shaquana bul…, Renter in Brooklyn, NY

IF I HAVE NO CREDIT WHAT DOES THAT MEAN? WILL I STILL QUALIFY FOR THIS BEAUTIFUL HOME?

Asked by shaquana bullock, Brooklyn, NY Thu Feb 2, 2012

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Good afternoon shaquana,

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

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0 votes Thank Flag Link Wed Jun 5, 2013
GET A PRE APPROVAL LOAN FROM F. H. A., 3% DOWN LAST 12 MONTH RENT RECEIPTS. 3 REFERENCES TO START.

Diana Melerud
Superior Realty Broker
2008 Ave Y
Brooklyn, NY 11235
Office: 1(347)554-8282
Fax: 1(347)554-8283
Cell: 1(917)992-7239
Email: diana.melerud@gmail.com
See My Listings: http://diana.postlets.com
Superior Realty: http://www.superiorrealtyny.com/index.htm
0 votes Thank Flag Link Tue Jun 4, 2013
If you do not have a credit history, and you are considering to purchase real estate - my recommendation is to apply for credit. You can get a credit card secured by cash deposit, and after a short time frame (a year or less) - the credit card company will mail you back your initial deposit. At this point your secured credit card will become unsecured. As you are working to build your credit - work on beefing up the downpayment dollars.

Good luck!

Oleg Polonsky
Licensed Real Estate Representative
Trost Realty
2548 Coney Island Ave.
Brooklyn, NY 11223
646 256 0899 (Cell.)
0 votes Thank Flag Link Sat Feb 11, 2012
A lack of credit history may not necessarily prevent you from getting a mortgage, but you will have to pay a higher rate. You will be considered more of a risk because you are an unknown in terms of whether you pay bills on a timely basis. I would suggest applying for a card at a department store or two first. Then go for a major credit card. Pay on time and establish a credit history.
0 votes Thank Flag Link Fri Feb 10, 2012
If you do not have a credit history it means basically that you have not applied for any credit and therefore you do not have a credit history. Apply for a credit card with your bank or apply for a secured credit card to start building your credit history.

Your advantage is that you do not have bad credit and no credit is ok but there is not any history to judge your ability to repay any loans.

Once you start creating your credit history please make sure to protect it as it will follow you everywhere you go. It will be used from seeking employment to purchasing property and getting insurance.

If you have any further questions please feel free to contact me.
Web Reference: http://suzeorman.com/
0 votes Thank Flag Link Sun Feb 5, 2012
There is so much we do not know.
No credit is much better than bad credit.
Bad credit is better than denied credit.
Cash makes it all irrelevant.

However, what is unknown is for what are you trying to qualify?
Do you mean qualify for a Bank of America mortgage?
Do you mean qualify for a credit union mortgage?
Do you mean qualify for owner financing or rent to own, lease/option?
Do you mean hard money lending?
You may actually be referring to requirements of the community regarding age, pets and vehicle.

Sometimes the best answers are not so obvious.
Your situation and resources will determine your options. Contact your local Brooklyn real estate professional and they can shed greater clarity on what is most appropriate for you.

Best of success,
Annette Lawrence
ReMax Realtec Group
Palm Harbor, Fl
Web Reference: http://www.MyDunedin.com
0 votes Thank Flag Link Fri Feb 3, 2012
As others said, no credit is far better than bad credit. It means you've never owed anyone anything, and that's a good thing! However, it does make harder to qualify for a mortgage. If you go to some of your smaller local banks or credit unions and explain your situation you'll have much better luck than dealing with some of the large national banks. Some of these small banks keep mortgages in house rather than selling them to the secondary market.
0 votes Thank Flag Link Fri Feb 3, 2012
In answer to your question...NO!
0 votes Thank Flag Link Fri Feb 3, 2012
There are other factors besides credit that determine qualification, therefore visit with any licensed officer, after reviewing your overall financial information a determination can be made. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Fri Feb 3, 2012
Dear Shaquana,

No credit is better than bad credit. As Christine stated, you can sort of build credit if you have some form of reoccuring payments. In order to find out if you are qualified for a mortgage, you would have to meet with a mortgage broker who will review your income, debt, assets and credit. Then you can find out how much you can borrow, what type of interest rate you can expect and how much your monthly payments will be.

Then you can shop for a house with confidence. If I can be of further assistance, please contact me. Good luck.

Sincerely,
Mitchell Feldman
Associate Broker
Madison Estates & Properties
718-645-1665/ 917-805-0783
MitchellSFeldman@aol.com
0 votes Thank Flag Link Fri Feb 3, 2012
Shaquana, you do need credit to get a home mortgage. Talk to a mortgage professional. There are forms of credit that are considered alternative credit. For instance cell phone accounts, car insurance, and cable tv accounts may be some forms of alternative credit. Credit is only one of the items required for a home loan.
A lending professional will best be able to guide you as to what you have that may count as credit or what you can do to get started building your credit.

Good Luck,
Christine
0 votes Thank Flag Link Thu Feb 2, 2012
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