Archive for the ‘bad credit mortgage’ Category

Buying a Home with Charge Offs on Your Credit

Tuesday, January 4th, 2011

First, the good news: Nobody knows what it’s like to try and buy a home with charge offs on your credit history like we do. My wife and I had dozens of charge offs and collections on our credit reports when we applied for our new home mortgage.

Second, the bad news: mortgage lenders will probably NOT approve your home mortgage if you have charge offs on your credit. However, don’t give up. You can legally and ethically delete almost any questionable charge off and get into that new home!

If your experience is like ours was, your home buying process went something like this:

  • You and your partner go to open houses and get excited to buy a house
  • You find a house you REALLY want, but don’t have financing yet
  • You go to bank and they run your credit report
  • The banker dude or lady comes back and tells you how bad your credit is
  • You think…”Oh SH&T, how am I going to get that house?!”

If you’re thinking – “YEAH, THAT happened to me.” Here is some advice from experience:
Get a pro to handle the mess of removing the charge offs and other nasty items. We tried sending out credit repair letters, but only dug a deeper hole.

You need to know HOW to dispute bad credit. (You can’t over-dispute or else your file gets a RED FLAG attached to it, which makes credit repair way more challenging.)

We used Lexington Law who got rid of our charge offs just in time to close on a new home in the suburbs of Rochester. (See the full story of how we bought our house with bad credit here)

If you’re the forward thinking type and have planned ahead and you know SOMETIME IN THE FUTURE you’ll need to get your credit in shape to buy a house, then the next paragraph is for you:

Don’t ignore those charge offs – Act Now!
Ok, you’ve got a couple options to remove those charge offs. Again, we used Lexington Law who does more than just file dispute letters. Removing these chargeoffs can be like a science.

They used debt validation and a few other more ‘underground’ methods when a dispute letter just doesn’t cut it. If you’re curious about how it’s done, you can give our paralegal – Beth – a call. Here’s her direct line: 1-866-246-7311.

Finally, some good news again: You’re planning ahead. Since charge offs are one of the biggest reasons consumers are denied home loans, it is good idea that you’re taking steps TODAY to get into that new home!

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Can I Get A Mortage With Bad Credit?

Thursday, August 5th, 2010

Q. Can I Get Approved for a Mortgage with Bad Credit?

A. Having a good credit rating is more important than ever when it comes to future purchases on credit.  Getting approved for a mortgage is not as easy as it was 5 years ago, or even a year ago, especially with the turn of events connected with the real estate bubble bursting.

It was often thought that secondary mortgages were the problem when it came to inflating real estate values and collateral worth when compared to income.   We are now learning people often bought houses they couldn’t afford and lived beyond their means, often with catastrophic consequences.

So, if you have bad credit and are looking to get approved for a mortgage, having a substantial down payment of 30% or more of the purchase price would certainly help defray some of the costs and lower the amount you want to borrow. Still, an unfavorable credit rating will still hinder any application.  At the very least, if you were approved, you would pay an interest rate comparable to the standards now being set by lenders.

We tried to apply for a mortgage even while our credit scores were in the 500 range. No lenders would even consider giving us credit. You may do what we did, which was to enroll in the Lexington Law credit repair program for a few months until your score is good enough to re-apply.

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Getting a Bad Credit Mortgage in 2010

Wednesday, April 21st, 2010

Gone are the days when getting a mortgage with bad credit was easy. It’s 2010 and people with bad credit are wondering if it’s possible to get a home loan if they have low credit scores.

In today’s economy, you may not even thing of purchasing a home.  The reality is that you may really need a mortgage, you may not be qualified because of bad credit.

Every mortgage lender is different, so it is important to deal with a mortgage broker or work with a company who knows the ropes. Specifically, you may consider getting help from a law firm such as Lexington Law who can help you determine what you need to do in order to get a mortgage.

Getting approved for a bad credit mortgage may take some work, but may be easier than you think.

How can you make your application look brighter when applying for a mortgage, in spite of bad credit?  Your priority should be on actively improving your credit score.  A good credit score is anywhere between 700-725 and can be achieved by making sure you monitor your credit report.  If there are inaccuracies or errors, file the required investigations to get the information corrected.

Next, the lender looks at your credit history in more detail such as how much money you earn and the amount of the debt you have. Do you typically pay your debts on time or are you habitually late?  If you have late pays, was the delinquent payment due to loss of employment or illness?  These things – including severe delinquencies – are more likely to prevent a loan from going through.

Next, the lender will evaluate your income. They will ask questions like “How much money do you earn now, as opposed to when your credit became a little battered?” An increase in your income stream versus a year ago will play heavily into the lender’s determination as to whether to approve your application for a mortgage.

The best thing you can do if you are trying to get a mortgage with bad credit is to find out exactly where you stand. If you know where you stand it’s easier to determine where you’re going!

Eileen Loveman  04.09.10

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