Home Buying in Greenville>Question Details

Gabriel Ortiz, Other/Just Looking in Greer, SC

Can I qualify for a mortgage loan with a 570 credit score. first time buyer.

Asked by Gabriel Ortiz, Greer, SC Wed Apr 17, 2013

We've been trying to rent a house in the Greer area for almost a year now, but as soon as one becomes available within our price range, it's gone in a second.

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7
I believe the minimum credit score lenders will accept is a 580, so you're close! Speak to a mortgage lender that knows about credit, they can have you pay off a couple things and do a rapid rescore to increase your score and hopefully get you qualified. The Lenders Network can help you find lenders that work with low scores. Good Luck!
4 votes Thank Flag Link Sun May 4, 2014
Good evening Gabriel,

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.
http://www.consumer-action.org/

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

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3 votes Thank Flag Link Tue May 7, 2013
Thank you this was very helpful!
Flag Wed Feb 5, 2014
Qualifying with 570 will be difficult. You do need to talk to a mortgage broker. They do so much more than just loan money. They can help you straighten out your credit and correct any possible mistakes. They can let you know what you need to do to get to the point where you can buy a home and an approximate time line for that goal. They are advisers for securing a home, not just lenders.

I've worked with several in the area that do a great job and really do follow up with folks who are working toward a goal. Feel free to call me for some names.

Good luck!

Beth
884-6018
2 votes Thank Flag Link Wed Apr 17, 2013
That's not a great credit score and you will likely be turned down by a lot of property managers/owners. What I'm suggesting is that you go to a company that helps people rent even with bad credit. I suggest EZ Lease Rentals. Such companies will help you get the home of your choice for a reasonable price and they only ask for minimal requirements. What do you think? Hope this helps!
1 vote Thank Flag Link Mon May 13, 2013
You will need to speak to a lender to get an answer because there are several factors that can determine whether or not you can. I have a lender that I use regularly that offers free credit counseling to help you get in a position to buy quickly. Call me and I can pass you their information. Thanks! Sandy Clayton, Keller Williams Realty. My cell is 864-205-6744
1 vote Thank Flag Link Wed Apr 17, 2013
For a personalized answer visit with any licensed loan officer, there are other factors besides credit that determine mortgage qualification; however most lenders prefer 640. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
1 vote Thank Flag Link Wed Apr 17, 2013
My scores were actually worse than that. My co-worker used http://www.financialplannersllc.com to fix her credit. She just wanted to have better credit but I ended up using them to raise my scores so I could buy my home. There's a lot of scams out there but they were honest and did everything they said they'd do.
0 votes Thank Flag Link Tue Jul 23, 2013
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