Kxid, Other/Just Looking in Hendersonville, TN

bad credit and income @ 1500/month . is it possible to buy a house . i can afford 850/month

Asked by Kxid, Hendersonville, TN Thu Sep 25, 2008

bad credit and income @ 1500/month . is it possible to buy a house . i can afford 850/month.
who can help and how .

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Answers

3
Kxid,
It is not so much what you think you can afford but, what the lenders say you can afford. They usually (depending on the lender) use a formula to determine how much in a mortgage payment they would allow you to have. Thereby determining how much you could borrow. Of course how bad your credit is will be taken into account. You really need to find a mortgage banker or broker that will work with you to first see if you qualify and then if you do not, to get you on the right track to get that approval. Sometimes it is some simple things that you have not done that can make a difference in your credit.
Also do you have money for a down payment? You will need to start saving some if not.
There is always the lease/purchase option. You can lease a home with the option to buy it as soon as you are able. You would generally have to put money down for the option (which would be non-refundable if you did not buy) which will lock in your price. In many cases you can negotiate that a percentage of you lease payment go toward your purchase price also.

Hope this helps,
2 votes Thank Flag Link Thu Sep 25, 2008
The later part of Larry's answer is probably your best bet. If your "bad credit" is due to credit card debt, then your best option would be a lease purchase. With specific parameters written in to benefit you as well as th seller, both parties end up in a win/win situation. Especially in the current market, the buyer is benefitied by being able to negotiate an agreed upon price based on the "current market" vs. what the market will bear in say, 8-12 months from now. As the industry begins to recover the value of homes will increase thus, locking in a price now through a lease/purchase is definetly a good move. Secondly, with the correct type of lease purchase agreement, the buyer is able to work on having their credit corrected so that when the purchase option date comes due, the buyer is in a much better financial/credit position to obtain financing. Buyer does, however have to put down a non-refundable option consideration fee, which they lose if buyer does not go through with option agreement. Something to think about, but a professional realtor that has worked these type of transactions will be able to clarify all the specifics. IN this market, I'm seeing more and more buyers looking for lease purchases... good for the buyer,,,good for the seller!
Excellent question - - hope you got your answer. If you need more info, let us know.
Tina Evans, Principal Broker
Web Reference: http://threediamondstn.com
1 vote Thank Flag Link Fri Sep 26, 2008
Your best bet is to sit down with a local and trusted mortgage broker, stay away from the internet lenders. they will be able to pull your credit and let you know what you can or cant afford. As well if you do not qualify now, they will be able to tell you what you have to do to be able to get a loan and how long they think it will take. good luck
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Fri Sep 26, 2008
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