My credit score is in the late 500s, fiances is in the early 600s and I have about 30% of the total value in the bank. Do you think it's likely to be approved for the loan if you're borrowing a small amount of $10k?
*My father is pushing me to buy this starter home. He says it's a great investment and I'd make my $ back by renting it out if I decide to move away in the spring (graduation).
2006-08-06 17:48:18 · 4 answers · asked by PlasticTrees 2 in Business & Finance ➔ Other - Business & Finance
$10k sounds more like a home improvement loan rather than a home loan... be prepared to have your home serve as collateral.
2006-08-06 17:59:29 · answer #1 · answered by Mike S 7 · 0⤊ 0⤋
DO NOT BUY A HOUSE NOW!!! Your life is not stable right now...Your credit score stinks...and so does your Fiances...You are engaged to be married...and you will be graduating in the spring?!?! You should NOT buy a house unless you intend to live in it for at least 5 years...And then IF you have to borrow to buy it, you take out a 15 year FIXED rate mortgage where your TOTAL payment is less than 25% of your Take Home pay!
You should DEFINITELY not be buying property to use as a rental house at this stage of your life. Heck...If Pops thinks it is such a great deal maybe HE should buy it and Rent it to you for awhile untill you figure out where in life you want to live and what you want to do with your life and with whom! Also, DO NOT buy property with your Fiance...You are NOT married yet...what happens if you buy a house together and then by Christmas you are split up? What happens to the house? You have to sell it at a loss and fight over the money thats what...
Just Relax a bit...Dont worry too much about your Credit Score...just finish school...Get Married if you want...Get established in your career...Pay your bills on time and your score will improve over time. There is nothing wrong with being a Renter in life...In many cases it is far cheaper than owning property. Ownership involves RISK and you have your plate plenty full at this point the way it sounds...Good Luck!
You might want to read the book 'The Total Money Makeover' by Dave Ramsey. It will help you learn how to handle money and make some of these decisions.
2006-08-06 18:03:49 · answer #2 · answered by FreedomLover 5 · 0⤊ 0⤋
That would be a huge plus; they're also going to look at your income.
2006-08-06 17:53:58 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I found some good info here.
2006-08-06 20:37:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋