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)
Closed Thread Start New Thread
 
Old 03-04-2009, 03:50 PM
 
169 posts, read 607,557 times
Reputation: 63

Advertisements

AS everyone else stated. WAIT WAIT WAIT. Save for a larger down payment, clean up your credit in the meantime - just rent for now. There is NOTHING wrong with renting. You will be a much better position financially (as well as have better credit) if you wait. The worse thing you could do is find some shady mortgage, get too much in debt and be in worse trouble then you are now. Please, please wait. It will get better...

 
Old 03-04-2009, 04:13 PM
 
596 posts, read 2,495,190 times
Reputation: 201
Mirela26, I applaude you for seeking out this forum and trying to find answers. You're smart and you're definitely moving in the right direction. I think you must be determined and I am sure you'll get your house. If not right away, soon!

I would not have said 575 was terrible, either. I think it takes surprisingly LITTLE to make a score go from 620 to 575, but it does take time for it to climb up.

Whoever said to comb through your report and make fixes where possible had a good idea. Maybe you have things that can be corrected! There is a forum for that: www.creditboards.com look for a link to their forums, and post for help there. I know alot of people that use them. If I'm not allowed to post this I apologize, I dont mean to do something wrong and will edit if necessary.
 
Old 03-04-2009, 08:39 PM
 
Location: Cary NC
553 posts, read 2,082,218 times
Reputation: 303
Quote:
Originally Posted by mirela26 View Post
hi...i have been reading through posts for the past 3 hours and can`t find anything similar to my situation...
me and my husband are trying to buy a home for the first time and had a local mortgage broker pull our credit to see what we qualify for only for her to give us a big speech about our credit and how important it is like we didn`t know...we both are young and had some bad descions reflect now on our credit...we have both a credit score of 575...she now told us that the lenders she works with only do fha loans now and they require a 620 credit score...told us bunch of bs about obtaining a secured credit card and spend half the limit per month and keep making a min payment each month...which isn`t really bs but i tought that she could get us some kind of idea what we could get approved for...my husband has a repo that is 5 years old but he is currently making monthly payments on it for about 2 years now...he also got a new car loan in sept that we are ahead with payments we`ve been making 2 payments per month -why i ask myself that now...she says it doesn`t show that on credit report it only shows balance and balance of that loan is still not 50% below loan...ok me-i have nothing major on mine besides i was in the national guard for 3 years and got an honorable discharge but the military wants their bonus back...which is 1800 and i`ve been writing to diff ppl to put me on some kind of payment plan noone ever responded...so now i disputed that myself on experian.com...my husband has a steady job income for 07 was 21000 and for 08 34000...anyone has any idea how to go about a first time homebuyer loan ...we only have about $5000 to put down if required...pls any help would be greatly appreciated...
Revolving credit (credit cards)should be at or below 50% of their limit. Car loans are considered Installment loans and having a balance over 50% does not impact your credit negatively.

Unfortunately you just missed the FHA loan that was available to you by about a week. FHA just changed the rules to 620 minimum credit score (FICO)

I would get all of that stuff cleaned up the best you can, find a loan person who is helpful not demeaning and buy your home later. There will be plenty of good deals for the next few years and it should only take you about 6 months to get it fixed.

If there is anything on your credit that is erroneous you can dispute it by writing to the credit bureaus. Once you dispute collections etc. the credit bureaus must either prove the debt exsists (many times they can't even if it is legitimate) or they have 30 days to remove it from your report as per FCRA (Fair Credit Reporting Act) http://www.ftc.gov/os/statutes/031224fcra.pdf
 
Old 03-05-2009, 05:33 AM
 
Location: Maine!
469 posts, read 1,632,170 times
Reputation: 319
Quote:
Originally Posted by jctx View Post
Mirela26, I applaude you for seeking out this forum and trying to find answers. You're smart and you're definitely moving in the right direction. I think you must be determined and I am sure you'll get your house. If not right away, soon!

I would not have said 575 was terrible, either. I think it takes surprisingly LITTLE to make a score go from 620 to 575, but it does take time for it to climb up.

Whoever said to comb through your report and make fixes where possible had a good idea. Maybe you have things that can be corrected! There is a forum for that: www.creditboards.com look for a link to their forums, and post for help there. I know alot of people that use them. If I'm not allowed to post this I apologize, I dont mean to do something wrong and will edit if necessary.
excellent advice has been given here on this thread. mirela, for your own sake and peace of mind, take the time to clean up your credit. it's work, but talk about the satisfaction when you've accomplished it. take it from me, i know from personal experience. we're in the process of buying our first home and while my spouse has excellent credit, mine was not the greatest--but it is a hell of a lot better than it was in the past. just talking with your creditors and going over your budget with a fine tooth comb AND cutting out unneccesary purchases and taking those funds and applying them to your debt will do wonders for your credit rating. be patient, it won't happen overnight, but you'll bump your rating up before you know it. and you'll finally be able to secure a mortgage with really decent rates. good luck!
 
Old 03-05-2009, 05:57 AM
 
34 posts, read 254,527 times
Reputation: 35
first of all thanks to everyone for the good advice...i already started cleaining some of that up by disputing some of the things...and i also posting on here found 2 ppl that actually still have lenders who work with our situations so we`ll see how that goes...but thank you guys so much
 
Old 03-06-2009, 10:43 PM
SKB
 
Location: WPB
901 posts, read 3,103,751 times
Reputation: 320
"hi...i have been reading through posts for the past 3 hours and can`t find anything similar to my situation."

Try reading for three years and while you are reading do some saving, start with 20% on your income each month.
Keep making extra car payments, with those credit scores I would dread to see what the interest rate is on that car note.

Stop being offended by what you read on this board, it is obvious to me that you have not done enough reading or learning as if you had you and hubby would not have sub-prime credit scores.
Just because you are young there is no excuse for it.

"i have nothing major on mine besides i was in the national guard for 3 years and got an honorable discharge but the military wants their bonus back...which is 1800 and i`ve been writing to diff ppl to put me on some kind of payment plan noone ever responded...so now i disputed that myself on experian.com."

What exactly are you disputing?
You had been given a signing bonus and you didn't meet the terms of the bonus and now it is a collection account on your report?
If you have 5k pay the 1800 back and start saving like I mentioned already.


Try reading:

The Millionaire Next Door by Thomas J. Stanley
The Richest Man in Babylon by George S. Clason

These two easy reading books will help you to understand why some people have money and others NEVER have any money.
Don't keep repeating the same mistakes that you have been doing at your young age or you will always be sub-prime and at the mercy of banks and bill collectors.

Be smart and start saving and spending wisely.

Stop being offended and take heed what others have tried to tell you.

Stop trying to find someone to give you the quick answers and easy solutions and start doing the hard work by sacrificing and WAITING until your situation is 100% right. There will always be loan sharks out there willing to lend to sub-primers at high interest rates and horrible loan conditions. Stop falling into that trap and take control of your life and future.
 
Old 03-07-2009, 08:16 AM
 
2 posts, read 8,278 times
Reputation: 11
Hi friends.... to buy a house in this market, you dont need banks, just a little money down. I can show you all the steps. It really doesnt matter what your crdit score is, as long as you income can be verified. I, know, last I've already done close to 90
 
Old 03-07-2009, 11:22 AM
 
540 posts, read 1,063,356 times
Reputation: 545
Go to the CreditBoards website and spend a good weekend reading through their forum. The single best option you have is getting negative items deleted from your credit score.

For instance, have an overdue credit card from a few years ago? If it's at a different address, dispute and get that old address removed from your credit file. Then dispute the bill itself.

Right now you should be focusing on paying your debts off. Get those taken care of. Save up for a down payment. Lenders will take you more seriously at that point.
 
Old 03-07-2009, 02:38 PM
 
34 posts, read 254,527 times
Reputation: 35
lol...it is amazing how many negative people we have these days...first of all SKB i wasn`t offended as to what others have replied as their opinion really doesn`t matter to me since he wasn`t helping out...second -u either don`t know how to read well or something else is wrong with you...i disputed my military charges from my credit report because i wrote to 3 different adresses for 5 months noone ever responded...i wrote them because i wanted to pay it off smarty not for any other reason...i only have one more charge off and that one is falling off next month so is my husbands and third off i don`t take being young as an excuse it just if i knew back then what i know now i would`ve made diff choices...and you negative people on here make no sense if you can`t help why the hell are you responding..i didn`t ask for your opinion--i asked those who have been in my situation or mortgage brokers who have lenders who work with ppl like us... i know i have to fix things in order to get a loan or a good interest rates but fixing things doesn`t happen overnite...neither does finding a home or getting approved by a lender...try reading a book>?pls go on you made no sense in your reply...and just for your info in the last couple of days i did find brokers that have lenders who work with our credit score and on top of all its an fha loan with a 6%interest rate...and even if i had 20000 on hand i would never put that DOWN on a home makes no sense to me...why? just so that in a couple of years those 20000 could go down the drain when my mortgage is upside down...my sister-in-law put down 15000 on a 156000 home and now her home is worth 100000...how did that down payment help her?>so thanks for your reply but just like i siad before if you cant help pls don`t reply...
 
Old 03-07-2009, 02:59 PM
 
264 posts, read 849,534 times
Reputation: 215
Quote:
Originally Posted by mirela26 View Post
and just for your info in the last couple of days i did find brokers that have lenders who work with our credit score and on top of all its an fha loan with a 6%interest rate..
A 6% interest rate is shockingly high compared to the national average. The national average is currently 5.2% according to bankrate, so I'm guessing you are paying a pretty hefty penalty for your current credit rating. In addition, FHA loans will require mortgage insurance premiums until you establish 20% equity (which may take a while if you don't put much down upfront). Count me as another person who thinks you should build up your credit score and settle your debts before jumping into the biggest purchase of your life. You should be able to get a better interest rate and save up for enough of a downpayment to avoid mortgage insurance.

Quote:
.and even if i had 20000 on hand i would never put that DOWN on a home makes no sense to me...why? just so that in a couple of years those 20000 could go down the drain when my mortgage is upside down...my sister-in-law put down 15000 on a 156000 home and now her home is worth 100000...how did that down payment help her?>so thanks for your reply but just like i siad before if you cant help pls don`t reply...
If this is how you feel, then why on earth are you buying a house in the first place? It sounds like you don't want to put down a lot of money because you are planning to walk away from your mortgage if your house loses value (which you seem to think is a given)? If you are planning to stay in this house for the long haul (and you should expect to be in it for the long haul if you are buying in this market), then you should be putting down as much as you reasonably can. If you can get 20%, you will get rid of the mortgage insurance requirements and the total cost of the loan will be less (I assume you understand the basic concepts of the time value of money).

Unless your sister-in-law is going to lose her home, then the amount of her downpayment (which was not very much at under 10%) has nothing to do with her current situation. Assuming she's staying in her home, a smaller downpayment would have put her in much worse shape than she's currently in. The decline of her home value has nothing to do with how much she originally put down.

And finally, you asked for advice on a public message board. Don't get upset when people give you their honest opinion. It may not be what you want to hear, but most people on this thread have given you good advice.
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.


Closed Thread

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