My husband and I were trying to get our finances in order to purchase a house in the next 6 months. We are paying off a few small loans, all totaling around $4000 and we were going to save $1000 to have in savings just to show financial security. Now I'm worried that if we wait 6 months, we won't be able to get a mortgage loan. You see, we filed for Ch. 7 bk 4 years ago. We have one situation on our credit where late payments show up, but this was a car that we sold to someone else who was paying the payments. We have proof, via the contract and bank statements, that we weren't responsible. I was told that should do the trick for those late payments. Other than that, we have not had any in the past 4 years. My credit score is around 630 and my husbands around 600. On one hand I believe that this sub prime bust will lower home costs and be good for us, but on the other I have to wonder whether we'll even qualify. Help!
2007-03-14 08:06:45 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
I realize that they will be available but would we be better off to go ahead and try to get the loan now vs. waiting 6 months?
2007-03-14 08:20:11 · update #1
Of course sub-prime mortgages will be available, just at a higher rate to offest the risk when people file bankruptcy.
2007-03-14 08:12:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I used to be a loan officer and I will give you some helpful tips. A credit score of 620 will qualify you for a regular conforming loan. I would not worry, they will never get rid of subprime lenders.
The bankruptcy is over 4 years old and you really only need to wait one year to qualify for a mortgage loan, so this will not be a issue.
In my past experience, you should have no problem qualifying, but you may need a down payment of 5%, or you can get the down payment lowered if the house is worth more than your paying for it.
I do want to warn you about mortgage brokers, if they know your worried about getting the loan, they will jack up the interest rate on you to make a extra buck by selling you a higher interest rate loan.
Go to http://www.mortgageawareness.com and it explains this subject on mortgage brokers in detail.
2007-03-14 08:32:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Well, sub prime mortgage companies are going out of business due to the high default rate. They are being a little more stringent on first time homebuyers. Your credit scores are not THAT bad, just keep making it go up.
2007-03-14 09:42:21 · answer #3 · answered by healthspot_2000 4 · 0⤊ 0⤋
i would say go head and get the house now. because who knows what the interest rates will be 6 months from now. sub prime mortgage loans will still be around.
2007-03-14 08:43:33 · answer #4 · answered by cmruffin1 2 · 0⤊ 0⤋
people who're adversarial to bail outs are many times short sighted. They dont understand that a bail out is the lesser of two evils. government intervention on the economic disaster will soften the blow. devoid of the guy made backing the disaster will benefit momentum and then we go through much greater with interest cuts, loan forclosures etc. , it turns right into a compounding undertaking. Who could desire to pay? greater to the element who will pay, that's going to be the working type human beings as allways.
2016-10-02 03:00:42 · answer #5 · answered by ? 4 · 0⤊ 0⤋