We are debating if its a good time to buy a home right now. We don't have the moeny down for the closing costs but we are thinking of making an offer & asking the seller to help w/ that. The possible loan is through our bank & I'm just not really sure if 7.7% is good or not.
We have bad credit. Husband score is like 560 & I'm 650 but a stay at home mom.
2006-10-26 08:24:57 · 7 answers · asked by Lady in Pink 3 in Business & Finance ➔ Renting & Real Estate
Hi i work for a Mortgage company and the truth is that 7.7% isnt all that bad for the credit that you have right now. At this moment the market isnt too well and the truth is that while home values are decreasing the interest is rising. What you can do is shop around, sometimes using a mortgage company benefits people because they work with a wide number of banks and they can search for the bank that might give you the best interest rate. If you have found your dream home then i suggest you buy it but otherwise don't because the market is so uncertain right now that you are better off waiting to raise your credit score and get a better interest rate. Does your husband have a 560 because he has made late payments, or because he doesnt have enough history? If you make an effort to make all your payments on time your credit score should rise every three months. Also, dont let too many companies run your credit because your score goes down everytime your credit is ran. If you have any open lines of credit dont close them and dont max them out. If you use at least one major credit card for food and gas every month for six months and pay it off month to month(on time) your credit will rise and at the end of the six months you will have a better credit score. If you have any other questions feel free to call me at 1-866-609-4674 we are Regalia Mortgage Company and we work nationwide. Hope this helps you:) Adriana & Jessica Gutierrez
2006-10-27 13:17:10 · answer #1 · answered by prezgirl 1 · 0⤊ 0⤋
7.7% APR on bad credit doesn't sound like a bad deal. Although you are going through your bank... Banks typically only lend on their own products and don't have a wide selection of subprime loans to choose from. You should run your application and credit report by an experienced mortgage broker, and see what they have to say. At the very least, it will give you some perspective.
2006-10-26 08:42:16 · answer #2 · answered by Anonymous · 0⤊ 0⤋
That's pretty good considering the credit scores. If it's real, I'd run with it. A lot of times, unfortunately, mortgage companies tell you what you want to hear then can't deliver. It's very common. Just be sure to look over the loan papers carefully and make sure you're getting what you're promised. Here's a mortgage payment calculator so you can figure out what your payments should be:
http://www.robhenry.com/calc.htm
If they payments are off, ask a lot of questions.
2006-10-27 05:58:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's a good rate for your credit score. Make your payments on-time and try to refinance in 12 months.
By the way, DON'T get talked into an ARM mortgage unless you want to be homeless in about 5 years.
2006-10-26 08:33:30 · answer #4 · answered by 4999_Basque 6 · 1⤊ 0⤋
that rate is actually decent for a credit score of 560. your score doesn't count as much since you don't generate any income.
as your husband's credit score goes up, you can always refinace the loan to a lower rate if you qualify.
go for it!
2006-10-26 08:32:17 · answer #5 · answered by loveholio 5 · 0⤊ 0⤋
With your credit scores, you'll be lucky to get an interest rate that low.
2006-10-26 08:28:56 · answer #6 · answered by Anonymous · 0⤊ 0⤋
not horrible. I just got preapproved for 6.24%
2006-10-26 08:27:09 · answer #7 · answered by Anonymous 2 · 0⤊ 0⤋