Home Buying in Chandler>Question Details

Nicole Jackm…, Home Buyer in Tacoma, WA

How to be ready for a home purchase with a credit score of 577?

Asked by Nicole Jackman, Tacoma, WA Sun Dec 9, 2012

I'm only 23 and my credit score is real low, I've paid everything off almost and my dept is what I'm financed on right now like my car. What should I do?

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Answers

6
There are lots of lenders that will work with you to get your score up. Spend the next year saving money for your downpayment, getting your score up and pay ALL your bills on time. The lender can help you clean off any issues on your credit report too. All the best!
0 votes Thank Flag Link Tue Dec 11, 2012
Lucky,

All the feedback you have received seems to be generally true. Realistically, the lower target score you should reach for is a 640. Although there are programs out there to possibly get you in a home with a lower score, you will have to put much more "skin-in-the-game" (money down).

To get to that 640, I reccommend contacting a high-quality lender that also manages or contains a credit services department. I have a great lender who can help you manage your debt-to-income goals, help you increase your "managed debt" footprint, and help you with raising your score, all at no cost from them for this service. Their specialty is helping home "wanters" become home buyers!

Contact me if you'd like the name and contact info of a team of great people that I work with that specialize in helping individuals just like yourself.

Thomas

"Some people spend an entire lifetime wondering if they've made a difference.
The Marines don't have that problem."
- President Ronald Reagan.

Thomas S Moore III, BSRE, CDPE, GRI, PLC
Direct: 480.420.7248
Fax: 855.944.6637
thomas@mooredreamhomes4u.com
0 votes Thank Flag Link Sun Dec 9, 2012
Hi Luckyme,

First thing, don't feel bad about your score. There are a lot of people whose credit has been dinged, bruised and mangled. There are programs that can be obtained with a 580. You will want to talk to a lender that has several options for you. The big banks lend their money mostly and are limited to what they will do. The mortgage brokers have some flexibility because they can use other banks monies. The scores usually change monthly so depending on when you received this score, you may be surprised what it is. My lender has stated that some of the reports on the internet are different from an actual mortgage report. The scores for auto lending are different from credit cards and mortgages. I have had some mortgages declined because they don't have enough credit so be aware that if the accounts are closed, then you may not have enough trade lines. That will entail getting more credit and seasoning them for some time.
The lending process can be challenging but think how many people out there own homes. If you can stick with the guidance from a good lender, you will be enjoying the benefits of your own home soon. You must find a good realtor (me) to help navigate the negotiations and find you your best deal. I have been in lending so I am very familiar with the loan process and I have a lender who has a program that will give you money to help offset the costs of buying a home. I enjoy helping the buyer through the process. Give me a call, text or email and I can go over the details. Let us help set you up with someone that can get a plan going for you.

Thanks for posting your question,

Tina Sanchez
ProSmart Realty
Cell/text: 480-620-2374
Email: tinasellsazhomes@gmail.com
Web: http://www.prosmartrealty.com
0 votes Thank Flag Link Sun Dec 9, 2012
As realtors, our field if expertise lies within real estate. Where to buy, what's hot or not, etc. Your question needs to be asked to a financial adviser, preferably one within a mortgage company since your ultimate goal is to purchase a home. The reality here is, it may take some time to boost your score to a level acceptable for mortgage approval. Any realtor should be able to recommend a reputable lender who can help you get started.

I know a lender who has been in the business for more than 23 years. He's seen it all, send me a note and I'll give you his information.
0 votes Thank Flag Link Sun Dec 9, 2012
Start you home buying plan with a visit to a quality Lender to discuss mortgage options. I'm happy to make recommendations of Lender's who will give you good advice as well as provide reasonable mortgage loan terms and conditions when you are ready to buy. Now is also the time for you to begin making a list of what you need and what you would like to find in your first home.
0 votes Thank Flag Link Sun Dec 9, 2012
Lucky

We have programs in place to evaluate your current credit, strategies to improve and then monthly follow up programs.

No charge for the program!
0 votes Thank Flag Link Sun Dec 9, 2012
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