we want to buy a house we have no credit and bad credit what do we do first?

Asked by Tena Xyong, Sacramento, CA Mon Nov 12, 2012

i have a credit score of 604 my husband has no credit and justed started.. we are both employed hes is full time working for the governement and i have a part time job follow a seasonal job. we make about 3g a month... we want to buy our first house but dont kno where to go with our situation.. any ideas??

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James Tan, Agent, elk grove, CA
Mon Jul 22, 2013
Hi Tena
first I would try to get a free credit report and scrutinize what is in your credit. Then as suggested by others, I would contact an expert to start repairing your credit.

Your husband can establish credit right away, by simply get a store credit card e.g. Target, use it and pay it off. Pretty soon, he should be able to get a great credit score.

Good luck, and let me know if I can be of further help.
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Eddie Martini, Agent, Auburn, WA
Sun Jul 21, 2013
Tena I have several sources of alternative financing that is very competitive and can help accomplish your purchase goal. You can send a private message to me here on Trulia if you prefer or to eddie@bhrparkplace.com.

530 320 3032
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Sue Archer R…, Agent, Palm Harbor, FL
Tue Nov 13, 2012
Hi Tena,

while speaking to a lender is your first step, there might be a couple of other resources that might help as well. With a credit score of 604, you may need some education on how to improve your credit score, or you could have erroneous information on it. I would suggest you speak to Heather Champlin at Blue Water Credit for an analysis of why your score is so low. The second part of that conversation is how to build credit for your husband. She can be reached at (916) 315-9190 or heather@bluewatercredit.com .

The second idea is to learn about the program now being offered through funds available based on the lawsuit settlement with Wells Fargo. There is $15,000 downpayment assistance available, for a short time, for people trying to buy their first home. They are having a seminar Nov. 15-17th, I believe, to take applications. Why not check it out?

It may be too early for you but maybe not. If nothing else, it will be educational to see how to get started.

And last, you may want to attend one of the first time homebuyer seminars available. One such program is offered by Neighborworks and discusses all aspects of owning your own home.

Good luck!
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Michele Pete…, Agent, Rocklin, CA
Mon Nov 12, 2012
Hello Tena,

All of the suggestions below are right on track - definitely get in touch with a great lender.
You may be closer than you think to buying a house once they pull your credit scores.
If you husband has ever paid a cell phone bill, gym membership, car payment, insurance, etc.
Credit can be created showing his on time payments and consistent obligations that were met.

In addition, there are many great programs available to 1st time home buyers.
From 100% financing to 99.5% financing and down payment assistance.

Happy to help if you have more questions.

PS. Please do not be afraid to contact a lender. They are there to support you through your purchase
and guide you through the many options available to your family.

As a final note... PLEASE go with a local lender who has an office in or near where you live or would like to live. This makes it easy to run in and drop off paperwork, sign documents, meet to discuss options, and when it comes to purchasing - finalize your home.

Michele Peterson
Keller Williams Realty
(916) 743-5934
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Jim Walker, Agent, Carmichael, CA
Mon Nov 12, 2012
When you buy that first house you are making a long term commitment to live there, maintain it, make the payments for many years to come. Figure out what your own budget is. Find out what percent of your income you can afford. A loan officer or real estate agent can provide information on how to budget for housing.
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Claudia Mull…, Mortgage Broker Or Lender, Fremont, CA
Mon Nov 12, 2012
Your first step is to work with someone to help you improve your credit score and establish one for your husband.
It may take about a year, but it ill be worth it!
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Lex Spaeth, Agent, Sacramento, CA
Mon Nov 12, 2012
Hi Tena, contact my lender (see below) a lot of his past clients had bad credit and they are now first time home owners. He will take good care of you. As soon as you are ready I will help you on the Real Estate side to find the perfect home for you.

Craig Mitchell
Cherry Creek
Mortgage Banker
5751 Sunrise Blvd
Citrus Heights, CA 95610
(916) 864-3952 direct
(916) 202-0746 cell
(866) 895-1929 fax
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Kylee Roe, Agent, Sacramento, CA
Mon Nov 12, 2012
Start with a great lender! They can tell you what, if any programs are available to you. You have three credit scores, are you sure 604 is the accurate score a lender would consider? What are the other two? The other consideration is your debt to income ratio, or how much your monthly expenses are, vs. your income. Even if your credit score is 800..if your DTI is too high, that doesn't help!

If you're currently renting,and have a good rating as a renter/payer, than that can help!

Best to check with a lender now, to see what you have to do to qualify, and who knows, you could be six days away or six months, but better to check now and take the steps you need, while home prices are still reasonable.

Try Evelyne at Vitek mortgage. She does a fabulous job with tough credit--916-452-8800.
Good luck!!
Web Reference:  http://www.kyleeroe.com
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Michelle Tho…, Agent, El Dorado Hills, CA
Mon Nov 12, 2012
I would talk to a lender that specializes in credit repair. He or she can help speed up the repair process and before you know it, you will be in your home. You should also focus on saving for a down payment of atleast 3.5% down plus closing costs. Your lender can give you an estimate as to what those fees are. You may be able to get the seller to pay for some of them :) Good luck!
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