I have steady income but not good credit 1st time trying to buy a home. Whats the best way to go?

Asked by angie, Lodi, CA Fri Aug 24, 2012

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, ,
Mon Aug 26, 2013
do some research there are some good programs out there for 1st time home buyers, some lenders will take low fico scores however your interest rate might not be as low as you might want it to be, it all depends on what you are looking for and making sure it fits your budget.

here is something to concider http://www.calhfa.ca.gov/homebuyer/
0 votes
, ,
Sat Aug 25, 2012
The state of the economy isn't helping. It's not enough that housing sales are down, property values are declining and mortgage lending is tougher than it's ever been. With the state of this economy, more and more folks face daily challenges due to job loss or reduced incomes. Their credit is suffering as a result. Yet, these same folks still harbor the dream of owning a home.

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140
0 votes
Robert Chome…, , San Diego, CA
Fri Aug 24, 2012
Oftentimes there are many quick and easy things you can do to quickly bump your credit score up. Give me a call and I can go through your report with you. I'm an expert and have looked at thousands of credit reports in my career.
0 votes
Randy Elliott, Agent, Lodi, CA
Fri Aug 24, 2012
Hello Angie,

Your best way to go is to speak with a very good local lender that will work closely with you to see just where you stand right now with your credit, and to fix something on your credit to make it better if needed.

I'd be happy to refer you to a great lender that will be very patient and work with you to make purchasing a home become a reality.

Randy
(209) 712-9473
0 votes
Annette Levi…, , New York, NY
Fri Aug 24, 2012
It will depend upon how bad your credit is. Speak with a mortgage officer to see if you qualify for the mortgage you want.
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