Home Buying in 10314>Question Details

Fchun24, Home Buyer in Brooklyn, NY

Mortgage with poor credit score

Asked by Fchun24, Brooklyn, NY Sat Jul 14, 2012

Hi,

I am very interested in getting a property in Staten Island with home value around $220k to $250k. I can afford a 20% down payment. However, I have very low credit score due to bad payment history (around 550 I think). Please kindly provide any useful advise as I don't want to rent anymore! Tks.

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5
Lorraine Vella’s answer
Speak to some lenders to see what steps you need to take to improve your credit score. There are
programs for borrowers with credit scores less than 620 the programs are limited..good luck.
0 votes Thank Flag Link Sun Jul 15, 2012
fix your credit. start paying on time. clear old outstanding debts. review you credit report. make sure you correct any errors. dispute inaccurate info. get any negative info that's more than 7 years old removed by writing to each credit reporting agency.

try to get credit card balances for each card to 50% or less of the card's credit limit.

good luck
1 vote Thank Flag Link Sat Jun 1, 2013
Good even Fchun24,

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
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
1 vote Thank Flag Link Wed Apr 24, 2013
For a personalized answer regarding mortgage qualification do visit with any liensed loan officer; he/she may offer great suggestions as to what needs to be done in order to improve your credit; keep in mind the better the score, the better the rate.....
0 votes Thank Flag Link Sun Jul 15, 2012
Hello Fchun24,
The first step you should perform is getting your credit cleaned up and improved. If there are any mistakes on your credit report then contact those institutions to have them removed.

Also, I suggest that you contact a few mortgage lenders or brokers to determine what they have to say about your credit and how you can further improve it so that you can purchase a home sooner rather than later.

Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Sat Jul 14, 2012
Hi, I'm not licensed in the state of NY to recommend any mortgage lenders but I suggest clicking on the "Find A Pro" tab at the top of the screen to see if there are some mortgage brokers registered on the Trulia site that might help you.
Good luck!
Flag Sun Jul 15, 2012
Dear Laura,

Thank you. I have already checked my credit report and no error there. Also I have setup security loan and credit card recently (last few weeks) hoping it can help bring up my credit score. Do you have any mortgage lenders or brokers you can recommend to me?

Tks again.
Flag Sun Jul 15, 2012
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