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Answers (5)
- Marilyn Bell, "MarilynBellSells"
- Contributions:126
What is keeping your score down?
You've both had nice job histories, but your score is indicating that even today, you guys are having some kind of problem with money. Maybe it's disorganization and you just don't get your bills paid on time? Maybe it's overspending and you need a budget? Maybe you're giving too much money away to help others and not leaving enough for yourselves?
The point I'm trying to make is, it doesn't mean you're broke. It doesn't mean you're bad people. It does however mean, there is some underlying problem that continues to today. You need to figure out what that is and how to fix it. Your score will come up accordingly.
You can go out and find someone to give you a mortgage today (with a much higher rate than you should be paying). You can go to a credit repair place who will do everything you can do on your own and inflate your score (however, this is just temporary if they get things off because they will undoubtedly come back on the next time the credit bureau runs it's checks again). You can make a big effort for the next 6 months and get your score down legitimately, but if you haven't solved the underlying problem it will come back down again.
Your score isn't terrible, but it's not a great indicator that you're ready for home ownership. Spend a little time figuring out what's bringing your score down and working on those underlying issues. We want to set you up for success, and it takes a lot to be ready to own a home. You can do it! Good luck!
You've both had nice job histories, but your score is indicating that even today, you guys are having some kind of problem with money. Maybe it's disorganization and you just don't get your bills paid on time? Maybe it's overspending and you need a budget? Maybe you're giving too much money away to help others and not leaving enough for yourselves?
The point I'm trying to make is, it doesn't mean you're broke. It doesn't mean you're bad people. It does however mean, there is some underlying problem that continues to today. You need to figure out what that is and how to fix it. Your score will come up accordingly.
You can go out and find someone to give you a mortgage today (with a much higher rate than you should be paying). You can go to a credit repair place who will do everything you can do on your own and inflate your score (however, this is just temporary if they get things off because they will undoubtedly come back on the next time the credit bureau runs it's checks again). You can make a big effort for the next 6 months and get your score down legitimately, but if you haven't solved the underlying problem it will come back down again.
Your score isn't terrible, but it's not a great indicator that you're ready for home ownership. Spend a little time figuring out what's bringing your score down and working on those underlying issues. We want to set you up for success, and it takes a lot to be ready to own a home. You can do it! Good luck!
- wetdawgs
- Contributions:26804
It may not be a bad thing to spend another year repairing your credit (and building up your down payment, closing costs dollars and a slush fund for six months emergency expenses). Why not? Because it is the rare community where the housing market has stabilized so you may be saving money by waiting.
- Dan, "the_country_hick"
- Contributions:4694
Most lenders are asking for a 640 fico score now. Even if you can get a mortgage at your much lower score the interest rate you pay will be higher than it should be.
The smart thing is to improve your credit and when that is done get a mortgage at a reasonable rate. Several lenders also specialize in credit repair. Talk to one who can help you. Doing some things like consolidating debt or canceling your credit accounts once they are paid off seem like good ideas but can actually hurt your fico score.
The smart thing is to improve your credit and when that is done get a mortgage at a reasonable rate. Several lenders also specialize in credit repair. Talk to one who can help you. Doing some things like consolidating debt or canceling your credit accounts once they are paid off seem like good ideas but can actually hurt your fico score.
- Paula Hinegardner, "Paula Hinegardner"
- Contributions:140
Hi Beverly,
The lending market has changed so much over the past 2 years, that truly every case is different! FHA guidlines are for buyers to have a minimum credit score of 580 but there are always exceptions!
The best thing to do would be to speak to a mortgage specialist... they will be able to guide you and help you understand what your next steps should be.
I work with a great Specialist that I would be happy to put you in touch with. Or, you can visit www.PreviewNashvilleRealEstate.com and click the finance page. Please feel free to contact me any time!
Paula Hinegardner
Keller Williams Realty
[contact info removed by moderator]
The lending market has changed so much over the past 2 years, that truly every case is different! FHA guidlines are for buyers to have a minimum credit score of 580 but there are always exceptions!
The best thing to do would be to speak to a mortgage specialist... they will be able to guide you and help you understand what your next steps should be.
I work with a great Specialist that I would be happy to put you in touch with. Or, you can visit www.PreviewNashvilleRealEstate.com and click the finance page. Please feel free to contact me any time!
Paula Hinegardner
Keller Williams Realty
[contact info removed by moderator]
- Ed O'Connor, "Ed OConnor"
- Contributions:60
Credit scores are very important when purchasing a home as you know. Your work history is also important and it sounds like you both have a been at your jobs over 10 years, that is great. Many times 640 credit scores are what is needed along with proper debt ratios for some loans.
One suggestion would be to talk with a mortgage broker, this should be free for you and talk to them about rebuilding your credit and also what you currently qualify for. This is a great first step into getting out of the current situation and into some acreage!
One suggestion would be to talk with a mortgage broker, this should be free for you and talk to them about rebuilding your credit and also what you currently qualify for. This is a great first step into getting out of the current situation and into some acreage!
Can you purchase a home if your credit score is around 589 - 600
Thank you in advance for your assistance.
Beverly
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