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| *Loan,banking and credit>>>credit repair |
What are the ways in which one could repair their credit score, so that they may buy their first home? |
I have had a lot of stupid things which have ruined my credit, mostly medical bills, and I know my credit is really pretty horrible. I have a family, and I have the money to put down get into my first home. To Whom and where could I go to actually go about buying my first home, and would I need to repair my credit beforehand? How would I go about doing that? Do a lot of places sell first homes and take a deposit only to those with bad credit situations? Get copies of all three of your credit reports, and shell out the extra to include your credit score. Go over each report and make sure your records match the data on your credit report. The accounts that are paid off are paid off, the accounts that are closed are closed, etc. Then go about paying off any outstanding debt you may have. This will go along way in not only repairing your credit, but will also increase your credit score, which is the number most lending companies base your loan on. As for a down payment on a house... no matter how bad your credit, EVERYONE wants a down payment. It makes you more creditable with lenders, and in turn, it also makes an impact on your monthly mortgage payment. The more you can afford to put down, the better off you are. Best of luck! The best way to "repair" your credit score is to pay your bills. If those medical bills are not paid, then pay them. There are alot of mortgage lenders who specialize in lending to people with less than perfect credit. You will probably have a higher interest rate because of that, but if you pay your payments on time, you will probably be able to refinance at a lower rate. Talking to a real estate agent will help, they should be able to give you several different lenders. Actually if you do a yahoo search on mortgage for bad credit, you'll find some then. Some mortgage lenders may require you to have all your outstanding debts paid... Good luck! Repairing your credit score is not as impossible as it sounds. First of all, settle any and all debts-if you are desperately behind, call the companies and quite simply ask if there is some way you can discuss settling the account, because you want to pay it off, but cannot keep up with the payments. Secondly, once you start this journey, do NOT be late with payments. Creditors do not generally report late payments to your credit report unless they are 60+ days late, but you don't want to rack up late fees and look irresponsible. DO NOT, I repeat, DO NOT close your oldest accounts once you have them settled. Older credit looks better than newer credit, as long as it is in good standing. Closing old accounts makes it look like you are brand new to credit cards, and that is not desirable to creditors. Pay it off or down, and ask for a lower interest rate. Don't ask them to lower the limit-you want to have a decent amount of unused, available credit. For example, if you have a card with a ten thousand dollar limit, and you pay it down to 1,000 dollars, creditors see that you have 9,000 dollars of available credit on that card. Looks good. But if you pay it down to a thousand, and ask to have the limit cut to 5,000, you then only show 4,000 dollars in available unused credit. Not as desirable. Sorry for the wordiness, but I have been here, and I have experience in this. Good luck to you! Anything that is in collections that isn't a medical bill would need to be paid off. After doing that you should be able to qualify for any number of loans. You didn't mention the price range or amount you were looking to put down but, a down payment of 3 -10% will get you into your first home under FHA guidelines. One thing I must tell you...... Keep your outstanding debt (credit cards, store cards, auto loans) to a minimum. Most mortgage banks will have a program that will be able to meet your needs. If you have any other questions please write me @ mdesdunes@sicloans.com 10 yrs Mortgage Banker Find a mortgae broker in your area (an Agent can help) and they will help you repair your credit quickly. They know what their lenders look at. |
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