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Answers (9)
- Belinda Singh, "westcoastrealtor"
- Contributions:182
Obtain a copy of your credit report - preferably a tri-merge. Be willing to pay if necessary. Dispute any errors first. Get organized and pay any outstanding monthly obligations on time for the next 12 months. Close any credit cards you can live without even if you just keep paying them off. Keep your oldest credit card but try to negotiate as low an interest rate as possible.
Payoff any old debts. You can often negotiate these down. Be sure to get written agreements prior to paying anything off and pay by cashier's check, not over the phone. Collectors are notoriously dishonest and will say they never agreed to this or that if you do not have records to prove it. Make sure that whoever says they own your debt really owns it. You can get help from the credit reporting agencies if you have questions. Keep accurate records of whoever you speak with every time in one notebook. Keep all your records together.
Within a year, your credit score will likely improve and you can evaluate your situation at that time.
Payoff any old debts. You can often negotiate these down. Be sure to get written agreements prior to paying anything off and pay by cashier's check, not over the phone. Collectors are notoriously dishonest and will say they never agreed to this or that if you do not have records to prove it. Make sure that whoever says they own your debt really owns it. You can get help from the credit reporting agencies if you have questions. Keep accurate records of whoever you speak with every time in one notebook. Keep all your records together.
Within a year, your credit score will likely improve and you can evaluate your situation at that time.
- Georgina OBryan, "GOBryan1"
- Contributions:483
If your credit is not atleast a 620, you'll find it very difficult to obtain a mortgage, so naturally, getting your credit straightened out is priority and key. Of course, that doesn't have to stop you from purchasing a home if you can pay cash for one.
You might want to look into HUD homes as an option. I know someone that bought a $130k home through HUD, paid $51k and invested $5k, then flipped it a few months later for $130k. Nice profit but the point is that you can get some really good deals through HUD that don't necessarily need alot of work. You would need a Real Estate Agent for the transaction but you can look up their website and see what's available.
You might want to look into HUD homes as an option. I know someone that bought a $130k home through HUD, paid $51k and invested $5k, then flipped it a few months later for $130k. Nice profit but the point is that you can get some really good deals through HUD that don't necessarily need alot of work. You would need a Real Estate Agent for the transaction but you can look up their website and see what's available.
- Drew Ludlow, "DrewLudlow"
- Contributions:505
Don't go to freecreditreport.com - that's the one in the commercials. You will get a free credit report, but will have to pay a monthly fee for monitoring. Go to annualcreditreport.com. That one is absolutely free with no commitment.
- Marco Mello, "Marco Mello PA"
- Contributions:11
James makes an excellent point. Also, don't assume that your credit would prevent you from being approved for a home loan. Many buyers are surprised to find out that dings that are more than 24 months old, do not impact their credit as much as they would think. Contact an experiened mortgage broker who can help you plot a course towards successfully closing on your very own home. Take a deep breath and take action now! Best of luck!
- wetdawgs
- Contributions:26830
Take time and clean up your credit. Save up a substantial down payment, house repair fund and emergency living expenses fund. Then, start looking and enjoy!
- James Callas, "ABBAUSA"
- Contributions:957
HUD has a program you might qualify for.
"Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence."
The is 50% off the list price.
Contact a Realtor near you.
http://www.hud.gov/offices/hsg/sfh/reo/goodn/main.cfm
Good Luck!
James Callas - Realtor®
"Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence."
The is 50% off the list price.
Contact a Realtor near you.
http://www.hud.gov/offices/hsg/sfh/reo/goodn/main.cfm
Good Luck!
James Callas - Realtor®
- Nikki Harsa, "Nikki Harsa"
- Contributions:93
Absolutely, agree. A good mortgage broker can help show you how to clean your credit up. You can begin checking your credit with freecreditreport.com, see if there are any errors. Secondly, don't allow your credit cards to exceed 30% of your available credit. That seems to be a deal breaker for some of my buyers alot lately. You'd be surprised, US Bank has a great program out called the Amercian Dream Program, and can take credit scores as low as 600! Local Credit Unions are a good place to start too, letters of explanation can help, and since these banks don't sell the loans on the secondary market, they can take higher risks in lending.
I hope this helps!
I hope this helps!
- Jo Kleinsorge, "CallJo"
- Contributions:79
I agree, a good mortgage broker can really help you take the right steps to get your credit score where it needs to be. It is amazing how much of a difference some simple changes can make.
You could also consider owner finance homes but they can be difficult to find and some owners will inflate the price to take the risk on.
You could also consider owner finance homes but they can be difficult to find and some owners will inflate the price to take the risk on.
- Ryan Halset, "RyanHalset"
- Contributions:730
I'd start with a reputable mortgage broker in your area who can pull your credit, analyze it, and give you a structured plan on which debts to pay off, & which lines of credit to close or open.
It's mostly about having the right kind of debt, not having more than you can reasonably afford - and paying on time, all the time.
With that, they'll be able to give you options on loan programs for you - how much you can afford based on current rates, your income, finances, and credit.
It can take some time. Don't rush into anything - it's best to set good financial patterns before taking on a huge investment like a house.
It's mostly about having the right kind of debt, not having more than you can reasonably afford - and paying on time, all the time.
With that, they'll be able to give you options on loan programs for you - how much you can afford based on current rates, your income, finances, and credit.
It can take some time. Don't rush into anything - it's best to set good financial patterns before taking on a huge investment like a house.
I am a teacher who has horrible credit due to my college days. How do I go about getting a house?
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