So we went to look at a condo today and fell in love with it! We are wanting to move around June or July (next summer). We know that we can more than afford it. They are asking around 150,000 and our combined income for a month is around 100,000. We have little debt which consists of a car payment, a student loan payment, a credit card with a balance of $500 and a loan payment for a bed that I purchased. Our concern is our credit. It is not perfect due to late payments in our past. The realtor says that it is a buyers market and mortage companies will compete more for customers due to it being a buyers market. Any suggestions?
2006-11-12 15:42:33 · 3 answers · asked by Anonymous in Business & Finance ➔ Credit
First off...housing sales are indeed slow and lenders are going to be a little more accomodating....if you have a lower score, but your debt to income ratio is appealing....you'll have no problems getting approved, but your rate may be a bit higher.
Don't be afraid to shop around for a better deal.
The longer in the past the late pays are....the better for you.
Just make sure you don't make ANY late pays between now and next summer....that's plenty of time to show lenders you are back on the right track.
2006-11-12 17:13:51 · answer #1 · answered by markmywordz 5 · 0⤊ 0⤋
First, you may be able to improve you credit score a bit before you go for financing. Pull both credit reports and look for any opportunities to make some adjustments. Plenty of information is available, online and other sources, to help you improve you credit knowledge & credit score. Consider saving up for a larger downpayment so you can qualify for a better rate. Also you can look at the possibility of getting an adjustable rate mortgage with a lower up-front rate (not always the ideal situation-you must be very careful). Or you can consider buying-down your interest rate to offset a higher interest based on your credit profile. Not all of these stratergies are the best for all borrowers, but lt least a wide array of options to consider. Check with your realtor for referrals to good mortgage loan officers they have worked with successfully before.
2006-11-12 15:58:23 · answer #2 · answered by $$Cypher 2 · 0⤊ 0⤋
It's a buyer's market. First take a look at your neighbours, and see if you like to live with them. Find out how many children live next to you, there could be lots of noise.
2006-11-12 15:53:40 · answer #3 · answered by HSB 3 · 0⤊ 0⤋