Home Buying in Philadelphia>Question Details

Jacqueline I…, Home Buyer in 19124

Hi, my husband's credit history is only about 18 months long at present time, mine a couple of years longer,

Asked by Jacqueline Irving Jones, 19124 Sun Feb 8, 2009

I have student loans in good standing being repaid, and he has one credit card that had one late payment. We are looking at purchasing a home this time next year, if we were to pay our debts each month, on time, but our credit scores are still below average, what are our chances that we will be able to buy a home next February-June?

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Hi Jacqueline,

A question that I would have for you would be if you both have any money for down payment or closing costs which is extremely important.

As far as being able to purchase a home next year, I would gather to say yes but you should have both of your credit run by a reputable mortgage person now. This way you would find out what your credit score is and what you both qualify for right now. If you are not ready now, you would then know what you need to do to either improve your scores or perhaps you do not need to do anything but save more money.

You could possibly go FHA which means less money down at just 3.5%. They did however just change the guidelines for credit scores though. They now require a higher score to qualify.

That would be my advice for now. I would love to answer any other questions you may have. Feel free to contact me or email me.

Good luck

Renee Porsia
Associate Broker
(215) 669-0589 Direct
(215) 358-1100 Office Ask For Renee
http://www.reneeporsia.com Read my latest blog
1 vote Thank Flag Link Sun Feb 8, 2009
You need at least a score in the 700s to purchase a home today. The first thing that I would suggest that you do is get your credit score. Go to http://www.annualcreditreport.com You are entitled to get that free report once per year. It is approximately $7.00 for each score from each credit bureau. Do not make any large purchases. In addition to being a realtor, I also do credit restoration and other services. Credit restoration raises your fico score. This is done by having unverifable, inaccuracies, outdated information removed from your credit report. This is done by professionals , so they use all the loop holes. If you would like further information , please feel free to contact me.
0 votes Thank Flag Link Tue Apr 28, 2009
Jacqueline, You have received good advice from others. The rates are low and prices are low. If you qualify for a home now , this may be a good time. If you are looking in Stephanie Somers area you might want to go and talk to her .She has given you good advice and is active in the area. Even if you want to buy in June, you should sit down with a loan officer and see how much you qualify for and make sure there are no surprises. They will explain how you can improve your credit score etc.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Sun Feb 15, 2009
Hello Jacqueline, Please stay local with a Mtg Co. I've experienced nightmares with Mtg Co. call centers on line, that are promising you the world and then you can never get the same rep on the phone or.... The processor is in Califfornia and the Mngr is in Maryland and the underwriter is in Nebraska... and then they send you out a notery clerk to convey the home at the settlement table with little experience in the stumbles that can occur at the table. Hmmmmm.... I've experienced some nightmares with some of our previous Buyers......... Are you or your husband in the Medical field? There are programs for residents too!................. We have some Top Guns in the Myg industry that are straight shooters and very ethical. That goes a long way with Sheri and I.Also keep an ear out on the upcoming stimulas Pkg that will hopefully be passed including up to a 15k tax credit for qualified Buyers.
Feel free to reach us for a confidential discussion. Thanks John & Sheri http://www.HomeCatch.com
Web Reference: http://www.HomeCatch.com
0 votes Thank Flag Link Mon Feb 9, 2009
By the time we were looking to purchase, we would have about 5% of the home's value for a downpayment. The reason why I asked the original question is because my husband makes the majority of our money, but his credit history is short, and its just a small credit card. At our target price we would be more than able to handle the mortgage. I was concerned because with the economy in such a slump, and banks tightening up, I believed it to be much more difficult to retain financing.
0 votes Thank Flag Link Mon Feb 9, 2009

Just to add-there's quite a few things that can be done to improve your score. Disputing accurate and inaccurate information is part of it. --Noone can accurately foretell the future. What we do know is that now rates are historically low. in addition there's talks that the new stimulus plan may have a positive effect on rates that will make them even lower. There will be a small opportunity for folks to get on the bus. After that the doors will be closed sort to speak. Many forecast that we will be going into a period of inflation in the latter half of 2009 which will ultimately lead to higher interests rates. Higher rates means buying power decreases. As you navigate thru getting your credit up to speed be very careful. I come across so many people who have been literally ripped off and ruined by "credit repair" companies. I know of a good one who my business partners use. They report monthly fees as a positive tradeline as they are doing all the other things to improve score. But again be careful I say this not only for your benefit but I do know other consumers read these posts searching for useful info. Case in point I represent a buyer who last year I introduce new construction to. I forget when they went under contract but it had to be at least 8 months ago. These folks decided not to use the mortgage company the builder or myself have a business relationship with. They ended up with someone who claimed they were going to help improve their credit. The long and short is that they paid well over a $1000 in fees to what turned out to be a debt settlement company. Instead of helping these folks they actually ruined their credit. And now their $50k deposit is at risk of being lost.

What you should do is obtain a copy of your 3-n-1. From there speak with a mortgage professional who can tell you what you qualify for now and what things you should payoff or down to better your qualifications in the future.

Best Regards,

Jeremy S. Hill, Realtor Associate, Mortgage Consultant
Keller Williams Realty, Aurora Financial Group, Inc.
Office: 856.685.1651
Direct: 609.876.5817
Fax: 609.482.8235
Licensed PA, NJ
"Your Interest 1st Always"
0 votes Thank Flag Link Sun Feb 8, 2009
Difficult forecast the future however I owned a credit repair company for 10 years lectured to 1000's

HINT: Pay you credit cards on time, reduce the balance on any credit card by approx. less than 50%, NEVER close a credit card account will lower your scores.

Request creditor regarding late pay if would delete from credit report , company might never know unless requested. If company does delete credit score will increase.

Each day paying your bills timely scores do increase.

GREAT QUESTION especially planning for future purchase.

FYI ` dont allow any company pull your credit each time your credit are pulled lowers overall scores till you are ready to purchase .
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Feb 8, 2009
Hi, Jacqueline

Did someone tell you that you do not have enought credit? You actually seem like you have enough credit to purchase now. Regarding your credit scores...are they below 600? If not, you can easily get FHA financing. Today that is a great way to go, because if you are putting down less than 20%, the PMI (private mortgage insurance) will be much cheaper than with a conventional loan. Also, please remember that there is alternative credit: rent paid, cell phones, car insurance, utilities,etc. - anything you pay regularly. Everything can be used to make your case.

If you have concerns about your credit scores, I would love to put you in touch with a credit analyst who wil review them for you. Sometimes people think they need a 720 score - YOU DON'T. I do plenty of transactions with people in the very low 600 range. They are all happily buying homes.

It seems that you could benefit by working with someone who has mortgage experience, as well as Real Estate. If so, it would be my pleasure to help you find your home. Let's talk about it and see if I can help you, as I have helped so many others. Good Luck,

Carol Murray Cei
ReMax Millennium
0 votes Thank Flag Link Sun Feb 8, 2009
By the way Renee,i gave you a thumbs up for a good,sensible answer.
0 votes Thank Flag Link Sun Feb 8, 2009

You have had some great responses already ! Like Renee said, you may be able to qualify now. And if you do, why wait until next year ? I would set a goal to do it by the end of this year as with the new stimulus plan, you may qualify for up to a $15,000 TAX CREDIT ! But that is with a house purchase between now and the end of 2009.

So if you need a good mortgage pro to call now, let us know. I see you are in 19124. We have an office at Aramaingo and Tioga which is really close. Feel free to call the main office at 215-400-2600 or just stop by and ask for someon on The Somers Team !

For more info, please visit our site below and good luck !
0 votes Thank Flag Link Sun Feb 8, 2009
What do you have,or will you have in terms of a down payment? As first time homebuyers,you may be able to go FHA where your credit score will not be a factor. FHA requires a 3.5% down & interest rates will be somewhat higher than with a conventional. The 3.5% can be a gift(not a loan) from a family member. With conventional you would need at least 20% down,although the interest rate would be lower.
0 votes Thank Flag Link Sun Feb 8, 2009
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