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Can we buy a house? How would we do this?

hello! so I am completely new to buying a home, and need ALOT of help! I am a stay at home mommy and my fiance makes a good living off of his job but, his credit is shot because he did own his own company that actually went under. So my question is, Would there be anyway possible for us to be able to purchase a home? And what exactly are the next steps to take?
  • March 11 2013 - Columbus
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Answers (5)

First I would go to a Full Service Realtor who offer full service from Mortgage Brokers, to Title Companies, to Credit repair, which can take a while to fix it. Credit repair companies work with customers to improve their credit and bring it to an acceptable level in order to get you qualify for a Mortgage. There is a charge for the credit repair, however it is worth it. Not just for qualify for a loan but also to establish your credit back. When your a home owner, you need your credit establish just in case anything breaks, your A/C unit get's damaged, your Refrigerator goes, wash, dryer, etc. There are also Real Estate companies which work with insurance companies which cover appliances which would be cover under the plan for a specific time of period. These are issues you need to know as a homeowner. Pick a company which is going to guide you throughout the whole process, and educated you as a client on what to expect. I hope this helps you. Good luck.
  • March 11 2013
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I would contact a mortgage lender first to make sure where you stand with your credit and qualifying for a loan.

If he tells you he won't be able to get you qualified for a year or two, there are other options such as Seller Financing or a Lease With Option To Purchase.  

Seller Financing is like getting a mortgage loan, with the Seller acting as the bank.  You pay the seller your monthly mortgage payment.  There is typically a balloon payment after so many years (number of years depend on what buyer & seller agree on).  The balloon payment also gives you time to get your credit straightened out so that you can qualify for a loan at a later time, but still get the house you want.  Seller financing terms usually have a higher interest rate than a regular mortgage loan.

A Lease Option is a way for you to get into the house you want, lock in the price you want to pay for it and it also gives you the time you need to repair your credit so you can qualify for the mortgage loan in a year or two, depending on what you put into the Lease Contract  So you're basically renting the house you want to buy until you can actually qualify for the loan.

Both of these options can typically ask for a substantial down payment which is usually non-refundable, so you need to make sure after you talk with a mortgage lender that you would indeed qualify for a mortgage in a year (or two) depending on what he tells you.

Good Luck!
  • March 11 2013
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Your first step is to meet with a mortgage lender. You can probably kill two birds with one stone by speaking with a local real estate agent first. The realtor will likely have a mortgage professional to refer you to. Meet with the mortgage professional and explain your situation. Let the mortgage person know you want to get pre-approved for a mortgage and ask if there is anything credit repair you must do first. They can give you advice on what steps you should take first towards clearing up your credit---it might be that you just need to pay a few small bills to get a quick boost to your score. Once you work down your to do list, meet with the mortgage professional again and you should be set to obtain a pre-approval.

Once you have that pre-approval letter you can go back to the real estate agent and work out a gameplan for identifying and purchasing your home.
  • March 11 2013
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Contact a local realtor, we can put you in direct contact with a local lender. The person I send my buyers to is great. Even if you can't qualify now, she will let you know what it will take to get to that point. You can send me a message from my Zillow profile and I can get you her contact info.
  • March 11 2013
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Profile picture for wetdawgs
Welcome to the adventure of home buying.    With "shot credit" and a good income the first step is to put together a strategy to improve the credit.  

Here's a link to Zillow's buyer's roadmap.  
  • March 11 2013
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