Financing in 21009>Question Details

Craig Thornt…, Home Buyer in 21009

i have bad credit and i want to buy a house. what do i need to do?

Asked by Craig Thornton, 21009 Fri Apr 4, 2008

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Most of these answers have some good advice. You should contact a reputable lender that has the patience and time to take with you to go over your credit report and talk with you about things that you can do to improve your credit score. You need someone that will work with you and work in your best interest.

You should also sit down, and go over your personal finances. Put down your earnings that you bring home, versus your bills that must be paid each month. Make sure that you include everything you need to live. Not what you want, but what you actually need. Form a budget that you can live within and try to stick to it and make sure that you include some savings. If you are living check to check and cannot save any money, you definintely need to think about where you are currently spending your money and how you can cut back to save. Having money in savings will help you keep your credit score up in the future because it will allow you to pay your bills even if you are out of work or have some kind of a problem. It also viewed as a very important factor in being qualified to buy a home. Lenders want to see that you are able to save money in case of emergencies so that they know you will be prepared to always pay your mortgage.

I would be happy to sit down with you and help you form a budget. I live in Harford County and it would be no problem to meet with you and set you up with a local reputable lender that will help you as well. If you get prepared financially before you buy a home, your experience will be much brighter. Contact me anytime!
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0 votes Thank Flag Link Tue Aug 12, 2008
Since this has been posted the idea of someone with bad credit getting a descent loan have gone downhill.You should stay a renter because Maryland was behind the real estate bubble and prices are finally starting to fall and will fall for a year or two.You should have Save up some money and put your bad credit another year or two behind you.
0 votes Thank Flag Link Tue Aug 12, 2008
Depending on your credit challenges, you may still be able to get approved with FHA. I would talk to a lender about your options .
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0 votes Thank Flag Link Fri Apr 4, 2008
Love some of these answers... 35% down?! Who has 35% down that has bed credit?
Contact a good loan officer. Ask them where you are - and how to get where you want to be. Any good reputable loan officer will be able to tell you the steps needed to fix your credit.
0 votes Thank Flag Link Fri Apr 4, 2008
Hi Craig,

If you are credit "challenged" and still want to get into a home, then you should look for a Rent to Own or Lease with the Option to Purchase house. Many investors, like myself, do these kind of real estate transactions.

Many times you can get rent credits towards your down payment as well while you start the credit improving process.

Also, after you have made your payments on time for 12 months, then 12 months and one day is considered a refinance, not a purchase making it a little easier to qualify for that all elusive loan these days.

Many investors will work with you on time as long as you are working on improving your credit.

If you need a great referral for your area, I know of a few up that way. Let me know.

I hope this helps you.
0 votes Thank Flag Link Fri Apr 4, 2008
I can recommend someone to you who works with clients in our office. She helps people improve their credit score. She works with all of the three major Creditors. I can't really explain it. But her name is Felicia Douglas with EastWest Credit Management. Her telephone number is 240-447-4292 or 301-560-6789. Please tell her that I referred you to her. Good luck to you.
0 votes Thank Flag Link Fri Apr 4, 2008
Put together a core team of professionals to guide you through the process(s). Your mortgage professional and REALTOR can make or break the deal for you. Once you select your mortgage professional meet with them in person and complete the "full" loan application. From there you guys can come up with a game plan of how to clean up our credit file. Sometimes you'll need to write explanation letters, or perhaps contact creditors, etc. Once you've cleared or explained the challenges on your credit reports have the loan officer re-run your credit and try to do a rapid re-score. After that have them sumbit the info to the underwriters for pre-approval. Once you get your scores up and receive a pre-approval - then you can start seriously looking at homes.
0 votes Thank Flag Link Fri Apr 4, 2008
If you can verify your income, if not you have to put down at least 35% down.
if you need my help you can contact me at 516-739-2243
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0 votes Thank Flag Link Fri Apr 4, 2008
Dear Craig,

I am a mortgage consultant and, as Megan stated in her reply to you, the first thing that I do for my clients is run a credit report (from all 3 credit agencies) along with a credit analyzer. The credit report, plus the credit analyzer allow me assess my clients credit report and also give them specific direction as to what needs to be done in order to fix their credit. This is a VERY important step and should be your 1'st.

I would also recommend to get pre-approved vs. pre-qualified given today's volatility in the lending industry. Getting pre-approved is a more detailed process, which usually take about 2-3 business days. However, it will provide you with a letter from the lender stating that they will lend you a certain amount of money and will make you a much stronger candidate in the eyes of the seller.

Please feel free to e-mail me with any questions.
0 votes Thank Flag Link Fri Apr 4, 2008
Your first step should be contacting a loan officer to get a pre approval. They will let you know if you qualify for a loan or not. If you don't they can tell you what you need to do. It is impossible for any of us to tell you what to do because we don't know your score or what is making it bad. If you want som loan officers for the Abingdon area shoot me an email and I can give you some names and numbers. A pre approval is free.
0 votes Thank Flag Link Fri Apr 4, 2008
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