can i buy a home with bad credit but with good income and a large down payment?

Asked by Fernando, Steger, IL Mon Sep 24, 2012

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Cecelia Marl…, Mortgage Broker Or Lender, Chicago, IL
Tue Sep 25, 2012
Hello Fernando,
As a lender, one of the first things we look at is credit. However, bad credit means different things to different people. The standard guidelines to purchase a new home using an FHA mortgage will mean that you need a minimum 640 credit score with most lenders. For a conventional mortgage you will need at least a 660. There are some lenders that will go down to a 620 minimum credit score, however, the guidelines tend to be more rigid. Please also note that a lot of times buyer's are basing their credit score from one of the credit scoring sites, such as, or some derivation of these. The scores on these sites are typically not as accurate as one from your local lender, as these scores and accounts are bought from the credit bureaus. If you'd like further information to find out exactly where you are, please feel free to give me a call. I'd be happy to assist you further. With regards to good income and large down payment, these also play a factor in your loan, however, credit is usually the first stop. Hope this helps.

Cecelia Marlow - Vice President
The Federal Savings Bank
312-738-6294 direct
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Edith Karoli…, Agent, Winnetka, IL
Mon Sep 24, 2012
You know there are many items a lender will consider, the credit is only one of them, good income
is always good and a large down payment helps as well, but we here do not know what is bad
credit for you, i.e. what is it exactly, good income and large down payment, but no numbers and no
idea what you intend to purchase.

So your 1st step is to connect with an experienced loan officer, from a reputable lender, and sit down
and discuss the financial side of a future purchase, your borrowing power because of your credit score may cost you more money, points or higher interest rate, but the lender will also want to know
all your other obligations, credit cards with outstanding balances, child support if applicable,
college / student debt, car payments amongst others. So you really need to sit down with a good
loan officer and put all the facts in front of him, and he or she will then be able to provide you with
the amount of money you can borrow, which will determine what you can buy and for how much.

And please do not do it on your own, connect with an experienced area Realtor, if you need a recommendation for your area in Steger Illinois, please let me know.

Read the following about the services a good buyers agent will provide to YOU the buyer:

I am wondering why you ask this question here at Trulia, if you are an interested and determined
buyer, you definitely should connect with a local Realtor, a buyers Agent, ie a Realtor who will be on
your side, protecting your interests, finding the right property, arrange showings, answer all your
questions, help you right a good offer, get you also pre-approved for a loan, and negotiate on your behalf the very best sale price and terms and if you commit to one trusted Realtor, he or she will commit 100 % to you and his or her services if you make an offer on a property listed by a Realtor/Brokerage in the multiple listing service will be FREE to you, as Buyers Agents are usually
paid by the seller's side, out of the sellers proceeds at the closing table...

Why would you want to do this on your own, when there are so many details to be taken care of the
right way and so many details need to be paid attention to, inspection appraisals, loan commitment, walk thru etc. etc. in order to bring an offer to a fully executed contract and that to successful closing and home purchase.

Give it a second thought and hopefully you will decide to work with a trusted Realtor, who is experienced in your areas of interest. Please commit to only ONE Realtor!! If you need recommendations get back to me I gladly forward you names..

Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert

Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
And always with a SMILE 
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093 ---- or Check out my website at htttp://
get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
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