Home Buying in 15136>Question Details

Dmkohler, Home Buyer in 15136

me and my wifre are looking to buy a house we both have good jobs and can afford a house however our credit is not that great we have a few things ..

Asked by Dmkohler, 15136 Thu Oct 20, 2011

in collections from a few years ago , around 5,000 total and we were told buy an agent who ran our credit that we need to clear up the collections before anything can happen.. we are trying to look at other options such as rent to own if possible. i just dont know what options to do..thanks all

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Having collections (owing or not) from a few years ago isn't a dealbreaker to buy a home at all - was this a real estate agent or a mortgage loan officer who gave you the advice? If it was a real estate agent I'd recommend you speak with a mortgage loan officer instead. If you spoke with a loan officer and their only advice was to pay the collections then you need to speak to another one.

FHA, USDA & VA loan programs all do not require collections to be paid - and there should be plenty of homes available in McKees Rocks that fit within FHA's loan limit. Even conventional financing doesn't require collections to be paid unless the computer approval system says they need to. However you do need to have a qualifying credit score, and most lenders are looking for a 620 or 640 score, so if your score isn't at that level I'd recommend you continue to improve your credit by making all of your credit card payments on time, keeping credit card balances low, and going over your credit report to make sure there are no inaccuracies. You also need to have at least 12 months of clean credit, so besides the collections from a few years ago, if there are any more recent items such as late payments, charge-offs, or the like in the last 12 months, you would need to wait a little longer for those to be at least 12 months in the past.

What were the scores when the 'agent' checked your credit? Was it recent?
0 votes Thank Flag Link Thu Oct 20, 2011
Dmkohler, my advice is to follow your agent's advice about cleaning up your credit first, before you consider any other options. Do you have a stable job? Do you have a six month savings to ride thru & maintain a home during cathastrophic events? If not you are just going to fall into the same trap as what caused you to have bad credit. This his hard advice, but truly good advice to your situation.
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Thu Oct 20, 2011
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