I would love to help and walk you through the process. So that when March comes you are able to purchase a property. There are a number of questions I would like to ask you.
Feel free to give me a call at 910-239-1448.
Century21 Sweyer & Associates
We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.
It is unlikely you could be approved for mortgage financing with that credit score at this time.
Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.
First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.
Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.
I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
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.
The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.
The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.
*If you thought my answer was helpful, please give me a â€œThumbs Upâ€ or â€œBest Answer.â€ Thanks!
If you are approved for a mortgage loan, your current credit score is going to cost you far more right now in a mortgage than it would if you had a good credit score regarding the same mortgage. Your potential loan fees and closing costs will take a good chunk of the $10K...there goes the full down payment. If you finance the fees and are allowed to incorporate those in your mortgage...there goes any equity the house may have. Considering your potential high interest rate...you may have to own the house for 20-25 years to break even. The higher your interest rate the less you will pay toward actual principal. A massive chunk of your mortgage payment will be interest.
In my opinion, you are way better off just renting for awhile longer and work on improving your score. Given the two scenarios...it's probably way cheaper for you to rent.