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First time home buyer with non established credit.

I am wanting to buy my first home, and ! am 21 without much credit at all. How difficult is it to buy a home with the credentials I have?
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September 16 2012 - US
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Answers (4)

It takes time to build credit, similar to a house, slow but steady wins the race. If you do not have a credit history, lenders do not know whether or not they should give you money. Without any credit history, they can't tell if you are  responsible or a bad risk. You need to build credit in order to prove your creditworthiness.  Ask bank about secured credit cards, you deposit money this way the bank takes little risk and you build credit slowly.  You can also get a co signer for your loan, this way you use the co signers credit and they vouch for your paying off the loan. Retailer cards, rent to own furniture or gas cards work well also just pay early every month and always pay double minimum payment. After you build slowly, you will get a lot of credit card offers but dont be tempted to max out your credit, only borrow when it benefits you, make sure your interest is low and only use 25% of credit line always paying it off. Conitnually monitor your credit for mistakes and write letters to vendors immediatly if you protest a debt. You do this by writing a letter to vendor at the begining of every month. Be Patient & Happy Home Buying:)
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September 16 2012
Other than talking to your local Loan Officer I would recommend that you start off by opening up a few small secured credit cards. I had horrible credit 8 years ago and no bank wanted to touch me with my credit scores very low. I then went and opened up a secured credit card with 100.00 down and paid my card on time very month while keeping the balance low. After about 7 months I received another credit card offer in the mail from a different bank. Within 2 years my credit jumped very high and every bank wanted a piece of the action. That is the best thing I can recommend to you. Have atleast 3 lines of revolving credit. Keep your balances low and your monthly debt to income ratios low. Good luck. 
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September 16 2012
Meet with at least two mortgage brokers and seek their assistance in building up your credit.  It is easier to build up credit than  to fix it when its bad.  The best of luck!
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September 16 2012
Profile picture for wetdawgs
With no credit, the best way to buy is all cash.     If that isn't possible,  start studying what it is required to build up an excellent credit history.   The forums at myfico.com have some excellent discussion with knowledgeable folks.

Here's some Zillow links
What is a credit score and why it is so important
Hints on raising your credit score.


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September 16 2012
 
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