Profile picture for neosaiyanzero

New homeowners with poor credit

Me and my wife want to be new homeowners very badly but feel that our credit isn't good enough to be able to get a house we want...Just dont know where to start and need advice...Help!
  • October 07 2013 - US
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Answers (5)

Profile picture for edboner
Start with a local lender.  Discuss your score and he/she will explain what needs to happen before you qualify to  borrow.  Saving the money for a downpayment, managing your debt and reducing long term debt will all improve your chances. 

Your visit should also give you a rough target price range.  You might enjoy driving by local listings to become familiar as you improve your credit and prepare?

Let us know what happens. 
  • October 09 2013
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Where to start, my friends, is by rebuilding your credit.

People damage their credit, neo,much the same way people hurt themselves at the gym or on the track. Usually, it's tied to impatience - taking on more than you can handle. The thing is, if you tear up your ankle, you don't try to run on it - you rehab it, you nurse it along, and get it strong enough to carry you on that 5K fun run, that half-marathon . . . a thirty-year mortgage is a marathon, and it's not so wise to commit to it until your credit is healthy.

All the best,

  • October 08 2013
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What is your exact credit score? Who knows, there might be a lender like myself that can work with your credit score. For example, I have been able to give out loans with scores as low as 580. So if you are in this range or above, you might have a shot at getting a loan. If not, the simplest way to fix your credit would be to pay off your debt and revolving credit balance on time. Either way, I recommend you speak with a lender like myself that would be glad to help and guide you through this process.

If you have any other questions or need a loan please contact me through the information on my profile page. I hope this helps and good luck!
  • October 08 2013
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Profile picture for CallTheSisters
You can either contact a mortgage broker to run your credit or you can pay online to get your 3 scores.

Get free copies of your credit report from all 3 bureaus.  Sit down with a highlighter and mark any items which are negative, collections, lates, etc.

You need at a minimum 3 "good" accounts you pay every month on time.  You need 12 months of no late payments. Your credit card balance should be no greater than 1/3 of the credit line.  You need to show you use your credit wisely without being maxed out.

Start by doing a budget.  List all your current monthly expenses.  See how much money you have left to throw at your debt.  Aim to pay off the smallest debt first and keep working up to the larger ones.

Then try to reduce expenses.  First place to start is car insurance.  Shop around and see if you can find cheaper car insurance.  Whatever you save a month like 50 or 100 a month throw at the debt.

Reduce your cell phone bill.  Get a vanilla plan without frills.  Take that savings and throw at the debt.

Reduce your cable services.  Take a minimum plan.  Throw that savings at the debt.

Use coupons when you shop for groceries.  Throw that money at the debt.

A good self help reference is to google Dave Ramsey and read some of his advice.
  • October 08 2013
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Profile picture for Brookstone Mortgage
How about starting with finding out what your credit is. "Feeling" your credit score isn't good enough should not be a factor in deciding whether to purchase or not. Go see a lender and find out the credit score and all other pertinent qualifying criteria and then you will know.

"Most" loan officers don't bite; there is nothing to fear.
  • October 07 2013
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