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buying a home with not so good credit

3 replies

threeangels · 05/04/2002 20:24

I was just wondering if anyone has ever been able to buy a home with really bad credit or even with a fresh bankruptsy. My husband and I have been struggling for the past few years with our finances. I had to quit my job because I became pregnant. My husband is in school so he couldnt work another job because of this we totally messed up our credit. Several people told me if we kept our credit clean for a year or two straight with the same job then we could probally get a house. We might have to pay a higher interest rate. I have been kind of sad because I dont want to file but we really have no choice right now. I would really love to get a home . Thanks for any imput

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Kia · 05/04/2002 22:43

Number 1 - if you haven't already done it get a copy of your credit reference files (and your husbands) from the 2 main companies - Experian and Equifax. (just put them in google and you'll get their web pages) Then you will see what companies/banks etc will be referring to when you go for a mortgage or any kind of loan. There may be things on it that you can change that are incorrect or even belong to someone else entirely! etc etc. However, just because you have things on your file doesn't automatically mean that you will not get credit. You have to have a record that they can check, so pay your utility bills by direct debit, get a store card and pay the bill off regularly. Get a credit history in fact. You have to show that you can manage your money and this is what they are looking for. That being said, noone has to lend you money if they don't want to. Dont be afraid to ask the reasons why if you get turned down, there may be something you can do about it. The bank or lender may say well if you do something about this or that, we will re-consider. I often deal with these kinds of things in my job and we have asked the banks what the problems are and sometimes people have horrendous credit history but have no problems getting loans and yet others can't get a penny and they say its whether you have a credit history they can check or not. Hope this helps. Cheer up.

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robinw · 06/04/2002 12:53

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JoAnne427 · 06/04/2002 13:22

I do have some friends that have purchased with not so good credit. Bankruptcies are tough - as RobinW says, see what you can do to make arrangements on your bills - as little as possible a month to keep your accounts from being judgements against you while you both get your job/financial situation in order. Did you mention elsewhere that you live in Virginia? I am in Connecticut, and the state provides a service to get you back on track - I am sure VA has that also...

Mortgage companies definitely look for two or more years at a job - I just bought in January, and we rushed it through as I knew I would be losing my job fairly soon, and didn't want to wait two more years to qualify...this may not be written in stone, but it seemed important when I applied for my mortgage.

And when the time comes, you may want to go to a mortgage broker rather than a bank - they can be more creative and pull from more resources - however, beware of their charges! Make sure you get an agreement up front on what the fee will be, and get an attorney to help you with it if you don't feel confident with the paperwork...

And good luck with everything! It sounds like you have a lot on your plate these days...

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