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.
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
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Superior Realty Broker
2008 Ave Y
Brooklyn, NY 11235
See My Listings: http://diana.postlets.com
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Licensed Real Estate Representative
2548 Coney Island Ave.
Brooklyn, NY 11223
646 256 0899 (Cell.)
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.
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,
ReMax Realtec Group
Palm Harbor, Fl
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.
Madison Estates & Properties
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.