Home Buying in Minneapolis>Question Details

sam, Home Buyer in Minneapolis, MN

I have a low credit score. I just got a good job and have recently caught up on all my debt. I wanna buy a house! advice or help?

Asked by sam, Minneapolis, MN Tue Sep 11, 2012

I am getting married next october, I want to buy by then

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Mary Jo Quay’s answer
Hi Sam,
Credit doesn't repair itself like a broken arm, it takes some active healing. The first thing you'd want to do is pull your own credit for free online. It isn't the whole picture, but gives you the basics. You need to know what is on there, and how to replace bad credit, or no credit, with good credit.

Next, don't apply for new credit cards, or to buy a car until you've been able to thoroughly review your credit. You can repair your own credit, and dispute bad credit on your report yourself. However, it is work, and intimidating unless you know how the credit bureaus work. I'd recommend that you check out http://www.unitedcreditconsultants.com, read everything you need to know about credit and credit repair. If you feel that you can do it yourself, go ahead. However, if you want guaranteed results, give Joe McGlynn a call and have him go through it with you. He's worked with a number of my clients to get them ready to buy their first home.

After you have a basic idea about what you need to repair, you can simultaneously start to build good credit. M &I Bank has a Credit Builder program. They call it a loan, but it is actually an auto savings program that you pay monthly to build credit. Pop into any M & I branch and ask about Credit Builder.

You could also start a secured credit card that works like a debit, but you return the amount spent to your account monthly. There are lots of choices,just be careful of high interest rates. You want to get into the habit of paying on time. Interest rates, and monthly fees are much higher with low credit, so you want to keep a low revolving balance, and never use more than 30% of your line of credit.

There's lots to know, but you have a solid 9 months to start building your new castle. Give a jingle if you need some help.
1 vote Thank Flag Link Tue Sep 11, 2012
There are a few pointers I could share with you by email that can boost your score further.

Hope to talk to you tomorrow,

Cody Anderson, MN Licensed Realtor

Metropolitan Home Team

Cell: 612-242-5752

Website: http://www.results.net/cody.anderson/Property/MN/55419/Minne…

Are we Facebook friends? https://www.facebook.com/cody.anderson.1293
0 votes Thank Flag Link Sun Oct 14, 2012
Hi, Sam!!!

When you say NEXT October, do you mean 2013?? If so you've got LOOOOOOOOTS of time to get this done.

OK, first step should be to talk to a great lender to get your mortgage work all done. Unfortunately, a low credit score is going to be a bit of a stumbling block, but luckily, you have some time on your side to get that score up before you apply. That will save you money in the long term.

Make sure you hook up with the right people, meaning lender, agent, insurance, inspectors, title, etc. This will be key to your success in getting the best deal possible for your first home!!!

Good luck~
0 votes Thank Flag Link Thu Oct 11, 2012
Let's get you qualified and see how "low" your score is. Then we can guide you to the resources you need i.e. getting your credit rebuilt if necessary, purchasing a house if it doesn't, or finding someone who will work with you on a contract for deed. I have resources for all scenarios above.

Vicki Schwartz
MN Real Estate Options
Broker/Owner/Short Sale Professional
Accredited Platinum Real Estate Professional
Phone: (952) 443-2056
Fax: (952) 236-6429
Cell: (612) 801-2355
Check out our website at http://www.mnrealestateoptions.com for great information on all aspects of real estate, for Buyers, Sellers and Investors
0 votes Thank Flag Link Mon Sep 24, 2012
Sam, feel free to call or contact us here anytime, United Credit Consultants is the largest credit service in the state. I am Joe McGlynn President of United Credit Consultants and Host of my own radio show Saturdays 8-9AM on Fox News Talk AM1130. Your situation needs to be handled first by an expert that can advise and guide you down the correct path. Our consultations are free and knowing what to do and what not to do is key in the improvement of your score and profile. call 952-314-1175 or http://www.unitedcreditconsultants.com
0 votes Thank Flag Link Tue Sep 18, 2012
"sucked in"?. Hmmmm Sam you wanna buy a house? Need some help? Hey did you know that is kinda my gig as a Realtor? Who woulda thought we can do more for a buyer than just open up doors and stand there twiddling our thumbs? Kinda shocking I know...

Some people think we are just sales people no matter how many times Realtors tell you it is a free service. I promise you I am not a sales person, and if you think so go find another realtor. I am proud to be called a Realtor, and if you want to buy a home then a Realtor is who you will need on your team. Whether you figure that out today, or next fall is up to you.
0 votes Thank Flag Link Thu Sep 13, 2012
Before you get sucked in by all the realtors Sam, try some of the local community resources. Greater Metropolitan Housing Corp http://(www.gmchhousing.org) or Community Land Trust, Anoka County Human Services has some programs. There are lots of non-profits that work specifically with people who don't quite qualify for a mortgage, but who would be good homeowners. They include lots of pre-purchase education and can link you with professionally rehabbed homes in great neighborhoods to help you rebuild your credit.
0 votes Thank Flag Link Wed Sep 12, 2012
Sucked in? Really?
Flag Thu Sep 13, 2012

You have a lot of great responses. Mary Jo's was by far the besta and I even gave her a thumbs up on that one.

You were not clear so we don't know your credit score. So what is "low"?

No matter what it is, you do need to work with a good real estate professional (You do not pay me one dollar anyway, just in case you didn't know that) and a good loan officer. Don't sit an flounder around like a fish out of water, because 3 years from now you may still be in the same position as you are today and I see this all the time. LIke MJ said, your credit does NOT heal itself. You have to be very strategic and tactical in fixing this.

Fortunately I have a program that I give my buyers access to that can take a 500 score to 700 in less than 12 months if they work it right. And I would be more than happy to get you referred into that program and can promise you only one thing: if you work the program and do everything you are told....you will be successful and be able to purchase a home.

There are still other ways to get you into a home WHILE you are working on the credit score, however. Again, I would be glad to explain those to you. Actually, I posted something on this in my blog on Trulia not long ago and I had two different Trulia users call me. I explained this option and both of them are now in a brand new home!! Both thought it would take years and it did not.

My contact info is on my website below. Have a great day, Sam!

0 votes Thank Flag Link Wed Sep 12, 2012
I will be very brief in my response. You have read many large routine responses. I have been in business for 21 years. My 75-80% work is buyer assistance. My first sale in 1991 involved selling my listing. The loan officer for the buyer was a LO of a pretty big lender. The lender changed terms of 5% down to 10%. Most buyers don't have money sitting around. The Closing was delayed for one week, but we closed with 5% down with another lender. I never did business with that lender again.

Now coming to your question, How low is your current score? is it 500s, 600s, Have you seen your credit report yourself? Did you review it and found the information correct? The first step would be to correct the wrong info. That will raise your score faster. Are their any collection items? Are there any Charge offs? Some unpaid/collection items can be negotiated 30-50% of total amount. Do that and pay off those obligations.

How long you have you been on the job? Minimum required is 6 months. What you did before your current job? School or some other job? I hope your current job is not through an Temp/ employment agency or as a contract basis?

Now coming back to the first question of choosing a Realtor? Get an Experienced Realtor. EXPERIENCE SAVES YOU MONEY AND PROTECTS YOU WITHOUT ANY ADDITIONAL COST TO YOU. Your realtor must have time to work with you for you. The finally, you should judge that person, is TRUSTWORTHY AND LIVES BY HIS WORDS. GOOD LUCK. YOU CAN CALL OR EMAIL ME..
0 votes Thank Flag Link Wed Sep 12, 2012
I don't know if I have much more to add then the rest of these Realtors except my own experiences, because First time buyers are one of my specialties.

I would say first thing you should do is get teamed up with a good loan officer. You have mentioned some credit challenges, so it makes sense to speak with a loan officer right now. You may not actually be qualified for a loan right now, because for example you need to get the credit scores up. Does that make sense?

I have gone through a lot of loan officers before finding one in particular that I like with first time buyers. EVERY loan officer will tell you they are good at rebuilding credit, but honestly that is just a bunch of BS. It is the #1 reason why I have fired a lot of loan officers, because they tell you the wrong information, then tell you to get back to them in 90 days, and you never hear a word from them during that time-frame.

Find one that can do "rapid re-score" in 30days and you should be fine. Besides the credit issue certainly finding a LO that is smart on down payment assistance is wise. However, I have found in my career that COMMUNICATION is the biggest difference between loan officers (and realtors too). There are just different needs when it comes to first time buyers, and you need someone on your team that will listen and be willing to spend extra time explaining things to you.

Us realtors work with loan officers every day, so we tend to have our preferred ones where there is a level of trust. I have 4 different lenders depending on the type of buyer I have, and I am sure other realtors do the same. You can either choose to get a referral from a realtor, or decide to interview some LO's yourself. I have found that most first time buyers choose to go through a realtor.

Financing really is 90% of the real estate transaction Sam. Looking at homes is the easy (and FUN part), but really I do everything for you and it will be great. The financing is key.

We are free to work with essentially, because the seller pays our commission. My advice is to check out our profiles on Trulia and maybe even contact a couple of us to see if we are a good match. I will tell you that MOST buyers choose to just look at homes online, and then when they are finally ready to buy is when they realize that they are behind the 8 ball on when they can actually move into a home.

Financing, budget, and the market all dictate timing that is sometimes out of our control. Will there be a lot of short sales at your budget in the marketplace? If so, they can take up to 6months to close! You would never initially think about looking at homes April with a October closing date yikes, but that is a mistake a lot of buyers make.

As a Realtor it is my job to be the all-in-one resource to a buyer regardless of when they plan on buying. You can either try to gain all this information yourself (Can we say google?), or you can get an expert on your team that will make life a lot easier and more enjoyable. The smart buyers are ones who get a realtor sooner rather than later on their team.

Good Luck Sam!

0 votes Thank Flag Link Wed Sep 12, 2012
Sam, a follow up to my previous response; Although it's true that many real estate agents will hold "buyer seminars" in an effort to develop relationships with buyers in hopes to work with them, there are other classes presented by none profit organizations such as the one I teach. Home Path is an excellent none promotional class designed to help buyers understand all the moving parts of a real estate transaction so you can ask the right questions and go into the process as an educated and informed buyer. An additional benefit to the Home Path class is that it can also help qualify you for programs that offer FRee grant money for buyers. Yes I said FREE. Feel free to ask me all about these programs as I am familiar with most: NSP/ISP neighborhoodLIFT, MHFA has several etc. you can often stack on grant on top of another and end up with uppward of $20,30k towards your down payment if you qualify.

There are single programs such as NSP that offer buyers $15,000 in down payment assistance alone.

The class I teach is strictly educational and none promotional. In fact I have no stake in the game because although I am a realtor in our local market I only work with sellers at this point in my career. The Home Path class will only teach you about the process and there are absolutely no promotional avenues to try and influence you to use any certain realtor.

Feel free to contact me or any of my fellow colleagues here on this forum. I am certain that any of us are more then willing to offer you a source of knowledge and resource.

Good luck with your new adventure !!
0 votes Thank Flag Link Wed Sep 12, 2012

I've got a fair amount of experience dealing with people whose credit isn't awesome. If you are getting married about a year from now, most likely, you have plenty of time to repair your credit and improve your credit score. So you do have time, but you might need help and you do need a personalized plan.

The fact that you posted a question here indicates that you might not know all the details regarding the entire home-buying process. To learn, you could attend classes, as was recommended, and those things are nice, but usually those are mostly a tool for agents to find buyers and develop a relationship with buyers that results in a commission for the agent.

As opposed to a group classroom setting, you could achieve the same thing by finding an agent who will listen to you, be attentive you your specific needs, and assist you on a "one-on-one" personal basis, and who will work hard for you, before, during and after the sale.

I can put you in touch with an experienced lender who will work with you to assess your current credit situation, who will work with you to get your scores to where they need to be (this is a 'science" all to itself), and who will then get you a mortgage loan....even if it takes a year or more. Additionally, they'll work closely with you, from start to finish, answering any questions that come up and providing guidance and advice throughout the entire process.

Give me a call, I'll be happy to help. I'll even attend a home-buying seminar with you if you think that's necessary...but I don't think it is. Mostly, you simply need help getting your credit score in order. So, in my opinion, you need someone (like a credit repair expert), to help you with that, more than you need a home-buyer class.

I'll be happy to help you from now until you buy your new home, which I believe can be done prior to your wedding. My services for buyers is free, and the credit-repair help is too.

Call me....my contact info is available by clicking on my ugly photo.

~mike 763-228-2967
0 votes Thank Flag Link Wed Sep 12, 2012
Sam, I recommend you don't rush into anything. Don't delay either.

Interview a couple of real estate agents. Find a good personality match and a good match with someone who you are confident will help you achieve your goals.

But even before you do that I recommend that you take a first-time homebuyer class. Typically they're free. I teach one called Home Path at a local nonprofit. They are typically not too long and there were worth their weight in gold.

If you're interested in knowing a class schedule I would be happy to get it to you. There are some classes coming up here this September and also in October

Shane Montoya - Keller Williams Realty
Helping people find and sell homes for 12 years.
0 votes Thank Flag Link Tue Sep 11, 2012
Hi Sam,

Knowledge is key when getting ready to purchase a home. You don't know what you don't know - so asking questions and seeking advice is a very wise thing to do.

I, along with my loan officer have assisted many "wanna be home-owners" without great credit achieve their real estate goals. We can assist you with getting on your own personal Path2Buy program for "free" which will give you an actual blueprint - a roadmap to get you from point A to point B.

Whether it takes three months or three years we will be there to guide you every step of the way until you are in a position to make your real estate dreams comes true. Every day matters, so please contact me so that we can get started -- sooner rather than later!

I look forward to hearing from you!

Paulette Carroll
Keller Williams Classic Realty
0 votes Thank Flag Link Tue Sep 11, 2012

You have plenty of time to get things in order.

Step #1: Find a real estate agent.
Step #2: Work with that agent to find a loan officer.
Step #3: Start saving as much money as possible!!

Cameron Piper
Coldwell Banker Burnet
licensed MN Real Estate Broker
Web Reference: http://www.CamPiper.com
0 votes Thank Flag Link Tue Sep 11, 2012
Sam, you need a good real estate representative - maybe even me! I would be able to help you assess what you need to do to bring up your credit score in the shortest possible time. Give me a call or send an email to me and let's get started! Liz, 612-986-4105
0 votes Thank Flag Link Tue Sep 11, 2012
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