My credit isn't so great but my rent is really high so I reckon I'd be better off with a mortgage...?

Question

...can anyone advise me on companies that will take me? Considering the price of houses I would need a fair amount and I could get a deposit although nothing great!!! Help!!!

I make quite good money, as I've just got my degree!!!

Answer 1

Actually your first step should be to start ceaning your credit and bring your score up.There are companies that help do this.Hubby's credit was really bad like low 500's but we had a credit cleaning company help us dispute and clear off most of the things that was preventing him from getting a house.After 5 months his score went to the low 600's.He ended up paying off some of the smaller debts and had them report them as paid and cleared off his score.It takes some time yes but it's well worth it the higher your score the better the house you can buy and the more companies that will help and accept you as a client.

Hope this helps you....

M.Gard

P.S
We went through a real estate agent and she helped us to locate a mortgage company that would accept our credit and gave us a good deal for what our score was at that time:)

Answer 2

Listen, if your score is atleast in the high 500's you can get qualified for a mortgage considering a few more things.... for instance... you need to have been on your job for atleast 2 years ( sometimes one year is acceptable depending on the lender) Do not go crazy getting your credit pulled to do this though because it will loweer your score the more it gets pulled. ( viewed.) To prepare for getting a mortgage do the following.....
get letters from places you already pay monthly like your fuel company. telephone company, cable et cetera. believe it or not, paying these on time every month consistently will help you when you go before a lender. If you have a car payment I would hope it is current and has been for atleast a year. Also, you want to consider what type of loan you want and ow much you can afford without strapping yourself. Do not get in over your head!! Not renting also means you will need to be responsible for any repairs needed in and around the home. If you think that will be too much consider looking at condos where a portion of your payment goes to such things when needed. I would suggest finding a local real estate agent or broker you feel comfortable with and give them your scenario. They will know of all the lenders in your area that do work with people who have lesser credit scores. Your agent will be of the most use to you in the whole process. I highly suggest you go with an agent who is a member of the Borad of Realtors since they must and do regard a higher ethical standard which is very important in the transactions you will be doing.
As far as your down payment, there are some ways to get into a home with very little or even no down payment. It all depends on the property, who is selling it and the type of loan you are qualified for. But do not count on putting nothing down. I would suggest saving as money as you can to put down. You may be eligible for a HUD home or even a first time home buyer's loan. This is all dependent on your situation and history too.
I highly suggest that prior to doing anything you get a free copy of your credit report (freecreditreport.com) and see for yourself where you stand. If you have ANY outstanding debts I suggest you take care of them first PRIOR to doing anythign else. Otherwise a lender will frown upon outstanding/past due debts. Don't let that part scare you. You can make arrangements with debtors and sometimes either lower your monthly payment or lower what you owe if you are able to do a pay off within a certain amount of time. ( but there's no point in lowering the monthly payment if you want to get the bill paid off... I say this only if you can't afford to get everyone paid off sooner.)
Best wishes.

Answer 3

You say your rent is high, but considering the price of houses you would need a fair amount. You need to evaluate your monthly expenses (rent, utilities, student loans, food, entertainment, etc.). From there you can determine what you can afford. The rule of thumb is your housing expenses (insurance, PMI) should not exceed 28% of your monthly income, but varies from person to person. I suggest you save at least 5% for a down payment. Put your money into an online high-yield savings account (Emigrant Direct and HSBC Direct are at 5.05%). Being a first time home buyer, there are also programs available with lower interest rates. Another tip, keep renting for the next 6 months, but put the difference between what a mortgage payment and your current rent would be into a savings account. If you feel pinched, then you can't afford it, but if everything is comfortable then you should be ready for the next steps. Also, waiting another 6 months will give you time for your credit score to increase.

Answer 4

If you are from the UK, try northern Rock, my credit wasnt too great but northern rock loan 4 x your yearly income(didnt need that much) so you can buy property without fronting up the 5% usually required plus they have very good rates go see a mortgage broker for proffesional advice, they usually find best deal but try to stay away from their insurance as they say its best deal but usually not, the insurance is where the brokers make good commission and they are binding for a full year... any way hope this helps a little

Answer 5

Well if this is your first home purchase, in my experience first time mortgages are fairly easy to secure. As long as you have a good work history with good amount of time in the job you have now, any bank should be able to approve with little money down, would be better if you had a co signer as well. Most banks like to loan first time home because the likely of foreclosure is great and they can make more money on that. If you get "pre-approved " and buy a home, make sure you beat the odds and never for-close.

Answer 6

go to an independant mortgage brokers at most estate agents and self certificate.u normally need 10 % deposit which you can get on a loan.Only difference is if your rent is high you could apply to your local council for housing benefit and they will subsidise these high rip off rents. Once you have bought they will reposese if you cant pay . be careful .all the best

Answer 7

Everyone would be better off with a mortgage instead of paying rent. However, the possibilty of qualifying is greatly influenced by your credit score.

Answer 8

Have you looked at your credit report to see if there is anything that needs corrected? I found numerous incorrect entries a few years ago that gave me a 40 point jump.

Email me at funkninja yahoo.com for other tips. I can help get your score raised which will give you access to better loans.

Answer 9

Just a thought but if your rent is so high would you qualify for housing bebefit? Or have you thought of applying to the council for a fair rent assessment?

Answer 10

I don't have the answer but I am intrigued by any answers you may receive on this. I would like to buy as well and am in the same boat as you.
Good luck and I hope you get some good info.