and say a month or two later my credit is good , middle score over 620......then can i refinance my loan to a prime loan ?
(i was just about to apply for a home loan as i have good credit due to authorised user tradelines, since this will change on sept 1 i wanted to get my loan before that. this morning i notice an incorrect entry on my credit report ($650). i will fight it but it will take 30 to 45 days.......too late for me because as soon as sept 1 hits... the au lines will not be considered and my middle score will crash )
2007-08-11 07:35:41 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You have to make a decision. I have a couple of questions.
#1 Do you have a home under contract presently?
#2 Are you pre-approved for a loan of any kind sub-prime or anything else?
You indicated you are about to apply for a home loan, so I can safely say that the answer to my two questions are "NO"
Since you have neither applied for a loan or have a house under contract, wait until you have fought the credit bureaus and cleaned up your credit a bit.
With a higher credit score you will be able to lower your interest rate thus lowering your monthly payment.
If you get pre-approved and find a house before Sep 1, you will get a loan that has a pre-payment penalty that will be in effect for a minimum of 2 years and could be in effect as long as 5 years, but normally they go no further than 3 years.
So make up your mind what you want to do and what is important to you.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-08-11 09:04:17 · answer #1 · answered by loanmasterone 7 · 1⤊ 0⤋
I don't know what part of the country you live in, But if you can wait the 45 days untill the repair is done. They may GIVE you a house. I have just come from Atlanta where default is everywhere the number of stunning houses empty is nothing
short of amazing. In 45 days with credit repaired you will be able to get a new or almost new house for a song. I know its hard, but my advice is to wait. The Deals are great, and getting better by the day.
2007-08-11 14:45:38 · answer #2 · answered by nutsfornouveau 6 · 3⤊ 1⤋
Most subprimes come with steep early repayment penalties which lock you in. Often, you would have to pay $10,000 or more to refinance.
If your credit is that bad, then you are not ready to buy a home. Start saving up some money, pay all your bills on time, get out of debt. THEN start looking for a home.
Pretty good chance you can't get a subprime funded right now anyway.
2007-08-11 14:56:52 · answer #3 · answered by Anonymous · 1⤊ 0⤋
you will no longer be able to get a sub-prime loan...
did you not listen to Pres. Bush's Speech this week?
The feds are going after anyone whoeven dares to attempt to sell these type of loans. The Federal Reserve has just dumped $70 Bill into our banks to keep them from going under and they have all been mandated NOT to process any sub-prime, creative financing or zero down loans.
good luck :)
2007-08-11 14:40:04 · answer #4 · answered by Blue October 6 · 4⤊ 1⤋
WAIT until your credit report IS good . (over 700)
Why pay all the extra $$$$ to get in with bad credit ?
That does Not seem wise at all . . .
Is that why your credit is bad to start with ?
>
2007-08-11 14:48:27 · answer #5 · answered by kate 7 · 1⤊ 0⤋
Doesn't sound like there is much you can do before Sept. 1.
2007-08-11 14:38:57 · answer #6 · answered by Alterfemego 7 · 0⤊ 1⤋