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1st step to home buying.


thorice
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Hello everyone. I recently began the credit repair process. My scores are slowerly rising and I'm trying to purchase my first house. My question is what is the first step I need to make when trying to purchase one? All replies will be greatly apreciated.

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Hello everyone. I recently began the credit repair process. My scores are slowerly rising and I'm trying to purchase my first house. My question is what is the first step I need to make when trying to purchase one? All replies will be greatly apreciated.

It's a good feeling to see your credit score going up, as the result of a credit repair.....:)

I personally know, hence my name 2nd time around. I was 511, now it's 795 (almost in the 800 club)....8]

Having good credit your have to work for it, first you need to learn how your credit is actuially scored. There's alot of information here on the web site to look over. Remember - noboby is going to do a better job then you yourself. Create a plan and stick to it.

The first step is to see if you qualify for a loan, before you begin looking for a home. You need to get all your finanial cards in order.

What is your credit score?

Have you been working at the same job for at least two years?

Are you married? Is there going to be two incomes?

Are your monthly bills lower than 50% of your income? (FHA limit 43%)

Does your credit report show unpaid debt, judgements, collections?

How much going to put money down?

Is anyone like a family member giving you money for your down payment. Make sure it's seasoned.

Here's a very good tip that can save you alot of money......

When you find your home, remember the selling price your not going to pay. This is called negociating the price down. First offer 30% less, asking if they can come down. The seller will be shocked at your low offer, so they lower the selling price.

Then come back with your second offer normaly 15% less, to see if they come down again. Then offer 5% less for your third offer. Your final offer is going to be based on getting the home appraised and inspected to support value.

Bartering the price down will save you money. If you do not try this, nobody is going to do it for you.

Last month I explained this to a Lady buying a home in Georgia, she saved $40k off the selling price.....8-).

...

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All good advice from 2ndtimearound. Let me add:

When making an offer on a house, ask the seller to pay all or a portion of your closing costs. Most lenders will allow up to 6%. Sometimes this can be negotiated back into the purchase price after an initial offer has been accepted.

In this lending market, look to an FHA loan. FHA will loan up to 97% of the purchase price. If you don't have the 3% to put down, look to a down payment assistance program approved by HUD, like Ameridream. Personal gift funds (like money given to you by a relative) are also allowed as a down payment.

FHA requires that any open judgements on your credit report be paid. Not all collections, though. Recent collections and late payments on open tradelines will hurt your FHA chances. Keep in mind that an FHA loan approval is not completely score driven. 540 credit scores can get approved.

If your credit score improves enough and other factors weigh in, like your ability to show reserves (like retirement savings in a 401k plan), a 43% debt to income ratio (DTI) is no longer an absolute. FHA will allow higher.

When contacting a bank or mortgage broker, let them know that you do not want your credit report accessed. Tell them what your credit score is. Inform them of any derogatory items within your report. Your most recent late payments, etc... In the end they will have to access your credit report to make a legitimate lending decision, but initially, they should be able to approximate (with accruate information from you) what you will qualify for. Do not allow a lender to tell you they cannot make a determination without accessing your credit report. They can. Multiple credit inquiries can negatively effect your credit score.

Buying a house is a great event. The more you know, the less stressful it will be. I bet home ownership is closer than you think!

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It's a good feeling to see your credit score going up, as the result of a credit repair.....:)

Having good credit your have to work for it, first you need to learn how your credit is actuially scored. There's alot of information here on the web site to look over. Remember - noboby is going to do a better job then you yourself. Create a plan and stick to it.

The first step is to see if you qualify for a loan, before you begin looking for a home. You need to get all your finanial cards in order.

What is your credit score?

Have you been working at the same job for at least two years?

Are you married? Is there going to be two incomes?

Are your monthly bills lower than 50% of your income? (FHA limit 43%)

Does your credit report show unpaid debt, judgements, collections?

How much going to put money down?

Is anyone like a family member giving you money for your down payment. Make sure it's seasoned.

Here's a very good tip that can save you alot of money......

When you find your home, remember the selling price your not going to pay. This is called negociating the price down. First offer 30% less, asking if they can come down. The seller will be shocked at your low offer, so they lower the selling price.

Then come back with your second offer normaly 15% less, to see if they come down again. Then offer 5% less for your third offer. Your final offer is going to be based on getting the home appraised and inspected to support value.

Bartering the price down will save you money. If you do not try this, nobody is going to do it for you.

Last month I explained this to a Lady buying a home in Georgia, she saved $40k off the selling price.....8-).

...

I like this answer, because if you do not have the job history (in most instances), or have too many collections and judgments, then you should get these ducks in a row before attempting to make a major commitment such as homeownership.

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I have scores above 540 below 600. I have been at my current job 1 year 7 months...and in the same line of work for over 5 years. I have a small 401K, current trade lines that are always on time and paid every month. But I cannot get approved, not even FHA, could it be for a medical collection that just went on my credit from July of this year its for a 100.00.

I have no judgements just lots of old(99-2000) charge offs/collections.

I have very little money down...the last broker said that the lenders view me as a "layered" risk. and my DTI is too high? I gross 3K a month and only have 500 going out in debt thats on my report? I am trying to get 130K-140K nothing crazy.

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I have scores above 540 below 600. I have been at my current job 1 year 7 months...and in the same line of work for over 5 years. I have a small 401K, current trade lines that are always on time and paid every month. But I cannot get approved, not even FHA, could it be for a medical collection that just went on my credit from July of this year its for a 100.00.

I have no judgements just lots of old(99-2000) charge offs/collections.

I have very little money down...the last broker said that the lenders view me as a "layered" risk. and my DTI is too high? I gross 3K a month and only have 500 going out in debt thats on my report? I am trying to get 130K-140K nothing crazy.

For future reference, next time it would be polite to go ahead and start your own thread stating your situation as opposed to "hijacking" someone else's. ;)

In regards to your question, if your income/liabilities are what you say they are, then there is no way your DTI is too high. Do you have other obligations that you might have forgot to mention? Child support? There has to be a reason he told you that.

Just trying to help you figure this out.

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