My credit is terrible but my income is great. Is there anyway for me to buy a home?

Asked by Marsinmidland, Brighton, CO Sat Jul 28, 2012

Just moved into Brighton Colorado, need a home asap. I am staying in a hotel at the moment. I just recently received a job promotion, and I will be making 5200 monthly in salary plus about 2000 in bonuses. Me and my girlfriend are looking for a home but our credit is terrible. We run into this problem often and are stressed to the max. We thought about credit repair with veracity but don't really know if I trust that. What can I do?

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Brooke Hengst, Agent, Centennial, CO
Sun Oct 14, 2012
Hi Marsinmidland,

If you are still in a hotel, you have my thoughts as I know this is a tough place to call "home". Here are my thoughts regarding your situation and how I would advise any of my clients in this situation.

- I would definitely speak with a VERY EXPERIENCED mortgage broker who can pull your credit and help you talk through what needs to happen in order for you to be able to qualify for a home purchase. I have several folks I would be happy to refer you to, just let me know!

- I would keep your eyes peeled in the rental market as it may just be a fact of life that you need to consider renting for the next 6-9-12 months in order to make the improvements you need on your credit in order to purchase a home.

- You could also speak with a mortgage broker about the idea of having a co-signer to see if this would be an option.

Please feel free to reach out to me if there is anything I can do to assist!

Brooke Hengst
Innovative Real Estate Group
(720) 988-5952
0 votes
Robert McGui…, Agent, Denver, CO
Sat Oct 13, 2012

Two things to consider. I have at times spoken to clients who said my credit is awful, but after we take a look it is not as bad as they thought or can be improved quickly by making the right moves. I would talk with a lender about your specific situation and what your options are. Either he will help you directly to get your credit score up or refer you to a reputable credit repair service to help repair your score and work with the credit bureaus to remove inaccurate or erroneous statements on the report. Again, sometimes it is not as serious as you may think. Best of success.

Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
0 votes
Mary McKerch…, , Denver, CO
Thu Oct 11, 2012
Veracity worked for us. Raised our score from 590 to 650 in about 4 months.
0 votes
David Janis, Agent, Boulder, CO
Mon Aug 6, 2012
Do you know anyone who can co-sign? Income is only part of the requirement. I recommend looking into some sort of credit repair regardless.
0 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Sat Jul 28, 2012
Good afternoon Marsinmidland,

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
Suz A, Agent, Longmont, CO
Sat Jul 28, 2012
I'm leery of using credit repair services, but there is some good advice here.…
0 votes
Sue Priest, Agent, Franktown, CO
Sat Jul 28, 2012
It is possible to repair your credit by working with a lender who understands the issues. It may take some time, but can be done. Please contact me and I can give you the name of my lender and she can work with you.

In the meantime, we can try to find you a "rent to own" home or something like that. It is a difficult situation, but not unsolvable. It will take time, though.

Give me a call or send an email and we will try to point you in the right direction.

Sue Priest
Avalanche Real Estate
0 votes
Matt Mansfie…, Agent, Lakewood, CO
Sat Jul 28, 2012

Check out the lender on my site and he can let you know.

Matt Mansfield
Equity Colorado
0 votes
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