Comer8486, Home Buyer in Goodlettsville, TN

If one company denies you for a home loan would most other banks too? The one company told us it would be 8 mos. or so before we'd be approved.

Asked by Comer8486, Goodlettsville, TN Sat Apr 21, 2012

I'm more interested in buying rather than renting, but our credit score is not a 620 yet. We'd be first time home buyers.

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I have found that if you are qualified and great loan officer can make it happen. I recently had an issue as the seller's agent where the buyer had gone to a bogus loan company who put him in the stack and pretty much denied him without digging for other, creative options. With his agent's permission, I had my lender with SWBC call him up, get some things fixed or researched and we closed only three weeks late. Happy seller, happy buyer. Phil Miller with SWBC is a miracle man 615-268-0231.
1 vote Thank Flag Link Sat Apr 21, 2012
Usually if there is a reason for the denial, it will be the same with other companies, they all look at the same issues. Please speak to an agent in your area about a possible Lease Purchase, that way you will not necessarily need to wait 8 months to move into your new home!
Good Luck!
1 vote Thank Flag Link Sat Apr 21, 2012
Good morning Comer,

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
0 votes Thank Flag Link Sun Apr 22, 2012
Thank you Trevor, great information for the future home buyer! As I said once you find a good mortgage person stick with them! Thank you again, I am sure everyone will appreciate this input!
Flag Sun Apr 22, 2012
Thank you! I appreciate the advice.
0 votes Thank Flag Link Sat Apr 21, 2012
I agree with Brian, if you are Qualified any good Loan Offiicer can make it happen.

As you pointed out in your question, they did look at your information and told you it would be 8 months... So your loan application was not placed at the bottom of a pile.. all I will say is stick to a good loan officer and avoid lenders that charge enormous fees and charges just to get you into a home...You can always get a second opinion, however please be careful!
Good Luck again!
0 votes Thank Flag Link Sat Apr 21, 2012
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