I'm looking to purchase a town house in NJ. I know my credit is not that great. Should i wait or do i have a chance of getting a mortgage where my total bill will be less than 1400/month.
2007-02-02 13:50:23 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
My attitude about real estate is a little different than most of my colleagues. I have a saying I go by since learning it from a guy a long time ago "buy real estate and wait, don't wait to buy real estate. They will be screaming the "Sky is falling" for ever and still be looking for a reason not to buy real estate.
About the interest rate. With a 558 you are not exactly going to set the real estate lenders on fire and yes your rate will be a little higher than you would expect. The good thing about the interest rate no matter how high or how low it is it is tax deductable on your federal income tax.
Pay some of your bills down, make sure you pay your mortgage on time, at least for a year. After the year is up call your mortgage company and see if they will refinance you with a lower rate, thus lowering your payment. If they won't or can't do it call another mortgage broker to get this transaction done for you.
All banks just about offer the same products and loan programs with the different qualifications in each of their programs.
Your interest rate is based on your credit score and how well you have paid your consumer debt over time.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home.
In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
I this has been of some use to you, good luck
"FIGHT ON"
.
2007-02-02 14:31:09 · answer #1 · answered by Skip 6 · 0⤊ 0⤋
While your credit score is a little low, and you will likely have to pay a higher interest rate to obtain a loan, I would definitely suggest you try to get that loan and purchase your own property. At 80,000 a year you really need to be building equity in a townhouse or condo and gaining the tax benefits of deducting the mortgage interest and property taxes. The tax savings benefits while building equity will more than offset an extra 3/4 to 1 point on your home loan.
2007-02-02 14:02:27 · answer #2 · answered by KingGeorge 5 · 0⤊ 0⤋
558 says you are very delinquent with $$ so any lender will most likely charge you very high % rate . . .
And because your total debt to income ratio is suppose to be way under 40%, you will have problems.
558 says you already have lots of debt so you will probably only qualify for maybe $150K on a loan .
But with 558 , you are wasting time here because only a qualified loan office can do a legit estimation (pre-qualification) for you. They have to see your actual credit report to know what your current debt load is.
2007-02-02 14:03:01 · answer #3 · answered by kate 7 · 0⤊ 0⤋
That depends on how much your home is. Honestly, your income is good but your credit sux. You will get a loan. It just will be higher. It comes down to the price of the unit you are looking to buy. Speak to mortgage brokers and see if they will work with you.
2007-02-02 14:41:43 · answer #4 · answered by Kenneth C 6 · 0⤊ 0⤋
That is a poor score. There are lenders who will help those with poor credit. It really depends of what the poor credit is attributed to.
http://search.yahoo.com/search?p=mortgage+lenders+for+bad+credit+folks&ei=UTF-8&xargs=0&pstart=1&fr=ytff1-msgff&b=11
2007-02-02 13:57:59 · answer #5 · answered by rrrevils 6 · 0⤊ 0⤋
I think you should try to improve your credit score first.
I'm sure you can get the loan, but you will be paying through the roof on interest because of your score!
2007-02-02 13:55:45 · answer #6 · answered by BMW BFD 5 · 0⤊ 0⤋
WELL IT DEPENDS, WERE YOU TRYING TO PUT A DOWN PAYMENT OR DO 100% FINANCING? IF YOU PUT A DOWN PAYMENT YOUR CHANCES ARE BETTER...OR YOU CAN CONTACT ME AND I'D LET YOU KNOW EXACTLY WHAT YOU CAN DO TO BOOST YOUR SCORE UP. JOSEPHCODNER@YAHOO.COM
2007-02-02 14:23:39 · answer #7 · answered by josephcodner 2 · 0⤊ 0⤋
I get a lot of good info from http://www.AidFinancial.net
Good luck with your stuff!!!
2007-02-02 13:57:16 · answer #8 · answered by Anonymous · 0⤊ 0⤋