Lou, Other/Just Looking in Austin County, TX

I am trying to buy my first home. I have paid off my dept. and my FICO score is 554 my loan officer said if my Sallie Mae loan accepts to change the

Asked by Lou, Austin County, TX Wed Oct 14, 2009

status to "AS AGREED" my credit score would jumpt to 595 I was also thinking if I dispute some of the things on my credit would that raise my credit ? and also if I will be able to purcharse my first home?

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Tommy Burris, Mortgage Broker Or Lender, Baton Rouge, LA
Thu Oct 15, 2009
If you paid off collections, you may not have done your score any good. As they will now read more recent to FICO.
Here is a fre e-book about credit scores.
Good luck!!
1 vote
Randy Stevens, , Austin, TX
Tue Oct 27, 2009

A cool place to go to for testing different scenarios about your credit and how it will affect your score: http://www.creditkarma.com. You can enter certain scenarios like getting a new loan or credit card, etc. and see what happens to your score. DISCLAIMER: I am in no way affiliated with creditkarma.com and do not know how they do their calculations on credit scores. I just thought it is an easy way to get a general idea about how you can go about improving your score.

As far as buying a home, I currently have owner financed homes in Austin and surrounding areas that you could still qualify for if you have a reasonable down payment and can meet your monthly payments by proving your monthly income. There is NO BANK QUALIFYING with our program and you get 100% ownership of the home from day one. Best of all, you will still qualify for the $8000 tax credit if we find you a home NOW! Contact me today and visit my website to see some of the homes we have available.
0 votes
Tim Hunke, , 78746
Thu Oct 15, 2009
I totally agree with Tom on the payment of debts. Did you do this before you talked with your loan officer?
I try to counsel with my borrowers before we set up a plan to improve their credit. My concern is that FHA/VA are raising their loan requirements which will further hurt you efforts. The purchase of a home thru USDA may be your best bet.
0 votes
Kathy Fisher, Agent, Decatur, TX
Thu Oct 15, 2009
Also Lou, Check with your local USDA office. They have ALL KINDS of loan programs and some are not generated on your credit score along. Each program is different. If you are already working with a mortgage professional, ask them to check on the USDA office.
0 votes
Steve Fergus…, , Austin, TX
Thu Oct 15, 2009

You are moving in the right direction. Josh, who was the first one to answer this thread, has some good insight on what can and cannot be done. The real question here is how soon do you want to buy? If you are interested in buying ASAP then an owner finance option may work for you. It is also very possible that you may qualify for a home loan now but I would not know for sure without looking at your credit report. My company works with all kinds of credit situations and we have the programs and the professionals to help you reach your home buying goal in the shortest amount of time possible. There are a lot of great professionals on this board and I know that you will be able to find someone to help you. Give me a call or at least check my site for further information regarding credit. Thank you and I hope this was helpful.

Steve Ferguson
0 votes
Barbara Guad…, , Austin, TX
Wed Oct 14, 2009
Your lender should be able to tell you exactly what and how you can do to raise your score and how long it will take for your score to jump up. It is also a good idea to get a second opinion from another lender. The score wont change but interest rate and opinion on how and what to pay/dispute may. I have a great lender that works well with these types of scenarios. He has worked with a few buyers from 3months to a year. Give him a call and he can better answer your lender questions. Your heading in the right direction though, and congrats on your first home!!! Kim Ghanem, 512-783-8609 cell.

Please feel free to call me if you have any further questions.

Barbara Guadiana
0 votes
Carol Kerr,…, , Austin, TX
Wed Oct 14, 2009
Hi Lou,

Congrats on paying off your debt! That's a huge accomplishement! These days you generally need to have a credit score of at least 620 to qualify for a good loan. Your loan officer should be able to go through your credit report with you and identify whether there are any things that you can attempt to have change and therefore improve your score. He/she should also help you identify other things you can do to build your credit score.

The other thing that will really help is having at least 3.5% to put down on your new home.

One possible way around some of these hurdles is if you qualify for a VA mortgage.

Buying your first home is very exciting! Sometimes it will feel like there are just too many things to worry about / deal with, but trust me, it will all be worth it in the end. Give me a call or email if there is anything I can do to help you through the process. I work with lots of first time buyers and have worked through all sorts of challenges with them... It always come together with a plan!

Good luck!
Web Reference:  http://CARARealtyGroup.com
0 votes
Josh Thomas, , Austin, TX
Wed Oct 14, 2009
Hi Lou,
There are a few options you have, but you will need to speak with someone more in depth about your situation.

1. As for your credit score of 554, probably not. But 595, there is a possibility to get you approved, depending on some other factors.

2. There are options for buying a home that do not involve credit checks at all. Again, depending on a few other factors, this could be a viable and legitimate option for purchasing a home.

If you want to find out about your credit, contact Steve Ferguson of Southwest Funding. He can give you some information about your qualifications as well as recommend a credit repair company that won't rip you off. As for no-qual financing, I can help you there.

So to answer your two questions, will disputing things on your credit raise your score? Maybe, but only if you do it right. And can you purchase your first home? Most likely, but you will need a little bit of help from someone who can review your credit, or someone experienced in non-qualifying financing.

I've done several of these types of transactions in the last month, and can give you a heads up about what to expect if you want to chat about it.

Good luck.
0 votes
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