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Rent vs Buy in Keene : Real Estate Advice

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Thu Jul 2, 2015
Dan Tabit answered:
I applaud you for rebuilding after a tough time. Many people have done it successfully but let me warn you Rent to own is not a good way to go about it. Most of the people who find these schemes never buy the home and leave the arrangement worse off than if they hadn't done it at all.
Don't spend money on fictitious lists. If you want to rebuild your credit follow this advice and you'll be far better off.
1. Find the cheapest place you can stand to live in and rent it. The fact that it's not a house or your "dream house" will serve as motivation to work hard and get out sooner.
2. If you have any left over credit, use is wisely. Credit is a muscle which if used properly will grow and build you up. If misused, will create pain and discomfort and do long term damage.
3. If you don't have any existing credit, go to your bank or credit union and ask for a "secured card". You deposit money into a savings account and you have most or all of that amount as your credit limit. As you use the card for normal expenses like gas & groceries, paying it off monthly, they will increase your limit and eventually allow you to have unsecured credit.
4. You need at least 2 lines of new credit, in good shape to qualify for a mortgage. You can repeat step 3 down the road for a second card.
5. Save all the money you can. Build up an emergency fund and then more. Some of this will be your down payment once you're ready to buy. The more you can accumulate the better off you'll be.
6. Find your lender early. A great lender may help you with the credit rebuilding. They can help remove errors on your file quickly and boost your scores legitimately. Not all lenders do this, so ask around.
7. DO NOT close any personal accounts, pay off any old collections unless instructed by your lender or other legitimate credit repair person. Closing accounts & paying off old collections may lower your scores.
8. Any remaining joint credit accounts probably should be closed. If your ex spouse accesses a dormant account and runs up balances or pays late, you'll be hurt. It doesn't matter to the creditor that the judge gave you some accounts than them others. If they were once joint, the lender will report on both of you and you can be damaged without knowing it.
There is lots more, but this will get you started. Avoid "rent to own" as the vast majority are scams designed to separate you from your money.
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