Home Ownership in Charlotte>Question Details

Kyeshiad, Home Buyer in New York, NY

Repairing bad credit with debt mainly from student loans. Is preparing for a starter home out of the question in the near future?

Asked by Kyeshiad, New York, NY Mon Oct 15, 2012

Graduated 5yrs ago with great credit. Recent years havent bode well for that Great career, but still interested in purchasing a home asap while market is buyer friendly.

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Daniel Fisher’s answer
Good afternoon, Kyeshiad:
Here are also 10 tips for improving credit here: http://www.trulia.com/blog/dfisher/2011/08/ten_tips_for_repa… . I also suggest that you review the Trulia Blog "I have bad credit and no savings. Can I get a home or am I stuck renting?" (link below) If you meet this criteria, you can often get a loan. There are also several options for special financing and first time home buyer down payment assistance programs. Depending on your circumstances, you may be able to purchase sooner than you think. A brief phone conversation would fairly quickly get to the bottom of things and give you the direction you need. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
0 votes Thank Flag Link Mon Oct 15, 2012
Just don’t lie about anything you are trying to “repair” that is a serious crime. Most of the so called credit repair experts will tell you to dispute everything on the credit report that is negative. If you know the info is correct don’t dispute it. Yeah, I know, they tell you the law protects you and makes the burden of proof upon the lender, this is true. But that law is there to protect you, NOT to commit mortgage fraud. Don’t fall into that trap, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon Oct 15, 2012
It would not hurt to talk to a credit repair specialist. I have a great one that I work with his name is Adam Kunda his number is 303-747-6390. That is a good place to start. To start your home search check out the link below.
0 votes Thank Flag Link Mon Oct 15, 2012
Generally speaking, you want to have diverse (installment, revolving, mortgage) credit accounts open, active and reporting positive account history. While student loans are good installment loans to pay, you may want to add a revolving line of credit as well; a credit card will do wonders for those who currently don't have one.

Of course as others have mentioned, consult with a loan officer as well.
0 votes Thank Flag Link Mon Oct 15, 2012
While it only takes a moment to damage your credit, it takes much longer to repair it.

Start on the path to good credit. Pay your bills promptly (even if it's just the minimum amount)... in fact, pay them early. Be consistent. Don't open new credit, no new gas cards, no department stores, no nuthin'.

It may take a while, but your credit will improve slowly.
0 votes Thank Flag Link Mon Oct 15, 2012
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Don't give up on the career dream nor the dream of homeownership!!! All things are possible. The first step in the achievement of anything is to have a clear understanding of "whatcha workin' with!" You do need to know what your credit score is to start the process. A minimum score of 640 will start to open doors for you. There are a few ways to get that information: You can get it free once a year from http://www.annualcreditreport.com, you can visit any Wells Fargo branch (for a limited time) and get a code to get it free on line or you can call a lender (me!) and have them pull the information for you. The advantage of using a lender is that if you're actually in the "good to go" range, you can continue your inquisition into the requirements for actually obtaining a home loan. There are so many great programs out right now that make it easy to realize the dream of homeownership!

I know you'll get the career and I know you'll get the home. Never stop, never stop, never stop trying!!!

Montressa Barbee
NMLS#877320
Wells Fargo Home Mortgage
704-776-0596
0 votes Thank Flag Link Mon Oct 15, 2012
My best advice to you is to contact a trusted and experienced mortgage lender and ask that they meet with you. The lender will pull your credit and discuss with you your current credit worthiness, any challenges you have and will also help you devise a plan to clean up your credit so that you can qualify to buy a home. Remember that the better your credit score, the better interest rate you will get, so it is often prudent to wait to buy a home until you are in a more solid financial position. Best success! Kathleen Turner
0 votes Thank Flag Link Mon Oct 15, 2012
Kyeshiad,

That is a good question. You need to talk to a mortgage consultant that can tell you what appears on your credit and what you need to do to qualify for a mortgage. generally, I work with a lender that if your middle credit score of the three credit bureaus is at least a 600 he possibly can get you qualified for an FHA loan with 3.5% down.

the catch to this is your student loans. I recently had someone that met hte credit criteria and income fell in line with the price point fo the house they wanted to buy...However; they were delinquent on their student loans and the mortgage broekr told them that they had to get them current and the student loans had to be current of at least 6 months to qualify for an FHA mortgage.

If you want an honest answer give the mrotgage broker I use Chris Ayer a call. his cell phone number si 704-771-3954. If he cannot qualify you he will at least tell you what you need to do to qualify and how long it may take.

Dave diCecco
Realtor/Broker
Coldwell Banker United
http://www.davedicecco.com
0 votes Thank Flag Link Mon Oct 15, 2012
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