Home Buying in Greensboro>Question Details

Deborah, Home Buyer in

How can I purchase a house in greensboro,nc with a 450 score?

Asked by Deborah, Mon Dec 24, 2007

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Go to your local non profit housing group for credit counseling. The counselor will go over your credit report with you. They will tell you what you are doing wrong and what you should be doing. Listen to them and when your score is 640+ you can think of buying.
0 votes Thank Flag Link Fri Mar 2, 2012
A couple items that others have not mentioned: Review your credit report carefully. If you had collection accounts in the past, they can be sold/transferred to another agency. This results in a "new" account number and a "newer" date of acct opening. The original date of 1st delinquency is the starting point for the 7 year rule, not the date that the account was opened. Make sure you request that older items than 7 years be removed immediately. Remember if you pay $$ toward a past due bill, the 7 year mark starts over. So be careful paying off debt that is almost 7 years old. Send the credit agencies the request to remove in writing! Also, if you pay down the credit cards - great idea - make sure you do not leave the account empty too long. Some companies will close a credit card that has no balance and no purchases within a few years time. You definitely do not want to lose that available credit. For more information on how to legally fix your credit, check out the Fair Credit Reporting Act online. Good luck.
0 votes Thank Flag Link Fri Mar 2, 2012
Have you considered a lease option - that way you have a year to re-establish your credit. You need that 12 month period without any negative information on your credit report.
0 votes Thank Flag Link Thu Feb 7, 2008
Hi Deborah,
Currently, I am seeing that a credit score has got to be in the mid 500's with no "lates" in the past 12 months. With that being said, you need to get that credit score bumped up. The way to start this process is fairly easy, but the results are not overnight. 1) go online to http://www.optoutprescreen.com and select the block that says to STOP sending junk mail and advertisements for you to purchase. A lender has advised our office that this will bump up your credit score within 7 to 10 days, by maybe 10 or 20 points. This is where you are showing the credit bureas that you do NOT want to receive OFFERS to buy new cars, get new signature loans at huge interest rates or new credit cards. Once you say Stop sending this, it triggers the bureaus to say, HEY...if she doesn't get the offers, she is less likely to buy and run her debt ration up. 2) Look at all your credit cards and loans. You need to pay ALL of the credit cards down by 50% of the Credit Limit. If the card has a $1,000 limit, make sure it does not reach a $500+ balance owed.....this will increase your score drastically according to all the mortgage lenders I deal with. If you cannot pay on all of them at one time to get them paid down.....pay the minimums on all of them EXCEPT the one with the HIGHEST interest rate....pay that one totally to zero....BUT do NOT CLOSE ITOUT. Cut that card up....and each time it renews....cut it up. It will show that you have a zero balance, that you paid it in full.....AND..... you have that much AVAILABLE CREDIT AT YOUR DISPOSAL. If you close out the account.....you will mess up that "line of credit" that is available....but remember its just for LOOKS....dont' go charge on it again!! Keep doing this until you get them all paid down or off....but each time you get below the 50% mark, you've bumped your score even higher. After you do these 2 tasks and you are keeping all your others bills up to date, no lates (over 30 days) and no NEW CHARGES or NEW CARDS....go find a reputable lender to run a pre-qualification loan app to see what your scores are and see what you qualify for....they should tell you where to go from there....but for now....this is a good head start. If you need the name of a lender.....ask around...but ask for references!!!
0 votes Thank Flag Link Wed Jan 2, 2008
I assume that your credit score is low because you have had financial problems and may still. First be sure that you have all your credit cards paid off. Next get your credit report and if there are any items on your report that don't belong there call and get them erased. Over the next year be sure you pay all your bills on time. That will bring your credit score up and should qualify you for a home and a much better interest rate.
0 votes Thank Flag Link Mon Dec 24, 2007
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