I'm looking to purchase a home with my fiancé. My credit is not very good, and he has no credit at all. What would be best way to go about it?

Asked by M_QUINTANA_4120, Albuquerque, NM Sun Apr 14, 2013

I would prefer that we both be on the lease. However, if it would make more sense financially, we would not be against one of us or the other being on the lease until we can get to a point where it is more beneficial for us to both be on it.

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Fri May 3, 2013
Good evening M_QUINTANA_4120,

First steps:

Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for. The Mortgage Banker can review your credit and give you a clear estimate of where you stand on your credit today.

If your credit is less then outstanding here are some steps to help fix your credit:

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

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0 votes
Ronald Romero, Home Buyer, Ranchos de Taos, NM
Thu May 2, 2013
Improve your credit, by reviewing your credit report-go to the FTC site, & get free annualcreditreport.com's address.and phone.

Check for outdated, erroneous, info-and write all 3 w/a letter of dispute-After corrected-Get a small personal loan-$300 pays out at Sun Loan 4 $48 pm for 7 payments-I think. You can use the money to get a secured Credit Card, if you or he can't qualify for an unsecured card-& Be sure to pay on time, and don't go over the limit-Capital One, I have found is the best secured card--But I found a better card, finally, and believe me when I say, I'm happy about it.

If you want to know what it is-then I'll let you know if your military or a veteran..
0 votes
Jane Knap, , Albuquerque, NM
Thu Apr 18, 2013
Your best bet is to talk to a Mortgage lender and have them assess your situation. I work with first time home buyers all the time with varying credit histories and income levels. Let me know if I can be of assistance. There are some contacts, useful links, and more information on my website.
0 votes
Stacy Wolf, Agent, Albuquerque, NM
Sun Apr 14, 2013
If we could find a home to purchase on a NMREC with owner financing on a long term, say 5, 7, or 10 years.. this would give you time to build up your credit, yet having the benefits of home ownership.
At least your monthly payment is going towards principle balance & equity, rather than in someone elses pocket. I'd be happy to help search your options! You can contact me, Stacy Wolf at 505-944-5997. Take Care
0 votes
Steve Quinta…, Agent, Albuquerque, NM
Sun Apr 14, 2013
We have the same last name; it makes sense for you and I to work together.

Your situation is best analyzed by a a mortgage loan expert. Call me and I will put you in touch with one. You can then discuss specifics about your current situation and what the future holds for you.
0 votes
Mei Cheng, Agent, Albuquerque, NM
Sun Apr 14, 2013
Unfortunately, bank these days are very tight in lending. I suggest you work with a credit repair company to move up the score and started saving for the downpayment. In the meantime, you can try to find properties with owner financing. In this case, you'll need decent downpayment and pay a higher interest rate for a short few years while you build up your credit.
0 votes
Nothing against Credit Repair companies-but they are expensive-just advise "in case of extreme credit problems", rather than in general-Some people have screwed up credit over minor issues-it's easy to view, and request a correction on your own.
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