I have a credit score of 557, but just was approved for a new truck. Am I able to get a home loan?
2006-06-28 08:30:00 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
Chances are no. If you took the truck loan, no other bank will want to give you any more money since you now have outstanding debt.
If you didn't take the truck loan (but was approved for it), than yes you should be able to get at least one bank to give you a mortgage. It depends on how large of a loan you're looking for, and how much money you have to put down. Sorry for the vague answer!
2006-06-28 08:35:20 · answer #1 · answered by vinnyvino 3 · 7⤊ 0⤋
There are other factors to consider, besides credit. Job time of 2 years, collections on credit report - judgements on credit report. All of these are taken in as a factor on getting a home loan. Credit can be worked on, by adding alternative credit. If you are paying regularly on a cell phone, auto insurance, rent, etc - these are called alternative credit.. All is not HOPELESS - ok - take a deep breath. If your credit score is 500 or higher, anything is workable, with a seller second - etc the higher the credit score the better. Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.....They are not so much looking a credit - but the other factors are taken into consideration. With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true.... Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information.
ALSO - - Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - It greatly depends if you need help with closing cost, if you have money to bring into the table - so you do not have to borrow the full 100 percent. Rates are still in the 6's but they are getting higher - ok. If your credit is in the 500's to low 600's than the rate would be higher - lots of factors to consider. Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out. Some companies want you to escrow you taxes and insurance. Other's may not require it...Some companies add a .25 to the interest rate if you want to escrow waver...FHA loans have to escrow (at least they used to)
2006-06-28 08:35:41 · answer #2 · answered by W. E 5 · 0⤊ 0⤋
There will always be someone who will give you a home loan.... You may not get the best rate, but you will definately be able to get one
2006-06-28 08:34:43 · answer #3 · answered by tarotfaery 2 · 0⤊ 0⤋
557 is low, but I can help you reach your goal. E-mail me and I will give you the details.
2006-06-28 08:34:26 · answer #4 · answered by alpha & omega 6 · 0⤊ 0⤋
I'm a financial credit consultant. I can help to improve your credit score. Check out my webpage:
www.ercredit.com
or call toll free: 1-888-830-7991
2006-06-28 10:50:12 · answer #5 · answered by drunkenoldman 1 · 0⤊ 0⤋
All depending on your debt to income ratio and amount of your down payent, you could qualify for a mortgage.
2006-06-28 08:34:56 · answer #6 · answered by aa 2 · 0⤊ 0⤋