i have extremely bad credit but have 25000 to put down on a 82 thousand dollar house what are my chances
2006-08-22 15:45:30 · 9 answers · asked by LOLO 3 in Business & Finance ➔ Renting & Real Estate
There are several options available for you. The first and foremost question is what are you considering bad credit?
With a 30% down payment there are many lenders who may extend you the funds. There are however several factors that can change that.
-Credit Score - There are lenders who will help you finance this home with a credit score down to 500
-Have you owned a home before - first time home buyers may qualify for discounted or below market rates providing they meet income and credit guidelines.
-Location - Where is the property located?
-Reserves - The amount of money you have in your bank account after buying the home.
-Income - Is it verifiable
You need to start by knowing what your credit scores are for all 3 of the credit bureaus (equifax, experian and trans union). This will give you a base to start shopping for financing.
As you are applying for financing you have 30 days to "shop" for a loan. During this time the credit inquires are not supposed to affect your score. This is not always the case.
I recommend you get you score from a site like myFICO.com and shop a few lenders first. Do not let them pull your credit. Send them a copy of your report if they need to see it. Most lenders can get you some estimates without pulling your credit.
Be careful of a lender quoting you a price a lot lower than the others.
Once you are ready to get into contract on your new home, you will need to have at least one of the lenders pull your credit so they can process your approval.
While you are shopping for your new home do not make major purchases or run up credit card debt. This can have a drastic effect on your score.
~Danke Schoen
2006-08-22 19:21:35 · answer #1 · answered by mrdankeschoen 2 · 0⤊ 0⤋
STOP - You need to find a better Loan Officer or Mortgage Broker. We use a one page business information form with our clients. We get the information about down payment, the price of the house address, and social security number and permission to check their credit. Within a day or so we will have a pretty good idea whether we have a lender that will fund the loan.
Another option is to hold off on buying that house for a couple of months you could do a lot to improve your credit. There are companies that can improve your credit, but you want find them on TV, in the newspaper or those signs beside the road. The work on word of mouth only because they have more clients than they can handle. I know of one.
If you have to go ahead with the purchase do not hand over any more than $1,000 until you see what the terms of the loan are going to be and any additional cost.
Do you know for sure that the house is worth $82,000
Please believe that most of us have bad credit and the lenders are fighting for people with bad credit.
$1,000 earnest money is plenty to start the process and the remainder at closing.
Also write in the contract that you have 14 days to secure acceptable financing.
Paul S.
2006-08-22 16:17:21 · answer #2 · answered by Paul S 3 · 0⤊ 0⤋
Good shot at getting a loan (ridiculously high interest rate) but not a good shot at keeping the home in the event of job layoff which means the bank gets the house and you are out by $25,000. Make sure you can save the amount of your mortgage payment (plus additional costs for water/sewer, taxes, etc.) for at least six months in a savings account without needing to touch that money.
2006-08-22 16:07:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It depends on the criteria the lender is looking for. If you have Very poor credit, you can get the loan, but will pay a hefty interest rate, because of the risk of default.
2006-08-22 16:08:51 · answer #4 · answered by Ms.loanofficer 2 · 0⤊ 0⤋
Yes!! you will ,if not from this lender from another. You will qualify for an equity mortgage with your down payment.Do yourself a favour - contact a mortgage broker ( they have access to many lenders) He or she will get this placed for you. Happy House !
2006-08-22 21:25:33 · answer #5 · answered by nature4me 3 · 0⤊ 0⤋
there is a big change ,that you will get your mortgage,but your credit score will be a big factor to. if your credit is really, really very bad- you can be in trouble.
2006-08-22 19:57:34 · answer #6 · answered by bianca 4 · 0⤊ 0⤋
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2006-08-22 16:46:37 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You may have to find someone to carry a 2nd.
2006-08-22 16:17:36 · answer #8 · answered by Anonymous · 0⤊ 0⤋
very good - if you are making income right now.
2006-08-22 15:49:19 · answer #9 · answered by Anonymous · 0⤊ 0⤋