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Answers (6)
- Joanna King, "JoannaKing"
- Contributions:2
I agree- definitely get your scores and go over them with a fine-toothed comb. There may be errors that can be easily fixed. Even though you may qualify for some loan programs, they may not be ideal. The better the credit score, the better the loan deal you'll be able to get.
In the meantime, there's a great online article with 5 "Secret" tips to boosting credit scores. Here's a link to the article: http://www.smartmoney.com/spending/deals/top-5ive-secret-ways-to-boost-your-credit-score-0/ . Anything you can do to boost your credit score will hopefully pay off.
Another piece of advice: do yourself a favor and sit down with a very thorough, well-respected mortgage broker in your area to find out what you qualify for before starting a serious search for a home. It can be devastating to search and search, find your dream home, then find out too late that you don't qualify to purchase it. Even though it may be a pain at first, mortgage brokers who ask to see a lot of documents up front (W-2s, tax returns, etc.) and ask a lot of questions have a much lower chance of having a deal get rejected by the underwriters (which would happen after you identify the home of your dreams, invest money in a home inspection, sign the Purchase and Sale agreement, and probably have a bunch of boxes packed). Trust me, doing your homework in the beginning can prevent a whole lot of frustration later.
Hope that helps and good luck! :)
In the meantime, there's a great online article with 5 "Secret" tips to boosting credit scores. Here's a link to the article: http://www.smartmoney.com/spending/deals/top-5ive-secret-ways-to-boost-your-credit-score-0/ . Anything you can do to boost your credit score will hopefully pay off.
Another piece of advice: do yourself a favor and sit down with a very thorough, well-respected mortgage broker in your area to find out what you qualify for before starting a serious search for a home. It can be devastating to search and search, find your dream home, then find out too late that you don't qualify to purchase it. Even though it may be a pain at first, mortgage brokers who ask to see a lot of documents up front (W-2s, tax returns, etc.) and ask a lot of questions have a much lower chance of having a deal get rejected by the underwriters (which would happen after you identify the home of your dreams, invest money in a home inspection, sign the Purchase and Sale agreement, and probably have a bunch of boxes packed). Trust me, doing your homework in the beginning can prevent a whole lot of frustration later.
Hope that helps and good luck! :)
- Scott Butcher, "Central TX Expert"
- Contributions:109
stebastian,
Depending on how quick you want to buy a home, I suggest talking to a mortgage professional first to find out exactly what your 3 FICO scores are from the credit agencies. From there, you and your mortgage professional can map out a strategy that fits your needs. It could be that your score is high enough to proceed today and buy a house OR have to wait 6 months to improve it to a level that allows you to buy a home. If your in Big Spring, then you could be eligible for USDA financing (up to 100% financing) or at least FHA finanancing, plus other first time homebuyer programs as well.
Regardless of what you decide to do, the conventional wisdom going forward is that interest rates are going to be higher by year end 2011, so you might not save as much in terms of the actual interest rate you would recieve today versus the rate you get with a higher credit score in 6-12 months.
Good luck!
Depending on how quick you want to buy a home, I suggest talking to a mortgage professional first to find out exactly what your 3 FICO scores are from the credit agencies. From there, you and your mortgage professional can map out a strategy that fits your needs. It could be that your score is high enough to proceed today and buy a house OR have to wait 6 months to improve it to a level that allows you to buy a home. If your in Big Spring, then you could be eligible for USDA financing (up to 100% financing) or at least FHA finanancing, plus other first time homebuyer programs as well.
Regardless of what you decide to do, the conventional wisdom going forward is that interest rates are going to be higher by year end 2011, so you might not save as much in terms of the actual interest rate you would recieve today versus the rate you get with a higher credit score in 6-12 months.
Good luck!
- Chris Pray, "Chris Pray"
- Contributions:103
As stated by the others above, a lot depends on the actual credit scores you have. A lender is going to pull your information from three credit reporting sources. I would suggest getting with a local lender would can sit down with you to go over your credit history and direct you in what steps to take. You may be able to take immediate action on some credit items in addition to other longer term actions that could help improve the score faster.
- Naima Sumner, "Dallas Ft. Worth PRO"
- Contributions:2849
I would suggest that stay put a little longer. Get a copy of your credit report from all 3 bureaus and see what you can pay off or remove mistakes if any. When your score goes up, you will be a much stronger buyer and can get better deals.
Naima
Naima
- Jeff Trevarthen, "CalSTRS Specialist"
- Contributions:15
It definitely depends on how low the credit score is. Anything below 680 and you're going to be paying more for the cost of credit because you are "allegedly" at a higher risk according to the FICO scoring model.
- Tracy Moore, "TracyMooreN.County"
- Contributions:45
There are some special loans even if you have a low credit rating. It just depends how low it is, what your income is, and how much down payment you have. I was just speaking to a lender about loans for people with credit scores in the 600 range.
want to buy a home have the down payment but credit score low
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