Home Buying in 60618>Question Details

Adriana Rubio, Renter in 49612

I'm looking to stop renting and buy a home for my kids and myself. My credit is not looking good, how do I start getting this fixed?

Asked by Adriana Rubio, 49612 Mon Apr 7, 2014

Help the community by answering this question:


Good for you for seeking help! Mortgage rates go up for those with low FICO scores (see below), so you definitely want to get your credit in check. I agree with others about obtaining a free credit report so you know where you stand, and hiring a great company to repair major damages, but I might also suggest not opening up any other lines of credit - this can negatively affect your score.

All the best to you!
1 vote Thank Flag Link Tue Apr 8, 2014
I would start by getting a current credit report. You have a legal right to a free credit report once a year. Go online and order one. Then you can review what your issues are and go from there.
1 vote Thank Flag Link Tue Apr 8, 2014
You can work with a lender who can help fix your credit.
1 vote Thank Flag Link Tue Apr 8, 2014
The answer depends on what's wrong. If you have a bankruptcy or a foreclosure that is much harder to work around then a few missed payments 5 years back.

Have a lender pull your credit and identify the worst items effecting your score and then hire a reputable credit repair company to help you get it all fixed up.
1 vote Thank Flag Link Mon Apr 7, 2014
Who would be a reputable company to work with? (thank you for the reply)
Flag Mon Apr 7, 2014
Contact Kelly Price, 773-501-6653, kprice@wintrustmortgage.com

She can run your credit, identify the issues and give you a game plan to work towards improving your credit. Then when you're ready I'll be waiting for you with open arms! :0)

Good luck!
1 vote Thank Flag Link Mon Apr 7, 2014
Congratulations on taking the first step. Fixing credit depends on what is/was wrong with it, but the basic steps are to pay bills on time or early. Use, but do not abuse credit. This means only buy on credit what you can pay cash for. When you get stretched out financially, you get stressed out personally and things go down hill. Keep your balances low. If you have collections, pay off any recent ones, but not older ones until instructed by your mortgage lender. Do not close any accounts, but if you feel tempted to shop for what you can't afford take the cards out of your wallet and put them away.
1 vote Thank Flag Link Mon Apr 7, 2014
One last thought. Saving money, even just a little every week adds up and can protect you from emergencies that cause you to go back into debt. Eliminating as much debt as possible will better position you to qualify for a mortgage.
Flag Mon Apr 7, 2014
Step 1: Go to CreditKarma.com and set up free monitoring account
Step 2: Go to your bank and order a secured credit card in the amount of $300
Step 3: Start using it to pay for gas. Never spend over 30% and pay off the amount as soon as the balance hits so you're never charged interest. (I did this and it raised my scored about 10 points every month).
Step 4: Get 1 more secured cards for the same amount and repeat.
Step 5: Repeat process. (so you have 3 lines of revolving credit). Again use them only for everyday purchases and never go over 30%
Step 5: Write to the credit bureaus to remove negative inquiries off your credit. Creditors only have X number of days to respond. If they don't then it has to be removed.
Step 6: Call a loan officer. Have them run your credit and look at your numbers. Your debt to income ratio will need to be under 43% to qualify for a QM loan product. Talk with them about various loan programs and see which is the best fit for you. There are several low down payment programs available and many times family member can gift your down payment should you need some help there.
Step 7: Create a saving schedule & debt reduction plan. This may require talking to a specialist but you might be able to do this on your own with proper research and planning.

Best of luck!
0 votes Thank Flag Link Thu Feb 12, 2015
That's great! The best thing to do is get in touch with a professional lender and they can suggest options to getting your credit on the path to home- buying in as little time as possible. :)

If you want me to have one of my lender partners reach out to you to make this a smooth process and get this going for you, please let me know. They will be able to walk you through what you'll need to know moving forward- I would love to assist!

925-785-2724 (call or TEXT) or kristinackermann@kw.com

Thank you!
0 votes Thank Flag Link Thu Feb 12, 2015
Have you been able to repair your credit?
0 votes Thank Flag Link Thu Feb 12, 2015
Hi Aici,

It's good that you've considered purchasing a home. It could actually be cheaper to buy rather than rent. Even if your credit isn't that great as I do have a mortgage product that assist people with purchasing property in specific areas. There's also down payment assistance money available for Illinois & Indiana that provides $6,000, $7,500, $10,000 and $15,000. You can couple several down payment programs together which makes for a larger down payment. The downpayment programs have some restrictions so please call me to discuss them in detail.

Shaunta Gray
Coldwell Banker Residential
0 votes Thank Flag Link Wed Aug 27, 2014
If you are still in the market to purchase, please know I can provide financing options with credit scores down to 550. 550 - 580 scores require 10% down and 580+ require 3.5% down. If you are a veteran, you can purchase with 0 down. Feel free to contact me for more info.
Larry Bernstein
Cell: (847) 815 - 8229
Em: lbernstein@afncorp.com
Web: http://larrybernstein.afncorp.com

Thank you.
0 votes Thank Flag Link Wed Aug 27, 2014
Hire a credit repair company? Talk to a lender and tell them you want to get preapproved. They will pull your credit and determine what you need to take care of on it to bump up your scores. It's not rocket science for them.

My brother is a lender and can help you get your credit fixed for FREE.
0 votes Thank Flag Link Tue Jul 15, 2014
As many have shared here, find a LOCAL lender that is willing to help you work through your credit issues. Start saving money, there are several blogs online that can give you tips about how to think about spending money differently. Google Save More Money. You can have more money in 2 ways. Earn More or Spend Less. Write down where every penny of your money goes, and look at that to cut out the things you really don't need.

0 votes Thank Flag Link Sun Jul 13, 2014
Have a lender pull your credit and identify the worst items effecting your score and then hire a reputable credit repair company to help you work on getting it fixed. In most cases, it will take time...but it's worth the effort.
0 votes Thank Flag Link Fri Jul 11, 2014
I would contact a lender to get some advice.
0 votes Thank Flag Link Fri Jul 11, 2014
work with a lender by the name of Jim Strong as he will help you with your credit situation and get you financed when you are ready. (read my blog about where I had a lender help someone with bad credit) Please contact me (Jeff.Nobleza@BairdWarner.com) when you are ready to talk about looking at homes.

Jim Strong
Loan Officer
American Portfolio Mortgage Corp.
Office 708-290-3151
Fax 708-529-3415
Cell 708-299-1804
5165 W. 111th St Alsip IL 60803
E-mail jstrong@goapmc.com
NMLS # 230202 IL License # 031:0007342
IN License # 175656
0 votes Thank Flag Link Tue Apr 8, 2014
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