Where do I start? I need to find out if I can qualify for a home loan. I have a low 500 credit score. Will I ever get a loan??

Asked by jdhtb, Minnesota Thu Oct 4, 2012

I am a single parent and I just changed jobs a few months ago. But I worked across the street for almost 4 years. I have rented in the same town home for over 5 years. Paying over $500 a month it's time to move into a house. I have collection accounts.

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Christine Ro…, Agent, Mora, MN
Fri Oct 5, 2012
Jdhtb, starting on the path can sometimes be the hardest step. I would start with a reputable mortgage pro that has rebuild options. It can go fast or it can be slow the best answer is to just see how long it will take or what steps to take. I can connect you with some great resources.
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Ryan Bretzel, Agent, Stillwater, MN
Fri Oct 5, 2012
Chris is right in saying that it is totally up to you. My honest professional opnion based on what you have said so far makes me think that owning a home might require you to look at your finances closely. If your current monthly rent is pushing your comfort level I'm not sure if owning a home would be a smart thing at this time. Just imagine if your car broke, and water heater broke. That would be $500 each on top of the mortage, insurance, and taxes.

If you currently are in a very comfotable situation, have at least about 3% for a downpayment saved up then you might be ready (provided your credit score is acceptable to a lender)

Sometimes telling seller's not to sell or buyer's not to buy seems odd, but it is the right thing to do. Best of luck!

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I understand that thinking and that's what I am always telling people. I am comfortbale and I have my bills set. Homeownership is tough when you are responsible for more than paying rent and living a strict budget with NO savings is not a good spot for a single parent to be in.
Flag Sat Oct 6, 2012
Chris Block, , Saint Paul, MN
Fri Oct 5, 2012
Step #1- Get in contact with a lender. It is time to start building a relationship and gaining some knowledge on how to be financially fit. I don't know if you need a credit repair company it seems common sense stuff to me. If you have collection accounts you need to pay them off. If you don't have any credit you need to have 3 minimum. That is the industry standard. However, did you know that rent can be used as one of them? There are other non-traditional credit that can count for that minimum as well.

Step#2- This may seem harsh but the only way you will get a loan is stop being dramatic about it and take action. Of course you can get get a loan! But it is a reflection of your financial decisions. If you don't put the effort into it you WILL never get a loan. It is 100% in your control.

Educate yourself on the finances and it will all work out. If you would like a referral I know of a good lender I send all my buyers to in similar situations as yourself. It all starts with ACTION.

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