I Have Bad Credit, Can i buy a house?
Author: kemmyj
Posted: Fri Sep 09, 2005 4:50 pm
Post subject: I Have Bad Credit, Can i buy a house?
my boyfriend and i are looking into buying our first home. we are renting now and the lease will expire in August of 2006. The problem is, we have bad credit. My credit is from debt that i incurred as a young stupid undergrad and have not paid off. The statue of limitations is almost up on most of the debt (I am 26 and he is 27). I have about $5000 in bad credit card debt. My score is about 569. I just bought a new car for the first time and have been making my payments of time. He has no bad debt, but has some late payments on his car note. The main problem is we know NOTHING about the home buying process and are scared to pursuit it because of the debt. What should be the first step for us? Who should we go see first to see what we can do to qualify for a loan? Is it the mortgage lender, a realtor, a counselor, or whom? I am not opposed to waiting another 2 years if it will save us a lot of interest. We just need to know who to turn to first to start the process. Thank you."
Author: tb33
Posted: Sat Sep 10, 2005 4:23 pm
Post subject: I Have Bad Credit, Can i buy a house?
Good qustion! I'm look for the exact order of the home buying process myself.
Author: Ira
Posted: Sat Sep 10, 2005 11:21 pm
Post subject: I Have Bad Credit, Can i buy a house?
he first thing you should do is discuss your situation with a professional realtor. They've seen it all, many times over, and can advise you how to proceed. Remember, it is in their best interest to see you succeed. If you can't get financing, they can't earn a commission.
Ira
Author: polonius
Posted: Sun Sep 11, 2005 10:22 am
Post subject: I Have Bad Credit, Can i buy a house?
And the next question is to decide the legal status of that home you're buying. I assume you're not planning to get married before the home purchase. What if you break up with him? Who owns the house? Who has to make the mortgage payments? If he doesn't pay, you'll have to, right? Time to get all these issues straightened out is before you buy the house. And do it all in writing, with an attorney and witnesses.
Author: Todd w/mydenverlender
Posted: Mon Sep 12, 2005 3:56 pm
Post subject: Bad credit help
This website may be helpful to to you. I have no obligation to them, they are in my city (Denver) but could help you with a lot of the issues you have. www.veracitycredit.com
The Federal Fair Credit Reporting Act states that when a consumer disputes any information contained in his credit file, the credit bureau must verify the accuracy of such information with the creditor that reported the information within 30 days. If the credit bureau is unable to verify the information within 30 days, or the information is not 100% correct, it must be removed.
Taking advantage of this law is easy. Many creditors do not have the staff, or proper records, to verify this information within 30 days. Even when the negative information is correct, if the creditor misses the deadline, the credit bureau MUST remove the information. The laws are in your favor!
Some items are easier to remove than others. Research indicates that older items are much easier to dispute and remove. Creditors are less concerned with old accounts that they have charged off or retired. Thus, they are less likely to spend the time and money to verify them. Usually, they will no longer even have access to your information, as it is probably filed away in some warehouse. Accounts that were once past due, but are now completely paid off are also easier.
Since the creditor has been paid, they are less concerned with verifying.
Difficult items are those that are currently in collection or currently past due. These items will be in the creditor's active files and easy for them to find. Not only is it easier for them to verify, the want to verify because they are still trying to get paid. Although it's always worth a try, we will avoid these items in our first round of disputes.
If you have any questions or would like information like what is presented here, please contact me via e-mail at todd.gehrke@ctxmort.com
Author: tb33
Posted: Mon Sep 12, 2005 6:21 pm
Post subject: I Have Bad Credit, Can i buy a house?
Thanks Todd. Great Advice!
Author: nixuzer
Posted: Mon Sep 12, 2005 11:16 pm
Post subject: Re: First Time Home Buyer
kemmyj wrote:
..snip..
My credit is from debt that i incurred as a young stupid undergrad and have not paid off. The statue of limitations is almost up on most of the debt (I am 26 and he is 27). I have about $5000 in bad credit card debt. My score is about 569. I just bought a new car for the first time and have been making my payments of time. He has no bad debt, but has some late payments on his car note. The main problem is we know NOTHING about the home buying process and are scared to pursuit it because of the debt. What should be the first step for us? Who should we go see first to see what we can do to qualify for a loan? Is it the mortgage lender, a realtor, a counselor, or whom? I am not opposed to waiting another 2 years if it will save us a lot of interest. We just need to know who to turn to first to start the process. Thank you."
You don't state what % of your income goes to housing (a solution if you don't feel comfortable giving away your income figured) and what your overall debt situation is. Polonius brings up a good point about what if things don't work out and who the responsibility will go to. Also, you mentioned he had a couple of late payments, if those are due to financial stress then I'd encourage you two to work that out before you proceed with purchasing a house...your expenses usually go up. You'll want to do work on the house, etc, etc. As Ira mentioned make sure to see a professional and if you get any bad feeling or bad vibes walk away and seek someone else.
Author: kemmyj
Posted: Thu Sep 15, 2005 4:42 pm
Post subject: I Have Bad Credit, Can i buy a house?
I guess I should have been more clear. My boyfriend and I are getting married before we buy the house. We have been together for 12 years so this is not some average joe. thanks so much for the help.
Author: BestMortgageInfo
Posted: Fri Sep 16, 2005 4:14 pm
Post subject: I Have Bad Credit, Can i buy a house?
To reply to the first post. Most realtors will not want to take any time with you unless you are qualified or approved for a loan. So, maybe talk with a realtor and ask them to direct you to a lender or loan officer that can help you.
With scores under 580 (from MyFico or from a mortgage person) most LO's don't know what to do or where to go, but you can find someone if you look and make a lot of calls, there are wholesale lenders that have 560+ programs for 100%, and some that have 95% programs for 545 and up.
So, it is possible now, but if you can at least get to the 580 mark, you will be better off.
One of the bad things in a way about the sub-prime market is that they will let you sort of over extend yourself, by approving a 50% DTI (debt to income ratio) loan. With rates rising, I would suggest that you either stay in the 45% or less, and/or pay the extra fee and get a 30 year fixed.
Charles
Posted: Fri Sep 09, 2005 4:50 pm
Post subject: I Have Bad Credit, Can i buy a house?
my boyfriend and i are looking into buying our first home. we are renting now and the lease will expire in August of 2006. The problem is, we have bad credit. My credit is from debt that i incurred as a young stupid undergrad and have not paid off. The statue of limitations is almost up on most of the debt (I am 26 and he is 27). I have about $5000 in bad credit card debt. My score is about 569. I just bought a new car for the first time and have been making my payments of time. He has no bad debt, but has some late payments on his car note. The main problem is we know NOTHING about the home buying process and are scared to pursuit it because of the debt. What should be the first step for us? Who should we go see first to see what we can do to qualify for a loan? Is it the mortgage lender, a realtor, a counselor, or whom? I am not opposed to waiting another 2 years if it will save us a lot of interest. We just need to know who to turn to first to start the process. Thank you."
Author: tb33
Posted: Sat Sep 10, 2005 4:23 pm
Post subject: I Have Bad Credit, Can i buy a house?
Good qustion! I'm look for the exact order of the home buying process myself.
Author: Ira
Posted: Sat Sep 10, 2005 11:21 pm
Post subject: I Have Bad Credit, Can i buy a house?
he first thing you should do is discuss your situation with a professional realtor. They've seen it all, many times over, and can advise you how to proceed. Remember, it is in their best interest to see you succeed. If you can't get financing, they can't earn a commission.
Ira
Author: polonius
Posted: Sun Sep 11, 2005 10:22 am
Post subject: I Have Bad Credit, Can i buy a house?
And the next question is to decide the legal status of that home you're buying. I assume you're not planning to get married before the home purchase. What if you break up with him? Who owns the house? Who has to make the mortgage payments? If he doesn't pay, you'll have to, right? Time to get all these issues straightened out is before you buy the house. And do it all in writing, with an attorney and witnesses.
Author: Todd w/mydenverlender
Posted: Mon Sep 12, 2005 3:56 pm
Post subject: Bad credit help
This website may be helpful to to you. I have no obligation to them, they are in my city (Denver) but could help you with a lot of the issues you have. www.veracitycredit.com
The Federal Fair Credit Reporting Act states that when a consumer disputes any information contained in his credit file, the credit bureau must verify the accuracy of such information with the creditor that reported the information within 30 days. If the credit bureau is unable to verify the information within 30 days, or the information is not 100% correct, it must be removed.
Taking advantage of this law is easy. Many creditors do not have the staff, or proper records, to verify this information within 30 days. Even when the negative information is correct, if the creditor misses the deadline, the credit bureau MUST remove the information. The laws are in your favor!
Some items are easier to remove than others. Research indicates that older items are much easier to dispute and remove. Creditors are less concerned with old accounts that they have charged off or retired. Thus, they are less likely to spend the time and money to verify them. Usually, they will no longer even have access to your information, as it is probably filed away in some warehouse. Accounts that were once past due, but are now completely paid off are also easier.
Since the creditor has been paid, they are less concerned with verifying.
Difficult items are those that are currently in collection or currently past due. These items will be in the creditor's active files and easy for them to find. Not only is it easier for them to verify, the want to verify because they are still trying to get paid. Although it's always worth a try, we will avoid these items in our first round of disputes.
If you have any questions or would like information like what is presented here, please contact me via e-mail at todd.gehrke@ctxmort.com
Author: tb33
Posted: Mon Sep 12, 2005 6:21 pm
Post subject: I Have Bad Credit, Can i buy a house?
Thanks Todd. Great Advice!
Author: nixuzer
Posted: Mon Sep 12, 2005 11:16 pm
Post subject: Re: First Time Home Buyer
kemmyj wrote:
..snip..
My credit is from debt that i incurred as a young stupid undergrad and have not paid off. The statue of limitations is almost up on most of the debt (I am 26 and he is 27). I have about $5000 in bad credit card debt. My score is about 569. I just bought a new car for the first time and have been making my payments of time. He has no bad debt, but has some late payments on his car note. The main problem is we know NOTHING about the home buying process and are scared to pursuit it because of the debt. What should be the first step for us? Who should we go see first to see what we can do to qualify for a loan? Is it the mortgage lender, a realtor, a counselor, or whom? I am not opposed to waiting another 2 years if it will save us a lot of interest. We just need to know who to turn to first to start the process. Thank you."
You don't state what % of your income goes to housing (a solution if you don't feel comfortable giving away your income figured) and what your overall debt situation is. Polonius brings up a good point about what if things don't work out and who the responsibility will go to. Also, you mentioned he had a couple of late payments, if those are due to financial stress then I'd encourage you two to work that out before you proceed with purchasing a house...your expenses usually go up. You'll want to do work on the house, etc, etc. As Ira mentioned make sure to see a professional and if you get any bad feeling or bad vibes walk away and seek someone else.
Author: kemmyj
Posted: Thu Sep 15, 2005 4:42 pm
Post subject: I Have Bad Credit, Can i buy a house?
I guess I should have been more clear. My boyfriend and I are getting married before we buy the house. We have been together for 12 years so this is not some average joe. thanks so much for the help.
Author: BestMortgageInfo
Posted: Fri Sep 16, 2005 4:14 pm
Post subject: I Have Bad Credit, Can i buy a house?
To reply to the first post. Most realtors will not want to take any time with you unless you are qualified or approved for a loan. So, maybe talk with a realtor and ask them to direct you to a lender or loan officer that can help you.
With scores under 580 (from MyFico or from a mortgage person) most LO's don't know what to do or where to go, but you can find someone if you look and make a lot of calls, there are wholesale lenders that have 560+ programs for 100%, and some that have 95% programs for 545 and up.
So, it is possible now, but if you can at least get to the 580 mark, you will be better off.
One of the bad things in a way about the sub-prime market is that they will let you sort of over extend yourself, by approving a 50% DTI (debt to income ratio) loan. With rates rising, I would suggest that you either stay in the 45% or less, and/or pay the extra fee and get a 30 year fixed.
Charles
posted by CardRatings.com at 12:29 PM
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