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.
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I can provide FHA loans to borrowers with credit scores of 600 and above. I can assist borrowers nationwide.
PrimeLending, A PlainsCapital Company
I suggest that you get with a mortgage professional to see what your options are.
Jana MCCool - RE/MAX Austin Associates
Good day. Here is what the experts are saying, "If a first time home buyer wants to qualify for a loan, they will need a credit score of at least 660 unless they try for an FHA loan."
Things to consider:
1. Opinions vary on how high your score needs to be in order to get a home loan in this market.
There's a big difference between qualifying for a mortgage and getting the best interest rate on that mortgage. In order to get the best rate, you need an even higher score than you would need just to qualify for the loan.
2. Your credit score is just one of the things a lender will look at when considering your for a home loan. They'll also consider your debt-to-income ratio, the size of the loan in relation to your income, and other financial factors.
3. If you feel you have a decent score, and you want to know if you can get a loan, there's only one way to find out for sure. You have to apply and see what happens. You don't have anything to lose by applying for a mortgage loan (except a bit of time and energy).
Hope you find this information helpful. Please keep in mind that BuyersHouseRealty is in the buyer real estate education business, and we pay for our clients education.
Learn more>> http://www.buyershouserealty.com.z57preview.com/realtor_cont
Texas Mananging Broker/Realtor
"Showing You the Real Estate Rebate"
Lionel Laday, Realtor
Keller Williams Realty