I tend to agree with Naimi. Best to start working with local lender who can look at the specific situation. A good lender can look at a poor score and tell you what moves to make to get it to 620-640. We have seen some clients improve scores rapidly by cleaning up past issues still on credit report. The fact yours is very high helps. Contact us if you would like one of our preferred local lenders in League City areaSincerely,Angelica
There is a recent move by lenders and FHA will soon follow to require a score of 640 or better. I agree with the comments to focus on moves that will improve yoru score to 640 or above. A good loan officer will be able to look at your credit report, run what if scenarios, and tell you what moves to make to improve credit. Our clients expierience at this is often to improve by 20-30 points in 30-60 days. Usually involves paying down credit cards to 25% of maximum, sometimes initiating 1-2 new cards and charging some small amount like $100 and then paying minimum payments each month, or lastly to clean up past issues on credit reports that is dragging it down like credit in dispute or not paid in full.Sincerely,Angelica
We do a lot of foreclosure purchases. Most repsond in less then 3 days. A couple have taken 1-2 weeks.
One of the most common loans today is an FHA loan with 3.5% down payment. You can ask for typically 3% closing costs to be paid by seller which helps conserve your cash. I agree with the comment to not pay off you auto loan and to ensure you are not late on any credit payments at all.Next step is to meet with one or more loan officiers. Often a REALTOR® can reccomend one he or she knows has a track record of closing on time, low fees, and excellent communications.The loan officer(s) will be able to provide you with Preapproval letters showing what is the maximum home you can buy. then its up to you how much safety margin below the maximum you want to go. With limited cash flow i would reccomend you get a Home Warranty paid by seller to cover unexpected problems with the home.
Usually in a short sale situation, if it goes into foreclosure your Mortgage company will send you a notice to vacate by a certain date. However all states have different laws, I would recommend you talk to your agent's broker.