Credit scores are odds, the higher the score the more likely the loan will be repaid as agreed. The lower the scores the less likely that is true and at some point that the borrower will even be ABLE to make payments as agreed. Interesting concept isnâ€™t it, betting against yourself? That is what is happening when borrowers use the lenderâ€™s minimum thresholds as their goal.
But there are steps you can take to improve your odds that are perfectly legal. Find a Realtor you trust and have them introduce you to the local loan officer they trust the most. Review your credit report with the LO. Take care of any past issues, working from the smallest/most frequently reporting, and then work your way up the list.
Make sure you have at least 3 open accounts paid as agreed.
Keep balances on credit cards below 25% of the limit. If the card has a $400 limit, never have a balance more than $100, not even for an hour or two. Keep it low but have some activity every month - the way you manage the money is what is being tracked by the credit score matrix. Good luck,
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Get started by visiting a mortgage representative to get pre-approved. They will be able to best advise you on what you will need to do...if anything.
The next step, regardless of being able to purchase now or after you have "mended some fences" is to begin collecting information about your target locations. This knowledge will make you better prepared to make a decision, when the time is right and you are in a serious hunt.
Anthony W Serber, PA
The Law Offices of Anthony W. Surber, PA concentrates its practice in the areas of residential and commercial real estate transactions (including short sales), title insurance, family law/divorces, commercial litigation, short sales, foreclosures, corporate law, personal injury and credit repair. Mr. Surber has several years of legal experience, has served as in-house counsel for a well respected Bay area corporation and practiced with a large Bay area law firm. We understand that customer service is our top priority.
The firm focuses on residential and commercial real estate transactions, with a heavy concetration on title insurance and closing services. We also practice in the following areas:
â€¢Short sales and other alternatives to foreclosure
â€¢Representation of buyers/sellers in residential and commercial real estate transactions
â€¢Real Estate Litigation
â€¢Pre-nuptial and post-nuptial agreements
The Law Offices of:
Anthony W. Surber, P.A.
4809 Ehrlich Road, Suite 102
Tampa, Florida 33624
(813) 908-6800 Telephone
(813) 908-6830 Facsimile
This is the first thing you should do to raise your credit score to be able to qualify for a loan and special First Time Buyer programs.
Tom Scaglione, ePRO, SFR, REALTOR
Future Home Realty, Inc.
First thing you should do is get copies of BOTH your credit reports.
You will want to make sure the information on them is correct.
Next, speak with a mortgage consultant. I suggest you speak with some one at the bank or credit union where you do your personal banking.
They can inform you if you can qualify for a loan now, and if not they can give you some advice on how to improve your scores, or reduce some debt to get yourself in a better position to be approved at a later date.
I wish you the very best!
Kawain Payne, Realtor
Prudential California Realty
All great advise so far.
Also I would highly recommend attending one of Dave Ramsey's Financial Peace University programs at a local church or community center. Wish I'd found out about this years ago!
Lastly there is the NACA program that may be able to help. You will have to jump through some hoops and don't let the zero down influence you because it would require a seller to give you 6% of the sale price. In this market with more buyers than sellers that is highly unlikely a Seller will donate 6% of the sale price to your closing costs. If you go with the NACA program make sure to select your Realtor FIRST and have your Realtor input your details. Otherwise you will have to work with a Realtor that is assigned to you. It's best to work with a Realtor you're comfortable with.
Hope this helps.
All the best,
The first thing you should do is to make an appointment with both a Realtor and Mortgage broker. Gather up your W-2 forms, last 2 years of tax returns and any other financial information that you may have. There is a BIG difference between being pre qualified and pre-approved.
If you are serious about buying get yourself pre-approved not pre qualified, in that way the lender would have gone through your credit history and all of your financial information and rendered a decision as to whether or not they are going to lend you the funds needed to buy a home.
Generally this meeting doesn't take long and you can get an appointment within a few days. I see that you are in Tampa feel free to call me if you need further guidance. We also have an in house mortgage broker that can answer all of your questions.