Is it possible for us to get a mortgage soon?

Asked by Desiree, Rome, GA Sat Aug 23, 2014

My husband and I both have a credit score around 590-600. We both have very stable work history and our gross salary is $72,000. We are very eager to buy rather than waste our money on a rental. Is it possible for us to get a mortgage within a year or even now (and where should we look)? We are currently paying $900 a month towards debt repayment so our credit scores can improve. We have medical debt, student loan, and some credit card (nothing has gone to collections in the past three years though).

Help the community by answering this question:

+ web reference
Web reference:

Answers

8
Larry Bernst…, , Chicago, IL
Sun Sep 14, 2014
I am a locally based and Illinois licensed loan originator. I have over 10yrs of experience. My company works with multiple lending partners that offer financing with credit scores down to 580. We also work with other investors, as a broker of theirs, that offer financing down to 550 with 10% down payment or 0% for those are currently in or discharged from the US military.

Professionally speaking, mortgages are underwritten the same, regardless of credit score. Income and assets get verified. Negative information on the credit report needs to be explained and the customer(s) must show they can afford the new mortgage payment.

Personally speaking, a majority of loan officers don't want this type of business because it MAY require more effort and MAY not be as easy or quick to close. I enjoy helping people achieve homeownership and it is how I provide for my family.

I would be happy to discuss your options in detail. Feel free to contact me today (Sun 9/14) or at your convenience by phone (847-815-8229) or email (lbernstein1130@gmail.com)

Thank you. Larry Bernstein. NMLS# 280597.
0 votes
Randy Tanner…, Agent, Boynton Beach, FL
Wed Sep 10, 2014
Please contact a lender of your choice.
0 votes
Angie Wozniak, Agent, Wheaton, IL
Wed Sep 10, 2014
Really a question for your lender.
0 votes
Terry McCarl…, Agent, Cape Coral, FL
Mon Sep 8, 2014
Speak with a lender to see if you can qualify but keep in mind that even if you do qualify you won't get the best interest rates. You might want to focus on increasing your credit score and eliminating some debt before trying to purchase a home.
0 votes
Matt Laricy, Agent, Chicago, IL
Mon Sep 8, 2014
There is only one way to find out, call a lender.
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Sat Aug 23, 2014
If you have access to a credit union start there. If not speak to a local experienced Realtor and ask them to suggest their top two preferred lenders. DO not waste your time speaking to anyone at one of the Big Banks {BoA, Wells Fargo, Suntrust etc)} their the least likely to help you. But your scores while low are sufficient to get a mortgage assuming your debt to income ratios is in line. If you could build your credit score up to between 640 -700 you will get a better rate.
0 votes
Scott Godzyk, Agent, Manchester, NH
Sat Aug 23, 2014
The only person that can tell you without purely guessing is a local and trusted loan officer. Check with a local and trusted bank or mortgage company that will pre-qualify you at no cost. They can tell you if you qualify nowor what you need to do to qualify in the future.
0 votes
Dan Tabit, Agent, Issaquah, WA
Sat Aug 23, 2014
Desiree,
You are getting close. Some say it's "possible" with a score of 580 or above, but the additional conditions make it difficult.
You mention you are paying $900 per month in debt repayment, is this on your own or through a debt consolidator or BK? If you're doing this on your own, great. The other methods may actually harm your chances.
Repaying debt to improve your score quickly may be different from what some may think, Focusing on the smallest balance first and eliminating it will make more progress than a little bit spread across all the accounts. Whatever you do, do NOT close any accounts. Cut up the cards and put them away, but closing the accounts will drop your scores.
Some lenders work with buyers on improving their scores. I would encourage you to find a lender who does this and have them suggest what will have the biggest impact in the least time. You may find that with a few adjustments to your plan you can be on the road to ownership sooner than you think. Best of luck.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more