07-19-2011 02:37 AM
I AM A SINGLE MOM WITH A FAIRLY GOOD INCOME, I AM NOT QUITE SURE WHAT MY CREDIT SCORE IS AND PLAN TO CHECK INTO IT SHORTLY, I HAVE NO CREDIT CARD I HAVEN'T PAID NOR DO I HAVE ANY LARGE DEFAULTS. I JUST HAVE LITTLE BILLS THAT I AM JUST FINDING OUT ABOUT LAB BILLS THAT SHOULD HAVE BEEN PICKED UP BY MY INS AND WERE NOT , THINGS OF THIS NATURE,
I AM WONDERING WHAT DO THEY CONSIDER TO BE A POOR RISK AND DO THEY OVERLOOK SOME OF THE THINGS ON ONES CREDIT REPORT, I FOUND A CONDO THAT I LOVE SOOOOO MUCH BUT SEEM TO GET DISCOURAGED BEFORE I EVEN TRY TO GO FOR IT.
CAN SOMEONE ENLIGHTEN ME ON THE SCARY DREADED CREDIT REPORT!!!!
07-20-2011 03:42 PM
Welcome to the ZipRealty community! Thank you for posting in the forums.
I will contact one of the local agents to see if they are able to answer this question for you.
Client Care Specialist
07-20-2011 08:42 PM
I think you should pull your credit and get your score - or talk to a lender (your bank/credit union) and have them pull it so you know your score. With all the changes since the credit melt down... I believe you need to have a 580 or 620 FICO score to qualify for a loan; I'm not sure if a My Community program is available for condos for down payment assistance. Usually for an FHA loan you will need 3 1/2% for a down payment and if the condo is not FHA approved you will need at least 5% for a conventional loan.
What area are you looking? In what City is the condo located? Thanks, Debra Hamilton
07-21-2011 08:55 AM
Deb is right - first you can go to freecreditreport.com to pull your credit report for free and with no "dings" to your credit. When you get an idea of your credit score, then speak with a lender who can advise you about the medical bills. Lenders have told me they are looking at med bills differently than other revolving credit - because so many people now have outstanding medical bills. So, it's important to hear details from a lender.
What neighborhoods are you interested in? Do you have a lender? We can help you with all this!
07-22-2011 12:10 AM
Greetings Single Mom,
You need not fear the 'dreaded credit report'. It can be an easy dragon to slay with patience and persistence. If you're not on the one payment plan and require a loan to fund the purchase of a home you will need to have some established credit. This can happen a number of ways, including using a credit card for the purchase of gas and groceries you've budgeted every month and paying it off every month. Talking with a lender will help shed some light on that, especially if some credit restoration is necessary. I've got some good lenders that can help you and if you'd like some help with that, please let me know. If you're meant to have that beautiful condo, it shall be. Have a good day. Mack McKindley
07-23-2011 12:45 AM
The worst thing you can do is nothing. I highly recommend that you work with an excellent loan officer (I know several from many different lending institutions). Go through the prequal process and find out ALL the facts of your situation (not just a snapshot like some "free" credit report sites provide).
Then you'll know what programs you qualify for - and equally important - what you need to do over the short and medium term if you don't qualify at all right now. You can't plan and set goals without the facts.
Also, there are some low income programs available in different cities that can help you with NO-INTEREST loans that provide you with a down payment so becoming a homeowner might be easier than you think.
Some lenders will "forgive" some collections - especially medical, and those several years old. Nobody will forgive bad government debt (i.e., defaulted school loans, etc.) but even then, all you have to do is implement a payment plan and you would again qualify for a loan. Even accounts in collection can be negotiated to as little as 50 cents on the dollar (but be sure that you get a letter from the creditor before you send payment).
I see a lot of people who can make little lifestyle changes that can add up to significant progress on purchasing power...so go for it!