Profile picture for MichaelKrenisky

what are the steps of buying a home and what chances do i have if my credit is bad

first time buying a home
  • December 20 2011 - Parma
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Answers (11)

Profile picture for Ofe Polack
The first step is to talk to two or three mortgage brokers to ascertain what needs to be done to improve your credit.  Once you have the ability to obtain a loan then contact a buyer agent.  The very best!!!
  • January 22 2014
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If your credit score is lower than 640 or lower you may have some issues, but its not impossible the lender just may require you to put down 20% or more.  I know they are changing the rules all the time and still are trying to tighten requirements so the best would be to talk with a mortgage broker as most of them can do credit counseling.  Hope this helps.  Good luck! 
  • January 07 2014
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If you feel or know your credit is bad, go first to a loan officer and see where you stand. No reason to put yourself through the disappointment of reviewing a house if you need time to correct your financial picture.
  • January 02 2012
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1) Obtain a pre-approval letter from a mortgage lender.  This will let any realtor or seller know that you are qualified to purchase a home.

2) Find a home you like and make an offer / negotiate with the seller

3) Once you have an accepted Purchase Contract, conduct Loan Application

4) Order appraisal to verify that the home is eligible for Financing and has the necessary value.

5) Submit your file to Underwriting for Loan Approval.

6) Receive Loan Approval and schedule your closing

7)  Move into your new home!

Your question regarding credit has a few 'what ifs' in it.  Most lenders require a 620-640 credit score in order to obtain mortgage financing.  If your score is lower than that you may be able to work with a qualified person to do some credit repair to increase your score.

If you have not, I suggest you visit http://www.AnnualCreditReport.com to access a free copy of your credit report.  This will be a good starting point for you to know what is appearing on your credit and if it is accurate.

Feel free to email or call for more information!
  • December 22 2011
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The first step to a buying a home purchase is to speak with a mortgage professional. Even with less than stellar credit there are progams that may help you get into a home.
  • December 20 2011
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Profile picture for Ofe Polack
We all agree that your first step should be to contact a lender, in the privacy of the lender's office you will be able to share your financial background and the lender will guide you as to how to fix it.  You may not be able to purchase a home immediately, but if you are focused and follow the lender's advice in time you will be able to apply for a loan.  The best of luck!
  • December 20 2011
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Find an experienced lender who knows how to deal with credit issues. An experienced lender will know the steps to get your score up to the necessary level and also know how to handle debt to income ratio and tell you which debts to pay down etc. Most lenders will do this free of cost.  
  • December 20 2011
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Profile picture for Juan A Pineda
you already know that you credit is bad you need to start fixing it call a mortgage company a loan officer will tell you what to do.
good luck
  • December 20 2011
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First and foremost your first step before even setting a foot in a home is to talk to a lender.  They will tell you what your credit score means in terms of qualifying, tell you how much monthly payment you can afford, and explain to you the types of programs you qualify for.  If you need a referral for a lender feel free to let me know.  Credit unions are a good place to start if you have an account with one.  Best of Luck!
  • December 20 2011
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Profile picture for sryan1980
you will first need to improve your credit. work with a credit specialist or realtor to negotiate down the outstanding balances you owe to different creditors. pay off all the accounts you can.

then start saving for a downpayment. FHA loans required just 3.5% down and have a very competitive interest rate
  • December 20 2011
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The first step to buying a house is checking with a lender to see if you are qualified for a loan.  If you aren't, most lenders will tell you what you have to do to obtain a home loan.  Then you should contact a real estate agent to see what the next step is.  If you aren't sure about finding a lender, you can contact a real estate agent and the agent should know a competent lender to refer you to.
  • December 20 2011
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