U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 05-06-2015, 01:55 PM
 
667 posts, read 1,025,914 times
Reputation: 446

Advertisements

Hi,
For those of you who are experienced with homebuying, hopefully you can help me. I am still very confused by the homebuying process. I would be a first time homebuyer and am trying to decipher the best path to home ownership with the least out of pocket costs and the fastest way BUT I have to increase my credit scores. My questions are:

1. What is your advice on improving scores quickly? I already pay on time. Would you pay any companies to do it?
2. FHA vs. Navy Federal LTV 100% financing loan. Which one is the better option?

Right now, I have the following options:

1. Work with a non-profit organization on becoming a homeowner (they're really slow though)
2. Work with broker and his guy that will help me with credit issues for a fee. (I am leery)
3. Work with Navy Federal via their Realty Choice program for 1st time homebuyers.
4. Work directly with the builder to get assistance with credit clean up and loan approval.

My credit is the one thing that has me completely stumped here mainly due to medical bills and credit cards being beyond 30% of their balances, which I am working on reducing. Not sure who can really help me the fastest and most effectively. Thanks in advance for any helpful advice!
Reply With Quote Quick reply to this message

 
Old 05-06-2015, 02:39 PM
 
Location: Phoenix, AZ > Raleigh, NC
14,301 posts, read 17,505,128 times
Reputation: 22132
I'm no expert on bad credit. But #2 is totally BS. Don't pay anyone a fee for helping you with your credit! And that nice broker who is going to refer you to somebody - dump him, remove his email and phone number and name from all contact lists and memory banks in your brain. It's all a scam.

#1 might be a good idea as long as they do not charge you a fee or do not want access to your bank account. Don't let anybody have access to your bank account.

Were I you, I'd forget about buying a house until you get the credit scores fixed, save up for a down payment, and save up for an emergency fund. Just erase that idea from your brain until then. You need time to straighten out your life (both psychologically and financially) before you do something foolish and make this worse.

Here's some articles from reasonably reliable sites for you to read.

7 Simple Ways to Improve Your Credit Score | Bankrate.com
Improve Credit Score: Tips to Fix Poor Credit & Raise Your FICO Score
https://www.consumer.ftc.gov/article...-help-yourself

And when you've got the credit and debt thing fixed, start reading some books from the library to educate yourself about buying a home.

I don't often recommend him because I think he's a zealot, but it does sound like you might be a good candidate for Dave Ramsey.
Reply With Quote Quick reply to this message
 
Old 05-06-2015, 04:08 PM
 
667 posts, read 1,025,914 times
Reputation: 446
Thanks very much for your feedback JKgourmet, I really REALLY appreciate it. I did take a homebuyers class through the non profit last year but the credit and mortgage piece is still fuzzy for me. I am going to take your advice and read up more to better understand the different products and what they all mean. And no the non-profit does not have any access to my bank account!

[quote=Jkgourmet;39512660]I'm no expert on bad credit. But #2 is totally BS. Don't pay anyone a fee for helping you with your credit! And that nice broker who is going to refer you to somebody - dump him, remove his email and phone number and name from all contact lists and memory banks in your brain. It's all a scam.
Reply With Quote Quick reply to this message
 
Old 05-07-2015, 04:54 PM
 
Location: New York
2,251 posts, read 4,161,942 times
Reputation: 1607
.

My $00.02 -

Normally I am a big credit advocate. I'm fishing with you mentioning Navy Federal Credit Union, are you ex military?

  • If so look into VA mortgage that doesn't look at the actual score, it will consider any unpaid accounts and your debt to income ratio (called DTI).
  • If not ex military - focus of getting your credit up as discussed above....
Good Luck


.

Last edited by Modification Specialist; 05-07-2015 at 05:28 PM..
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top