my credit score is in low 600's I would probably have only a few thousand for a downpayment, first time home buyer in this even possible to get financing for a home with my situation--in about a year. My apt is too small, neighbors are a problem--always feuding with us. so house is needed sooner rather than later. What can we do? with the market the way it is--could i be approved for a home loan. we just paid off some old debt. so i assume my credit score will go up some from what it is now 615...average.
what chance do i have of obtaining a home loan in 1year in my situation.... thanks..
2007-09-30 13:22:45 · 5 answers · asked by nikkylyn 5 in Business & Finance ➔ Personal Finance
Great news! It is absolutely possible for you to obtain a home loan in a year. You are on the right track to becoming a home owner in less than a year if you want to know the truth! You have a credit score in the 600’s and you plan to have some money saved.
However, I do recommend you continue your goal of paying bills in a timely manner in order to increase your credit score. Increasing your credit score will place you in the best possible situation in that it will give you more home loan options, low loan rates as well as increase your chances of being able to purchase more house.
I have added a link regarding just about everything first time home buyers need to know.
I hope this answers your question.
2007-10-01 15:27:35 · answer #1 · answered by Quicken Loans 5 · 0⤊ 0⤋
If you can, try to put off buying a house for a little more than a year. Spend the next year pulling up your credit score.
You may want to check out Suze Orman's web site.
One of the best things you can do to pull up your credit score - is pay your bills on time!!! That means, rent, water, power, phone, cable, credit card... all of them. If all you can make is the minimum payment - make the minimum payment but make it on time. Never Never late. Every time you pay a bill late - you hurt your credit score.
Look at your debts. Try to pay off the highest interest ones first. A lender will look at your debt to income ratio.
Spend the next year really working on your credit. Then after a year, if your score has gone up, then look at buying a house.
2007-09-30 21:22:18 · answer #2 · answered by Boots 7 · 0⤊ 0⤋
You can with your bank to see what mortgage amount you might be approved for and what rate and payments.
You might also look for a house to rent with the option to buy and during the option period work at improving your credit score.
2007-09-30 21:20:28 · answer #3 · answered by gatzap 5 · 0⤊ 0⤋
if you don't ring up any more debt and save as much as you can you should have a good chance in 12 months
2007-09-30 21:36:52 · answer #4 · answered by Anonymous · 0⤊ 0⤋
put money in the bank
2007-09-30 21:50:29 · answer #5 · answered by Christie W 4 · 0⤊ 0⤋