Looking to purchase an home the first time. I'm starting to establish my credit because i have filed bankruptcy. So far so good. Any advise?

Asked by Socorro14, Ozone Park, Queens, NY Mon Mar 5, 2012

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Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Mon Mar 5, 2012
There are several things too look out for. If you're simply looking to re-establish credit and not necessarily make a move at this time, you can always speak to a loan officer and go over your credit situation. As long as you have the right advice, you can set yourself up to be eligible for financing and purchase a home.

Feel free to contact me with any questions.

Javier Meneses
Sterling National Bank
1 vote
Curly Sue, , Texas
Wed Apr 24, 2013
My advice is to have PERFECT credit after your bankruptcy...no late pays! You should be eligible to purchase a home 3 years after discharge - if it was Chapter 7.
0 votes
, ,
Wed Apr 24, 2013
Good afternoon Socorro14,

First step:

Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for. The Mortgage Banker can review your credit and give you a clear estimate of where you stand on your credit today.

If your credit is less then outstanding here are some steps to help fix your credit:

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. http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

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.

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
Kevin, Both Buyer And Seller, Brooklyn, NY
Wed Dec 5, 2012
This is a huge umbrella question and you will get many many answers.

You are looking to purchase a home, is this now or in a few years? If now, you need a down payment and a loan if you don't have cash to buy the home free and clear. If you don't have the cash but you have a down payment you can try getting a loan from the bank but I noticed that you filed for bankruptcy in the past so your credit is shot and banks don't like that. It take about 7 years for a bankruptcy to be removed from your credit, you can work on building it up for 7 years while you get into a rent to own, lease to own, etc. type programs which most do not require credit checks. They do require that you have and can show a history of holding a job. These programs on provided by the owner of a home. The owner will usually own the property free and clear or is having trouble selling it in this current market.

Your scenario could look like this:

You find a home owner that is looking to sell their home via a rent to own or lease to own (other options available, contact me for more info) If the monthly lease or rent matches what you are paying for rent now (assuming you are renting) then go for it! Part of the rent or lease should be put aside by the owner to cover your future purchase of the house when you qualify for a bank loan. This allows you the time to get your credit up and the bankruptcy to be erased from you credit all the while building up the money you need for a down payment on the home in the future.

There are so many ways to buy and sell a home when you really get down to it, you just need to broaden your horizon and seek the right help to get it done.

all the best!
0 votes
Robbie Vaughn, Agent, Mineola, NY
Mon Mar 5, 2012
There is a lot to consider (i.e. bankruptcy chapter, date of discharge), but there are things you can to raise your score quickly (for free!). Hopefully you find the below link useful. Good Luck!
0 votes
John M May, Agent, Floral Park, NY
Mon Mar 5, 2012
Your on the right track. Now is the greatest time to purchase a home. Low rates and low prices and the banking indsutry is starting to lend again. Establish your creidt as you are doing and consult a loan officer from the bank of your choice on the different aspects of buying after a bankruptcy....Good luck.
0 votes
Nida Kabbaj, Agent, Plainview, NY
Mon Mar 5, 2012
I recommend you speak to a mortgage specialist that would give you advice on how to proceed.
0 votes
Gail Gladsto…, Agent, 11743, NY
Mon Mar 5, 2012
First thing to do is to get a pre-approval, not a pre-qual. If you are looking for advice regarding improving your credit, speak with your mortgage broker who should be the best person to direct you.

If you do not have a mortgage broker, would be happy to recommend; feel free to contact me.

0 votes
Anna M Brocco, Agent, Williston Park, NY
Mon Mar 5, 2012
Once the bankruptcy is discharged, and much will depend on the type of bankruptcy, the circumstances that led you to that route, credit, income, etc.; it can generally take two to four years in order to qualify for mortgage; therefore continue rebuilding your credit and save as much money as possible.
0 votes
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