Home Buying in Tampa>Question Details

Daniel, Home Buyer in Lakeland, FL

Looking into buying a home..Poor score

Asked by Daniel, Lakeland, FL Fri Jan 25, 2013

EQ Fico is 609 and rising. Have an account with NFCU and looking at homes as we speak. What are the odds of getting approved? Any recommended lenders?

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Answers

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You need to stop looking for homes and not waste any realtor's time until you get your own house in order and clean up your credit.

The credit score is not all that matters, Getting to the 620 score just gets you into the dance, you still have to get a lender to dance with you.

How do you know you have a 609 score? If you did a WORTHLESS online FICO (aka FAKE-O in the mortgage industry) credit check, you're actual MORTGAGE credit score could be much lower.

See this about "ONLINE" credit scores: http://www.trulia.com/blog/steve_31/2012/07/using_real_estat…

If you want someone who will not sugar coat things and tell you the facts, contact me and I'll help you if you're willing to put forth the effort to help yourself.

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1 vote Thank Flag Link Sat Jan 26, 2013
Steve, thanks for your response. I almost didn't respond but I feel I have to. I don't sugar coat things either and appreciate your honesty, but you sounded extremely arrogant from the keyboard. For your information, I've been a member of myfico.com for 8 months, and my FICO score has gone up from 503 in October 2012 to 609 on today's date. I do know that a FAKO score is, compared to a true FICO score and my fako scores are actually in the 630's throughout the 3 CRA's. Before assuming that I was actually in the 500's and just giving you a FAKO score, you should've gotten to know a little information about my situation before jumping to the keyboard to write something absolutely irrelevant to my situation.
Flag Sat Jan 26, 2013
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With compensating factors borrowers can go FHA down to a 580 score..

See loan programs at: http://www.pro-option.com

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0 votes Thank Flag Link Mon Jun 10, 2013
Good afternoon Daniel,

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.consumer.ftc.gov/articles/0058-credit-repair-how-…

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 Mon Jun 10, 2013
Daniel, You can raise your credit scores with focused effort and considerable work.

First pull your credit report from all three repositories.
Second, you need two credit card accounts aged two years or more. Close all others.
Third, evaluate any accounts that reflect slow pays if current. call agency and close them
Fourth, bring any and all accounts current. This is not an easy task, especially if the account has been sent to collections. You will have to track all creditors for that one account and work with each one to get them to sign off when you pay the creditor now in control. For example, if you owe dr. medicine $100. and that account was never paid. Now there are three collection agencies that have purchased that collection and are seeking closure. Work with the most recent. Pay it off. get a receipt. Go back to dr. medicine, and the previous creditors with your receipt and have them release the lien with all three repositories. This can take up to 90 days for the updating of the accounts.
Fifth once you have successfully, rectified the past due accounts, your credit score might drop and then bounce upwards in a spike.
Thus, it might take six months for you to gain 150 point increase on your credit scores.

Today credit is so important. It is essential for you to work on cleaning up the derogatory notations so you can secure competitive interest rates.

Best regards,

Lynn Brock
Brock Realty Inc.
941.313.1234
http://www.brockrealty-inc.com

If you would like to search the MLS like an agent, visit our website and sign up for your free Listing Book account. This powerful search program allows you to set up your personal homefinder criteria and save your favorite homes, follow recent solds all in real time! Find the home you’re searching for quickly.
0 votes Thank Flag Link Sun Jun 9, 2013
Hi Daniel,

If I were your Agent, here's the exact conversation we would have:

"Daniel, I appreciate that you're getting your credit profile in order at this time, so that you are in a position to make a home purchase in the very near future. However, at this time, I don't think it would be prudent to begin actively looking at homes until we can get you a secured pre-approval letter from a qualified lender. That being said, I would like to refer you to a preferred lending partner of ours, have them review your credit profile in its current condition & make some recommendations as to how to jump to an "approval" status in the shortest amount of time. By following their recommendations, you'll reach your goal much quicker than going at it alone, and then they'll be able to provide you with a solidified pre-approval letter. At that time, we'll know EXACTLY what you can afford to purchase, and make our buying strategy from there. After all, you wouldn't go to the grocery store without knowing how much money you could spend on groceries, would you? In the meantime, I'd like to set you up with an active home buying account so I can send you properties available, so that you're beginning to take an understanding of what the current marketplace is doing in your desired/target market area(s). I'll keep you updated with the new listings, the fluctuation in active market times & sales prices, all while you are working to reach your goal for becoming pre-approved. How does that sound?"

This is a pro-active approach to resolving the situation w/your credit profile, while still educating yourself on the local marketplace. All in preparation to reach your goal of purchasing a home!

Where is it that you're looking to purchase? I see you're from Lakeland, looking in Tampa. Please feel free to review our communities served, as well as our financing details online 24/7 at http://www.profusionpg.net!

Best of luck & hope this helps!
0 votes Thank Flag Link Mon Jan 28, 2013
Not enough information to make a lending decision. There are many ways to finance a home purchase. Complete an application at our website and we can advise your best course of action.
0 votes Thank Flag Link Sat Jan 26, 2013
If your credit score is really 609 and rising, that tells me that you are working on getting some things taken care of in regards to your credit. Most lenders will not consider anyone lower than a 620 credit score. The good news is that you are almost there! I work with a mortgage loan originator that has access to over 500 lenders. She can give you advice and help you find a loan. Her next question would be...do you have any money to put down on your new home? Obviously, the better your credit score and the more money you have to put down, the better your loan rate. Once you are really ready, pick a realtor who can guide you through the process.
0 votes Thank Flag Link Sat Jan 26, 2013
Daniel,

I have a few lenders that I recommend to my clients. Each lender has different strengths like each Realtor does. You are allowed to look at different lenders and shop around for the best rates. You are not required to use only your bank or credit union. I always tell my clients to get a couple of different offers.

Pam Wirth is one of the best in the business; she works for her clients to find them the best deal so they can purchase the most with their money. She will not pressure you; just honestly explain how everything works and what you qualify for. She can give you recommendations on things to do to help with that score and make homeownership a true reality.

If you are not working with a Realtor, I would love to help you find a home in Lakeland or Tampa or most of the counties around us. I will answer your questions, give you advice based off my years of experience and help guide you to having a home.

Please review my profile on Trulia and send me a message, or you can email me directly at THOYT@prutropical.com. I can then send you Pam's information and help answer any questions you have.

No pressure, just help.

Respectfully,
Tracy Hoyt
Realtor
Prudential Tropical Realty
0 votes Thank Flag Link Sat Jan 26, 2013
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