What are the chances of getting approved for a loan to buy a house with a credit score of 597? just curious, thanks.
2007-02-20 02:28:27 · 9 answers · asked by domsmom701 3 in Business & Finance ➔ Renting & Real Estate
You can always find someone willing to loan you money. The catch is, the worse your credit is, the worse the terms are. With a lower credit score, you will probably see higher rates and a lot of companies only wanting to do ARMs.
If you have time to work on your credit score before you get the house, then I would suggest doing that. Go to your bank and talk to someone there about what they would suggest for you to get your credit repaired. Try to not go to the credit repair companies you see advertised in the paper and online. A lot of those are scams. The people at the bank probably are not going to scam you.
Also, the amount you have for down payment is a factor. If you have little or no down payment then it makes things a bit harder. So, try to save up some money. $20 a week will give you over a $1000 in a year. Not much, I know, but it is at least a start.
Finally, check out HUD. They have programs and also have links to programs in your state that offer mortgages designed to help you out if you have bad credit.
http://www.hud.gov/
597 is not the worst credit out there. It is enough, though, to disqualify you from some prime lenders. However, you are not too deep to get yourself out. Give it a little time, energy, and research and you can do it.
2007-02-20 02:37:41 · answer #1 · answered by A.Mercer 7 · 0⤊ 0⤋
Depends on your income,down payment, and the reasons your score is 597.
You could be approved quite easily, or you could have major trouble. Odds are you will be somewhere in the middle. They will need to work with you, but may find the right loan for you eventually. If you have someone who can go in on the house with you, like a parent or spouse/sig other that could help alot.
2007-02-20 03:35:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There are many other factors that are taken into consideration in addition to your credit score such as employment history. So, it's really not possible to state whether or not a specific credit score would be approved for a home loan.
2007-02-20 02:45:28 · answer #3 · answered by jsvarrone 1 · 0⤊ 0⤋
Of course you can. Depending on your down payment and your cash reserves, you may even be able to qualify for the best rates available. Credit score, although important, isn't everything.
Some lenders, like the one I work for, have layered commitments from the investors that allow us to qualify some borrowers that others cannot. I got a Fannie Mae approval for my neighbor and she had a 583.
Let me know if i can answer any questions for you to help you prepare for your purchase.
2007-02-20 03:10:14 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You can get one but it will probably be with one of the sub-prime lenders, which means you're going to be paying a higher interest rate.
Start by trying to raise your credit score. There is no magic formula to that. Make payments on time. Reduce the amount of debt you have. Late payments and high debt to earnings ratio can really lower your score.
If you have credit cards, pay more than the monthly minimum payment to start getting them paid down and stop charging on them. If you have a card with a $5,000 limit and you have $4500 charged up on it, that goes against you. You need to get that reduced down to no more than 50% of your limit. 30% is better. zero balance is best of all.
2007-02-20 02:38:43 · answer #5 · answered by Faye H 6 · 0⤊ 0⤋
I got approved for a loan with a credit score just under yours and some other marks on my reports.
It just depends on the finance institution and what there policies are. You may get a high interest rate with approval.
2007-02-20 02:33:57 · answer #6 · answered by UOPHXstudent 4 · 1⤊ 0⤋
You may be eligible for 90% loan to value.This means you have to bring 10% down.However there are other things you need to consider.
Morgage Consultant
setuup4@yahoo.com
2007-02-20 08:03:08 · answer #7 · answered by Prakash P 2 · 0⤊ 0⤋
good with a 580 you can get 100% loan. you just need to be in the same line of work.
2007-02-20 02:54:03 · answer #8 · answered by s_uperdave 3 · 0⤊ 0⤋
Not very good, but it can be done. You will more than likely have to have a good size down payment and/or pay a higher interest rate.
Good luck!!
2007-02-20 02:32:00 · answer #9 · answered by sweetsum691 5 · 0⤊ 0⤋
i've been browsing more than 4 hours today seeking the answer to the same question, and I haven't found a more interesting debate like this. it's pretty worth enough for me.
2016-08-23 18:40:56 · answer #10 · answered by Anonymous · 0⤊ 0⤋