Ann30, Home Buyer in Houston, TX

Can I get home loan with a credit score of 572? Or can me and my boyfriend do it together his score is 569?

Asked by Ann30, Houston, TX Mon Feb 20, 2012

Is there any other way if we can't? We're looking at house in the price range of 60,000 to 120,000?

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14
Don Groff, Agent, Austin, TX
Mon Feb 20, 2012
Hi Ann,

Don't bother with "new programs" Work on your credit scores! Your first step is to find a lender who will work with you. Have them pull your credit and review. Next is to look at what is causing your scores to be so low. Is it caused by problems that occurred in the past or is it something that is still hurting you.

Once you have figured that out you need to establish some new reporting credit. That is done by getting some installment loans and secured credit cards. Save up enough so you can deposit a CD as collateral with a bank such as Wells Fargo. Then take out a loan and only pay the difference between the CD interest rate and the loan interest rate. Do the same with a credit card with the same bank... pay on them each month and never ever, ever , ever charge more than 40% of your available credit or you will possibly hurt your scores or cause them not to go up as much as they could.

For example: Let's say you deposit $500 with Wells Fargo to get a secured credit card that reports to the credit bureaus. Never, ever, ever, ever charge over $200... did I get enough ever's in there? Seriously I did that because it is vital in getting your scores up as high as possible in the shortest amount of time.

If you do this and open 3 lines of credit in a year your will have much better credit scores and have 3 trade lines that are reporting to your benefit. Don't try to buy a house today. Work on the details so you can buy a house in the near future. It will be here sooner than you think. Just take the time to find a lender who will work with you and is experienced in these matters.

If you have any questions on this please feel free to contact me directly. Best of luck to you and your boyfriend getting your credit back on track!

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o.512.669.5599 m.512.633.4157
listings@dongroff.com
1 vote
John Walin, Agent, Libertyville, IL
Fri Feb 24, 2012
Ann
the risk adjusted premium for a marginally low score is pretty high. So when you hear 4% 30 year fixed that is for perfect credit, stable job history, verifiable income and low debt to equity with 20% down. Rent for a year and improve your scores.
0 votes
Parker Compa…, Agent, Houston, TX
Fri Feb 24, 2012
You may, but you need to first talk with a lender. See what they say. Ask them to pre-approve you and get all their required documents in. Your credit score may be higher than what you see and qualifying for a mortgage is different than a credit card or even a car. There are also different financing options available such as FHA and other affordable housing programs. Everyone deserves a place to call home. Buying is more cost efficient than renting, but you're going to need cash to pay for downpayments, closing costs and other services like inspections (if you choose to use them). Call me and I can get you in the right direction. Chin up, you don't know what the future holds.

~ Kristen
0 votes
Tamika Goree, Agent, Arlingon, TX
Tue Feb 21, 2012
Good Evening Ann,

I would recommend you and your boyfriend get your scores up. I suggest you and him get a secured credit card. Secured credit cards do have a higher interest rate but it's specifically for people who have low credit scores to help re-establish their credit.

If you have any questions or assistance, feel free to contact me.

Make it a Blessed Day!

Tamika A. Goree
Direct: 972.697.1178
Email: tamika.goree@live.com
0 votes
Annette Levi…, , New York, NY
Tue Feb 21, 2012
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
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue Feb 21, 2012
You probably shouldn’t borrow money even if you find someone that will agree to lend it. The main reason there are so many foreclosures is because people that didn’t qualify were approved for financing. “Experts” might advise you to repair your credit, they mean well but read the info I linked below, I hope it keeps you from getting hurt, good luck,
0 votes
Marco Gomez &…, Agent, Jackson Heights, NY
Tue Feb 21, 2012
Generally lenders require a minimum of 620. You may want to fix your credit before you purchase.

Regards,
Marco Gomez
NY State Licensed Associate Broker
Keller Williams Landmark II
917-734-2012
marco.gomez@gmail.com
0 votes
Eric Domingu…, , Houston, TX
Mon Feb 20, 2012
Ann,
There are simple steps you can take to improve your credit in months, not years. The are easy, and generally free! Unfortunately there is so many things that effect scores, I.e. balance vs. credit lines, late pays, slow pays, collections, judgements, amount of accounts, etc. You may or may not know what is effecting your score, but I don't. If you would like to call me, I can tell you not only how to find out what's effecting you, but hopefully teach you the steps to fix it, cheaply and easily. All it takes is a phone call to pick my brain! No strings, just knowledge!
Please, without proper guidance it could cost you thousands, and still not help your situation, when you could have done it for free!

Good luck

Eric Domingues
832-605-0001
0 votes
Amanda Nicod…, Agent, Spring, TX
Mon Feb 20, 2012
The minimum credit score to purchase a home is 620, so really you're not that far away. A quick way to improve your credit score is by paying your monthly payment (credit card, installment, etc) at least 2 days before the due date. In less than a year, you should have improved your credit score and be on your way to becoming a homeowner! Also start setting aside money for your downpayment, which is at least 3.5% of the sales price.

When you're ready to buy, make sure you use the services of a buyer's agent to help you through the buying process. Remember there's no charge to use the real estate services of a professional buyer's agent.
Web Reference:  http://www.amandahomes.com
0 votes
Gary Lee, Agent, Katy, TX
Mon Feb 20, 2012
I am not a Finacial advisor but I would suggest you talk to a few lenders and get your self prepared for when you are ready to move forward. Unless you have found a home that you need to buy today,I would suggest you wait and do it right, Good credit Score= Great Rate! Good Luck
0 votes
Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Mon Feb 20, 2012
Ann

There are lenders on here touting 560 credit scores are ok on deals.
These deals are harder to get. Have higher interest rates and bigger down payment.

Work on the credit. Here is a free resource to get you started. => http://dallasloanguy.com/wp-content/uploads/2011/11/about_cr…
Let me know if you have any questions about the book.


Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Feb 20, 2012
You need to repair your credit then submit a loan application to a mortgage broker. Most lender require 625 + credit score


Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
972-699-9111
http://www.lynn911.com
0 votes
Neal Jackman, , Cottonwood Heights, UT
Mon Feb 20, 2012
There are programs, but they usually require a higher down payment. You might find there are old items or reports that are not yours that are keeping you from qualifying. The company I work with does not have a long term contract and a minimal sign up fee. Just getting rid of the old baggage could do the trick for you.
0 votes
Neal Jackman, , Cottonwood Heights, UT
Mon Feb 20, 2012
You might be surprised how easy it is, with a little effort, to raise your scores up to a 600+ level. We have affiliates we work with that can clean up your credit history in a very short period of time. I recently had a client that went from a low 500 score to just over 600 in about two months. Feel free to contact me and I can get you referred to someone who can help.
Neal.
0 votes
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