can rebuild your credit. It will be helpful for you both to speak to a professional mortgage broker who can give you some insight on what you will need to do. Rent to own can also be an option if you have down payment funds.
1 vote Thank Flag Link Thu Jan 31, 2013
I know of a rent to own situation in Toms River. Contact me for more details.
1 vote Thank Flag Link Thu Jan 31, 2013
You may look for a home that the seller will hold the mortgage for you or lease purchase.
0 votes Thank Flag Link Tue May 28, 2013
While I simply can't give you a yes or no answer without understanding your scenario in greater depth, I can tell you that I work with several lenders who will allow low credit scores. In the event you don't qualify for a mortgage I will show you exactly what needs to be done in order to qualify. I'd like to help you explore all options so please call me at your earliest convenience; (201) 957-6768.

Kindest regards,

Paul Marzolla
Loan Officer
(201) 957-6768
0 votes Thank Flag Link Tue Feb 5, 2013
Another good source is Gene Stravinsky. He's a mortgage banker with many years in the business. He's also honest to deal with and doesn't give all the hype as many others do. His zillow profile is http://www.zillow.com/profile/Advantage2/ so check him out as well.

Gene Stravinsky
Advantage Financial Mortgage Service
2365 State Highway 33
Robbinsville,NJ 08691

Office:(609) 259-8100
0 votes Thank Flag Link Thu Jan 31, 2013
Speak with Marvin Rosenberg from Residential Finance Corporation in Manalapan. He is excellent and knowledgeable, best financing specialist I've come across in over 8 years in the business. More than likely there will be a few different solutions depending on your situation. Some options he may suggest may include the possibility of using a co-signer if possible for a more immediate solution or giving you some suggestions on how to raise your score. Either way, he'll give you honest, knowledgeable advice to help you out.

Here is Marvin's contact info:
Marvin Rosenberg
Residential Finance Corporation
225 Gordons Corner Rd, 1D
Manalapan, NJ 07726
732.446.2900 Ext 202
877.814.9837 Fax
Company NMLS ID: 1652
Individual NMLS ID: 199005

If you need any assistance from a real estate perspective as you move along I'm happy to help. I specialize in helping 1st time buyers in the Monmouth and Ocean County areas. Hope this helps!

Jason 'Jay' Garrett
Sales Associate
RE/MAX Champions
Direct: 1.732.580.4712 | Office: 1.732.441.3400 | Fax: 1.732.441.3621
Email: jayjgarrett@gmail.com
0 votes Thank Flag Link Thu Jan 31, 2013
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