First time home buyer

Asked by Dmass1977, Martinez, CA Tue Mar 19, 2013

Hi. i have a poor credit score of 594 and earn just under $100,000 a yr. i know very little about buying a home in the Martinez, Ca area, but want to know if it is even possible with those numbers. I would have 20-30k for down payment. Thank you

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Bob Georgiou, Agent, Danville, CA
Thu Mar 21, 2013
The only thing that is missing from the information below is how did your credit get so bad? Short Sale? Not that it needs to be aired here a short sale, I would simply add that a forclosure or bankruptcy or short sale will keep you out of the housing market for 3-5 years and sometimes 7...
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Robert Chome…, , San Diego, CA
Wed Mar 20, 2013
My best advice is to talk to an experienced loan officer to review your credit with you. Many times there are small changes you can make that can bump your credit. Although you can get a FHA loan below 620 mid credit, I highly recommend working to bump your score up to 620. I would be happy to assist.
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Steven Ornel…, Agent, Fremont, CA
Wed Mar 20, 2013
Hi Dmass,

Here are my “Top 4” bits of advice for new home buyers looking to assure successful outcome:

1) Find a professional Realtor® to work with to protect you interests.
Simply put, your Realtor® will be able to answer initial key questions and guide you through the process. One of the key advantages of involving your Realtor® is access to seasoned Mortgage Broker/Bankers with a track record of getting the job done. You can check to make sure an Agent is a Realtor® by going here:…

The primary distinction of any Realtor® is they have a real estate license by taking required classes and passing a written test - but most importantly - they must also subscribe to the Code of Ethics published by the National Association of Realtors® (NAR). Typically, Realtors® are also members of state and local association of Realtors® and further agree to abide by the bylaws, rules and regulations of those associations.
The full Code of Ethics can be found at

2) Obtain a "True Pre-Approval" (your most important step in my opinion).
You MAY need to improve your credit score, increase cash reserves, etc. before buying; however, at least you will have a roadmap to eventually purchasing if this is the case. Furthermore, this step can save you from wasting money on a purchase that does not close escrow!
"Retail Banks vs. Mortgage Broker/Bankers"

3) Make sure you obtain access to your local AND regional Realtor® MLS data via an automated search your Realtor® should most certainly create for you; here's why:
MLS Data Accuracy – Where to search if you’re “without Realtor®”

4) Avoid Dual Agency!
There are specific duties an Agent must provide. When one individual represents both Buyer and Seller conflict between two of the most important duties occur.
“Dual Agency: Why should I NOT use the listing Agent to buy a house?”

The majority of the Bay Area housing market is experiencing a brutally strong Seller's market that has little time for haggling over price which I do not see significantly waning until Q3 or Q4 of 2013 after more Sellers are influenced to list their property (adding more supply) along with a slow increase in mortgage rates over the same time frame (reducing demand).

Take your first step today so you can position yourself to act when your opportunity presents itself!

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Gregorio Den…, , San Diego, CA
Tue Mar 19, 2013
The 594 credit score does not disqualify you from financing. You could get FHA financing with 3.5% down with that score but please note that the score alone does not qualify you. Often the reasons for the low score are what disqualify you so you would have to apply to find out. Don't let people talk you out of applying by giving you incorrect information.
Web Reference:  http://WeFixRates.Com
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Thierry Abel, Mortgage Broker Or Lender, Corte Madera, CA
Tue Mar 19, 2013

What you first have to do is work on your credit. see if there are ways to increase your scores.

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Pacita Dimac…, Agent, Oakland, CA
Tue Mar 19, 2013
The first thing you should do is speak with a mortgage lender who can/will give you some guidelines, as well as guidance on how to improve your credit score. Certain scores limit borrowers to certain types of loans. So if you want to have as many choices as possible, your goal may be to raise that scor.

If you don't have a lender, align yourself with a realtor who can give you some recommendations for lenders who will work with you.

Down payment isn't all you're going to need -- you'll also need funds to cover the closing costs. Both your realtor and your lender can help prepare you as to how much you'll need depending on the type of loan you can get, and how much you can afford.

If you need some help, let me know.

Good luck
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Justin Linds…, Agent, Miramar Beach, FL
Tue Mar 19, 2013
Well first, what are your other scores are. Your median score will be what really matters. Lenders also will view your credit score through the eyes of FICO, which can have significant impact on your results.

Considering the amount that you are going to put down, call some lenders and see what they can offer you. Believe it or now some programs do exist with scores in that range.
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