what if my credit is bad can I still by a house?

Asked by Valpachevo18, San Antonio, TX Mon May 27, 2013

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George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Tue May 28, 2013
Many people think their credit is worse than what is really is. Since I was in the same boat after my divorce, I had to learn first hand how to work on cleaning up a credit report. I have written several blogs on this very subject and have helped many people get back on track. Please feel free to read them by clicking on the links below or I would be happy to answer any questions you may have and help put you on the path towards homeownership. Also, I hope you managed to stay safe with the recent floods down your neck of the woods, we here in DWF have been spared the heavy rains.

Best of Luck!

http://www.trulia.com/blog/george_raymondo/2011/03/can_someo…

http://www.trulia.com/blog/george_raymondo/2012/03/no_credit…
Web Reference:  http://www.AFN-Loans.com
0 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Tue May 28, 2013
Good morning Valpachevo18,

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.
http://www.consumer-action.org/

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.
http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
Mr Credit, Other Pro, San Diego, CA
Mon May 27, 2013
Probably not, but you never know. Get it pulled by a lender and find out where you stand. If it doesn't work out, there is a great non-profit Credit Repair company I use called United Credit Education Services. It's full service credit repair for $499 flat fee, no matter how bad it is. 1.800.525.1349

- Mr. Credit
Web Reference:  http://www.MrCredit.org
0 votes
Dennis Evans, Agent, Clifton Park, NY
Mon May 27, 2013
Many lenders can help you with bad credit if you are willing to work with them... sometimes credit reports have incorrect information, some lenders can examine your credit report and tell you exactly what the issues are and how to repair your credit... The issue is not how bad your credit is today... But what you can make it in the future! ( every journey starts with the first step)
0 votes
Peter Mohyls…, Agent, Destin, FL
Mon May 27, 2013
Do you have funds to pay cash?
0 votes
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