Home Buying in Wilmington>Question Details

Dreamofmyown…, Home Buyer in Wilmington, DE

What are the chances of someone with poor credit re-establishing their credit history and purchasing a home as a first time home buyer?

Asked by Dreamofmyownhome, Wilmington, DE Mon Nov 9, 2009

I have never owned a home and have rented all of my life. I've worked steadily at the same place of employment for 18 years (after a 3 1/2 tour in the U. S. Army) and rasied my daughter as a single parent. Unfortunately I was not good with budget, paying bills on time or saving money. It seems like I have lived pay check to pay check and not being responsible enough handle my finances like I should have. Now I am paying the price at 51 years old.

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There's no problem re-establishing your credit. The question is: How long will it take? Talk to a good mortgage broker for guidance. (Don't use those "credit repair" services.)

Depending on how poor your credit is, it could take 12-24 months (or longer) to repair it. And if you're still living paycheck to paycheck, you'll have to save up some money for a downpayment as well.

Good luck.
2 votes Thank Flag Link Mon Nov 9, 2009
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Great answer Don Tepper!

Your chances are good sir, maybe a housing counselor can assist better than a credit agency. I can tell you dozens of sad stories from consumers who have failed using credit counseling agencies. In my opinion, they just don't work. You may be surprised to know how fast you can heal your own credit and start utilizing your credit benefits towards a purchase of a new home. You have mentioned beling military, so maybe a VA loan or a Rural Housing loan could assist you in purchasing your 1st home.

Thanks for your service to our country and wish you success on purchasing a home.
0 votes Thank Flag Link Mon Jan 4, 2010
The chances are excellent. "All" you have to do is get back to paying your bills on time, and not having a boatload of debt. For a while. And do what Don suggests.
0 votes Thank Flag Link Wed Dec 2, 2009
Dear Dreamofmyownhome,

Don't beat yourself up. Many people, particularly divorced women, are in your same position. And the current economy sure doesn't help. I would strongly suggest that you get in touch with the New Castle County consultant for first time home buyers. You can do this trhough the YWCA or N-Call in downtown Wilmington. I have a lender that I use frequently who also has this information. These organizations will counsel you as a first time home buyer and help you establish a budget and show you how to manage your money so you can get on the right path. Start right now by saving 10% of your paycheck each and every payday. Pay your bills on time every month... no excuses. Set up automatic bill paying on line - this can usually be done through your bank. Have your routine bills paid automatically this way, like gas & electric, phone, water, any credit card bills. ING is a great bank for establishing a consistent savings plan. Open an account there & have money automatically transferred to it every payday. You will be surprised how fast your savings will grow.

If you have any questions, please don't hesitate to email me at driffee@psre.com. With a little resolve and consistency, you can do this!
0 votes Thank Flag Link Wed Dec 2, 2009
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