Home Buying in Palmerton>Question Details

Laura Konze, Home Buyer in Palmerton, PA


Asked by Laura Konze, Palmerton, PA Wed May 23, 2012

My score is a 580ish, $10,000 down & I gross $58k a year. But no one will help me. I and currently paying $900 per month in rent plus all (And I mean ALL) utilities. I am a first time home buyer and I just want a chance.

Help the community by answering this question:


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 http://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.ftc.gov/bcp/edu/microsites/moneymatters/dealing-w…

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 Tue May 29, 2012
Laura, It looks like your income is solid and you have money saved, which is great. In order to get the best rate/product you'll want to get your credit score up to 620-640 to get pre approved for a mortgage. If you are motivated to purchase, raising your score from 580 to 640 may not take that long (maybe a few months). If Alan can help you with the score "as is" I'd use him but if you want to improve your credit I have a great credit guy who I go to for assistance if we need to get him involved.
Thanks for the chance to earn your business.

Chad E. Bahnsen- Mortgage Originator, NMLS# 127719
Mortgage Network, Inc.- Corporate NMLS# 2668
14 E. Stratford Ave Ste 3C
Lansdowne, PA 19050
Cell: 610-457-7262
Office: 610 622-2212
Fax: 1-866-590-3806
E-mail: cbahnsen@mortgagenetwork.com
Licensed by the Pennsylvania Department of Banking
0 votes Thank Flag Link Tue May 29, 2012
Hello Laura,

I can help you with that score. Give me a call 215 953 0800. I am in the office right now.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
NMLS ID 143960
0 votes Thank Flag Link Wed May 23, 2012
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