first time buyer, 8% down, bad credit how screwed am I ?

Asked by trik32, Deer Park, NY Wed May 1, 2013

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Wed May 1, 2013
Good morning trik32,

First step:

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:

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
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

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2 votes
Thomas Moser, Agent, East Northport, NY
Wed May 1, 2013
Well, there's bad credit and BAD credit. You might be surprised what you may qualify for. You sound like you may be a good candidate for an FHA loan in which you can put as little as 3.5% down. Talk to a mortgage professional to get a good idea of what you can do. It will relieve your concerns.

Tom Moser
Licensed Associate Broker
Keystone Realty USA

Long Island's Commission Rebate Realtor
1 vote
Anna M Brocco, Agent, Williston Park, NY
Wed May 1, 2013
Depends on how bad the credit really is; there are other factors involved in determining mortgage qualification, therefore visit with any licensed loan officer; if you don't yet qualify, at least you'll know what needs to be done.
1 vote
Rebeccatrulia, Renter, United Amigos, Mesa, AZ
Wed Oct 2, 2013
0 votes
Melissa Goss, , Center Moriches, NY
Mon Jun 3, 2013
You will want to put down 20% in order to avoid PMI... as far as bad credit, without knowing your score, odds are you are going to have a tough time with that loan. However, you won't know until you sit down with a loan officer and go over things.
0 votes
Amauryh, , Islandia, NY
Mon Jun 3, 2013
Things might not be as bad as you think. The media does a good job informing consumers it's tough to get a loan but the truth is it takes proper planning and having someone guide you through the entire process. With my 22 + years in the mortgage industry I am sure we can find a solution to help you achieve your dream of home ownership. My office number is 631-881-5105.
0 votes
Irene Renna, Agent, Hauppauge, NY
Thu May 2, 2013
Hello trik32!
the best person to answer that question would be a mortgage individual please feel free to call rich murphy wells fargo 631 786-2908
if after speaking with him you feel you still need assistance please contact me and I will explain a program to you called Naca which may be exactly what you need and they also offer closing cost assistance
feel free to contact me with any further questions you have I be more than happy to help you out
Irene Renna Keller Williams Realty
63129 12180
0 votes
Marcia Spenc…, Agent, Newburgh, NY
Thu May 2, 2013
Good morning, Do not be so hard on yourself, all things are possible you need to sit with a mortgage Bank professional in Reviewing your credit worthiness, income, Length of employment etc...
in Structuring your qualifications in purchasing a property...

Best Regards,
Marcia Spencer, Broker
Ph: 914.361.5994 | 914.396.3416
Fax: 845.784.5898
0 votes
Thomas Brady, Agent, Plainview, NY
Wed May 1, 2013
Hi Trik32, I would give Javier a call, he knows his business and if your not on track now he can get you on track as quick as anyone. The first step in shopping for a home is getting pre-approved, so there is no sense in looking until you sort that out. Good luck.
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
#1 Listing & Selling Office on Long Island
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
0 votes
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Wed May 1, 2013
depends on what you call bad credit. Typically, you'll need a minimum 620 credit score. If you're at a lower score, it's always wise to let a Loan Officer review your credit, so that he/she can advise you on how to rapidly improve your score so that you can put yourself in a better situation. I've seen many of my clients who come to me with scores as low a 560, 580, etc. and I've been able to help them fix their credit (free of charge) and be able to buy a home. Some are able to improve their credit within days and others it takes may months.

Are there lenders who advertise loans for lower credit scores? Absolutely. But I will warn you, these very few lenders have strict and difficult requirements for those with credit scores lower than 620, and always carry significantly higher rates. Considering the fact that often enough it's easier to get a 580 score into a 620 compared to having to pay a much higher mortgage payment, you're always better off exploring your options with an improved score.

If you're in need of a dependable Loan Officer, I'm always available. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(631) 659-2011 Office
(516) 918-5383 Fax
0 votes
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