Often I meet clients who think their credit is, as you say, "not so good." When I review their credit we find they actually qualify for a mortgage loan!
You mention not fully paying off credit cards. Let me strongly caution you NOT to pay off your cards! In today's lending environment we definitely want to see accounts open and active with balances. I recommend speaking with an experienced Mortgage Banker to get properly prequalified. The Mortgage Banker will review your Income, Assets, and Credit. If you are not qualified due to your credit score, your Mortgage Banker can recommend a course of action to improve your credit and become qualified in the future.
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.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm
I am a Licensed Mortgage Loan Originator in New York State working for a Direct Lender. I have been helping First Time Buyers as a mortgage professional for 22+ years. If you wish to explore this further, I'd be happy to help!
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
NMLS#3528 http://www.phsloans.com... more
PSS> For your reading enjoyment I sold a 3/1 property at ~800 sf, ~7500sf lot size , no garage, no fireplace, no carport, newer (4 yr old) boiler w/ no central ac,. older roof (10 years+), newer kitch & bath,. for $155k - closing on Nov 30 2009. was in 12205 zip, right down the street (maybe 4-5 miles driving) in Maywood area..... more
At least 1 year due to seasoning requirements. And, IF a lender will due it prior to 1 year you can bet you pay big bucks for it.
Ultimately, what establishes the value of a property is what a seller is willing to sell it for and buyer is willing to able to pay for it. Thus, the underwriter will question the sudden appreciation of the property. In the current lending market I'd say be prepared that they might make you 'prove' the property has appreciated as much as you say it has.... more