Buying a home?

Question

I was thinking about buying a home.I have never bought one before.My husband and i dont have really good credit. Is this still possible or is it not even an option. I do have alot of family that works in real estate but they arent being of any help at the moment.Thanks

Also im trying to buy a home in the 150,000-200,000 range

Answer 1

Keep this in mind: the lower your credit scores (under 600), the higher your interest rate and the more likely you'l'l need a down payment. If you are in the 600's you may qualify for a 100% financing home. The first thing to do is find out just where your credit is.

Here are some things that go into a loan approval: credit score (higher is better), employment history (stable? or are there job gaps?), debt ratio (lower is better and it is based upon your monthly debts including the proposed house payment), down payment (the more you put down the more likely you will get approved).

Answer 2

Buying a home is traditionally a really good way to build equity, and currently we are in a buyer's market in most areas. If you don't have good credit, you may have a problem finding a reputable mortgage company that will give you a mortgage. I say "reputable" because there are always places that will give you a mortgage regardless of your credit, but will have interest rates and payments that are adjustable and you may end up losing your newly bought house. Also, I don't know what area of the country you live in, but here in Maryland you won't find anything to buy for $150,000-$200,000. Find a credit union (they usually have much better rates for mortgages) and find out what mortgage they will qualify you for. Then look for houses in that range. Good luck.

Answer 3

If your credit score is 625 or below, you're going to have some serious difficulties here. Since the recent wave of foreclosures started, lenders are seriously tightening their criteria for extending mortgage loans.

Go to www.annualcreditreport.com and ask for your free annual credit report from each of the three credit reporting firms. You will have an idea where you stand. Once you have ascertained whether or not your credit is good enough, head to a mortgage broker and see what they can offer.

Answer 4

Your family being of little support and being in the industry should tell you either they hate your guts or they really care about you and don't want to be a party to your making a financial mistake right now. Get your credit back in shape, then worry about buying. If your credit is not good, you are going to get gouged pretty hard by the financial institutions.

Answer 5

It is an option, but not one you want to take. If you find someone to give you a mortgage, the terms will make it cost prohibitive. It is advisable to fix your credit first, save save save for a downpayment, then go forward with a home purchase.

Answer 6

It is possible but you will pay a higher interest rate on your loan. You need to chat with some mortgage brokers who can shop for a loan for you. Be careful of high fees and variable interest rates and prepayment penalties on your loans. Do some research and be aware so that you don't get taken advantage of.