I am a first time buyer with very little for a down payment and not very good credit, where should I begin?

Asked by kna_aj, Belding, MI Fri Sep 21, 2012

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Laurie Palmer, Agent, Ionia, MI
Mon Sep 24, 2012
You should start by talking to a lender. I have a great lender I work with out of Greenville. I would be happy to pass along her info if you are interested.
0 votes
Jennifer Fiv…, Agent, Red Hook, NY
Sat Sep 22, 2012
You should first meet with a lender to see if you would qualify for a loan especially since you hinted your credit is not that good. There are mortgage product aimed at first time home buyers, FHA accepts a low down payment. You should also check to see what first time buyer programs are offered in your State.
0 votes
Dan Tabit, Agent, Issaquah, WA
Fri Sep 21, 2012
Kna_aj,
Your credit. Credit requirements are tougher now than before the housing bubble burst. In 2005 I could get almost anyone a loan with 0 down, now there are few programs with low downpayment requirements and they do have minimum credit standards.
To repair your credit start by paying your bills on time or early. Set aside money every month for savings, so you don't find yourself needing to use credit. Pay off all your credit accounts starting with the smallest one first, then the next smallest adding additional amounts as you go until you are debt free. Do not close any accounts or pay off old collections yet. Closing accounts reduces your credit score, hurting your goal. Paying off old collections, before your lender requests it, can also reduce your scores. When you have scores in the low to mid 600 range, apply for a mortgage loan. Approval may be conditioned upon paying off the collections then, but you'll already have your approval in hand.
These are just a few ways of improving your credit, search out more. If someone promises something too good to be true in credit repair, be very skeptical. There are frauds out there. Best of luck.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Sep 21, 2012
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, therefore begin by visiting with any licensed loan officer to determine qualification; also choose an agent to work with....
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