We want to buy a house, but our credit is bad, can someone suggest a financial/credit advisor?
Question:
We're in California, Bay Area.
Answer:
For buying a house Credit History is much more important than credit score. Often, the lack of credit history is equated with bad credit. You should be aware that lenders will go through your credit report once you apply for loan for buying a house. Therefore you should polish your credit report. Anyway, in order to establish a good credit history and at the same time risen your credit score in a short time do following things:
1) Close all of your credit cards but one. It reflects in your credit report and it is a very good sign. For instance say that you have 5 credit cards with $1000 credit limit for each. Therefore you are responsible for $5000 of possible debt. But when you close 4 of them, now you are only responsible for $1000 of debt which lowers the level of risk of lending money to you.
2) If you have any loan, like car loan or any balance on your credit cards, try to pay more than your monthly payment for 6 months or something. I mean say your monthly due on your car loan is $150, try to pay $250 each month. Lenders can see these trends in your credit report and they see that you’re a responsible borrower.
If you don’t have such loans, I suggest getting a $3000-$4000 loan and paying it off in full in 5-6 months. You might pay $200-$300 of interest but you will save thousands of dollars in your home mortgage and interest rates.
Also checkout http://www.howtoestablishgoodcredit.com/...
There are lots of articles there, related to your question, which you can find useful to boost your credit.
Try a mortgage broker, they have access to hundreds of mortgage companies, some of whom specialize in problem credit. That way you will have your financing lined up before you find a house.
There is a site at http://www.mortgageawareness.com... that has free advice and information for first time home buyers with bad credit.
Work with these great buyers all the time.
First get a copy of your Credit Report which would be a Mortgage Copy not the Consumer Copy. Consumer Copy are the ones you get free from the internet. Although good they dont go in depth as Mortgage Copy. Than have someone explain the Mortgage Copy to you. What you need to fix and what you need to dispute.
Go to this website:
creditboards.com
Average people help people with bad credit get into property. Dont pay for any services the advice her is free and that is what it was intended for.
Every 3 months get another Mortgage Pull and see where you stand as in those companies that took off your discrepency to your credit score.
Right now if you are in the low 500's you can qualify for a home loan but you need at least 20% down and you are looking into almost 9-12 on the first and double digits on the 2nd. It is better for you to fix your credit let the market settle which it is doing now and than go and get yourself a home.
Good luck and HAPPY LIVING!
Go to the below website. After filling out the form, you will receive several quotes to choose from and you will be personally contacted by a representative to work out a solution
More Related Questions & Answers...