we have bad credit but are currently working on it, should we get preapproved for a loan then go house shopping or find a house and then try to get a loan...considering we have bad credit i think we should get preaprroved first, also we live in pennsylvania anybody know any loan officers that could help us. we make good money.
2006-11-11 06:09:30 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
you should get preapproved first... nothing worse than falling in love with the perfect house and getting turned down for a loan... you can try banks, but you can get better interest rates with Mortgage brokers/lenders. We actually started with our bank and then negotiated with another lender for the lower interest rate just before we went to settlement. We ended up with Chase Mortgage.
2006-11-11 06:13:49 · answer #1 · answered by tampico 6 · 0⤊ 0⤋
Clean up your credit. Check your credit score. There is not point looking at houses if you aren't preapproved. You'll just be wasting everyone's time and money. Also, if you can show a decent amount of time where you have paid your bills and worked on paying creditors you still have a good chance. What you should be looking for is a mortgage company that does its own underwriting. These are companies that look at the person and Make a DECISION. Most lenders plug your numbers into a equation and that's it. Mind you, do not go to a sub-prime lender. They will charge you a huge interest rate or try to get you to take out some ridiculous adjustable rate or interest-only mortgage. You want a 15 yr fixed mortgage. Otherwise, bide your time and pay your bills. Your time will come. It takes time to get into a financial mess. It will take time to get out.
2006-11-11 14:22:57 · answer #2 · answered by ontopofoldsmokie 6 · 0⤊ 0⤋
You may want to check out www.naca.com : theres no down payment, no closing cost and no application fees. You are guaranteed a 5.5% int rate. They work for the consumer not to benefit the mortgage industry. Although they look at your credit, your credit doesn't determine whether you get a home or not. Everyone is a given the same rate because they can't discriminate based on your credit. You have 10 steps to ownership and if you can prove you can pay the mortgage you can get a home. They make sure you get and are approved for a home you can afford. No matter how much you make: great or small. this is an excellent program.....you won't be disappointed.
2006-11-11 19:58:08 · answer #3 · answered by shaunte 2 · 0⤊ 0⤋
Before you go for pre-approval - which won't happen if your score is below 640 - you need to clear up your credit. Too many loans fall through at the end because the DTI - sorry, debt to income ratio - or some other foolery is all off. You need to fix stuff (or wait at least 60 days if you have paid the bad credit off), then apply for a home loan. This is the best way to get the best interest rates on a home loan.
2006-11-11 14:17:08 · answer #4 · answered by ValentineP 4 · 0⤊ 1⤋
It makes sense to go for preapproval first, especially if your credit isn't real good. That way you'll know where you stand, and won't be disappointed by looking, finding a house you love, then getting turned down.
If you're in the Pittsburgh area, Howard Hanna is a huge real estate company with many offices, many listings, and they handle getting your financing also.
Good luck.
2006-11-11 14:26:07 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
I think you'd be better off getting pre-approved first too. That way, you'll know what you have to work with. If you go to a good mortgage agent they'll pull your credit report and tell you what you need to get paid off in order to qualify. We were in pretty much the same boat a few years ago. We worked through Countrywide and they were great.
2006-11-11 14:17:22 · answer #6 · answered by faeriefolk_15 2 · 0⤊ 0⤋
Well I would call Washington Mutual, and see what they could do for you. They are really good to work with you. 1-866-926-8937
That is there phone number. Or there website : www.wamu.com Me and my husband have a mortgage loan with them. We really are pleased. Good luck
2006-11-11 14:18:04 · answer #7 · answered by babylove 2 · 0⤊ 0⤋
Pre-approval first. If you bank with a local bank go there first..they can see from your bank statements that you make good money and may be more willing to help....otherwise I have found GMAC Mortgage to be helpful .. go to this site and enter your zip code to find a local office..
http://www.gmacmortgage.com/
2006-11-11 14:21:51 · answer #8 · answered by MeInUSA 5 · 0⤊ 0⤋