Question by Its A Secret!: Question About Bad Credit Mortgage?
I have several questions about buying a home with bad credit. Before I do, let me give you some information about me to help you better answer the questions.

I’m hoping to marry my current girlfriend sometime in the future – maybe in a year or so, God willing. We would probably rent an apartment for a year or two after getting married, then would like to buy a home.

The good news is that her credit is excellent. My income is about ,000 a year, and her’s is about ,000 per year, so our combined income would be about ,000, assuming nothing changes between now and then (but hopefully it will change for the better .

The bad news is that my credit is bad – I had a bankruptsy a few years ago, and my credit score is just over 600, which is pretty dismal. I understand that there are ways to improve your credit score (any tips would be appreciated), but I’m just trying to get an idea of what kind of interest rate we might receive on a mortgage based on our current financial picture.

I don’t understand how the bank would determine our interest rate considering her good credit and my bad credit. Based on my credit score, I would think the bank would give me a rate of about 8.5% or higher, if I could even qualify for a loan at all, but based on her good credit, my guess the interest rate would be about 5.5%. My guess is that we could probably afford a home in the 0,000 to 0,000 price range.

I’m very new to all of this, so I understand that my estimates may be off, but any feedback or advice you can give would be appreciated. This would be a few years away, but I’d like to do as much as I can in the next couple of years to improve my credit, and to plan for this so we can make the best possible decision when that times comes to buy a house.

Thanks to all that respond!

Best answer:

Answer by lightupthesky25
If you are not looking to buy a home for another two or three years, the interest rates picture can change drastically between now and then. Just three years ago interest rates were 2-3 percent higher than they are now. More than likely interest rates will go up between now and then.

Right now you should be able to qualify for a mortgage with a score of 620. My best friend purchased a home last May with a credit score about that range and got slightly under 5% interest (which was great for that time). My husband and I purchased our home last November with credit scores in the 720s-740s and got a 5% interest rate. We both purchased homes in the 0K range. The interest rate you get will vary widely depending on when you purchase, especially as rates fluctuate daily.

As for helping your credit, the best thing you can do is open a credit card with a small limit. Charge a few things on it every month, and pay the minimum amount on time for a few months, then pay off the amount. You can carry a balance if you wish, for as long as you wish, and it will keep your credit good as long as you pay the minimum amount on time every single month.

Most lenders are also looking for different types of credit. Not only credit cards, but auto loans, student loans, etc. As long as you are making your minimum payments on time every single month your credit score will go up.

You can also boost your credit scores by keeping your balances to less than 30% of your available credit. For example, if you have a credit card with a 0 limit and another credit card with a 00 limit, you want to keep your balances at or below 50 (which is 30% of 00). Paying down debt will help your score a lot.

Know better? Leave your own answer in the comments!

I live in Los Angeles and work a full time job and have another part time job on the side. However, even with that, money is still very tight. Under normal circumstances, I am able to make ends meet every month, but I rarely have much of anything left over.

However, the last few months have been filled with a string of family financial problems.

My parents are close to foreclosing on their house and the my dad was laid off. Consequently, I have had to help my parents pay their mortgage and bills. It is deeply saddening to see them in that state and has been horribly embarrassing for my parents to have to ask me for money.

All in all, I make about 2100/month, including tips. I pay about 950 in rent and utilities and 75 for students loans. Then there’s insurance, food, and some expensive prescriptions thrown in.

However, because I have had to give my parents a substantial chunk of money each of the last few months (and pay my brothers rent when he couldn’t, last month), i have been left with just barely enough for rent this month.

I don’t have any credit cards or a car. After college I had a hard time paying students loans and they went into default. However, they gave me a one time opportunity to pay my way out of default and clear my record. I did that and am back in good standing. However, this is still on my credit history (something that I have filed a claim about).

Due to my own stupidity, I am facing a very big need for 00 ASAP. This morning when I went to the DMV to apply for my CA license (from Nevada), I found out that I have an outstanding ticket from more than a year ago. I want to kick myself.

Basically, I need to have a license that is valid (and warrant free) because my full time job requires me to run errands on a daily basis…and because I would like to avoid jail time! I called the courthouse and if I pay the ticket amounting to around 00. it will be done with and I can get my California license and be legal and move on.

However, I just don’t have it. I don’t have anything even close to it. Nor do my friends or family members. If I owned anything that was of any value, I would sell it.

I can’t come up with a fast solution. I have read lot’s of horror stories about payday loans and 90 day installment loans and the last thing that I want to do is get back in over my head and spiral back in default. It was a terrible feeling.

Is there any other reasonable solution? And if taking a payday loan is the only answer, how do I avoid shady practices?

Lastly, in order to compare payday loan’s, it appears that I have to fill out the forms with my info on their websites. Is this something that the credit bureau’s see? I don’t want to negatively impact my credit score by simply “applying” online to see quotes.

Thank you for taking the time to read this long post!

Best,

K

Best answer:

Answer by Tim
I know that my bank (US Bank) has “payday” loans – basically advances against the next direct deposit.

Maybe something like that would work for you???

It is understandable not to trust other people with your money. If so, it is appropriate to carry out proper research online, or in financial magazines, which can give you tips and advice on your finances. For those of you who are not too shy about another party, which HAS gritty practical details of your finances, There are Different ways to get help and still be able to achieve financial success. Asking for help does not show weakness, if anything, you get a lot of knowledge, since you asked. Source of financial assistance is a financial expert.

When looking for one that is important to ensure that they are qualified and will be able to manage their finances with the utmost professionalism. Financial experts are there to support you if you want to make investment decisions in the short and long term.

They will assess your financial situation and find a solution that suits you best. Help you come up with a plan on how you spend your money in a realistic way. Auditors are also an excellent source of financial assistance, especially when you need to do your taxes.

Taxes can be very complex and can take a lot of time and energy. If you get a qualified accountant, will they manage to take care of your taxes and get them ready in time. These resources help you with directions on how informed decisions in relation to your finances.

Making the wrong choice can only worsen your financial situation. Another option is to declare bankruptcy, which some might see as a way to take advantage of lower interest rates.

You can file for Chapter 13, but there is a danger that you can hire a lawyer who is familiar with the settlement of debts. This can only be successful only to ensure that you and the loan companies have agreed on how much you have to fork out so you can pay your debt. This amount will be what you need to assign the duration of your bankruptcy settlement.

Chapter 7 bankruptcy after the court approves this will help you eliminate your debt. This program is not considered debt. Some debt settlement companies are familiar with Chapter 7 and do not want to lose your account. So, should you choose to give you a low monthly rate.

People who have tried to solve their debt has no such provision, which would rely on the services of debt settlement, which debt is reduced to half the total. It’s not wrong to attempt debt settlement on their own, but it is better to use debt relief, better equipped and can perform faster. You can ask your officemates for information on debt service, while bankruptcy lawyers may be able to recommend several.

If the person buying the house is a veteran of home buying, or look out for your first home, home finance advice is something everyone can use before making your purchase. Things can be very different from the last transaction, and now there are new sources of information that exist or that the buyer may not be aware or prepared a financial measures used in real estate.

There was a time when people wanted to buy a house or trying to sell a house near the contact of the Agency and trust with all the details. Neither, how agents are much more difficult competition and now sales are sometimes more important than what the seller or the buyer wants. The Internet is a viable option as a marketing and research real estate investments. While browsing, write down the websites that offer live chat. It is a great advantage, because many questions can be answered immediately. If a live chat or by phone is not available, the need for an e-mail form can be completed with the expected waiting time. If this is the first house you buy is probably more questions than answers in the time. Note them down and make sure everyone has responded. Do not be afraid to ask any questions because it is a significant financial commitment, often for life. When you perform, the buyer must be absolutely sure of everything before you sign on the dotted line. There may be some costs that the new buyer is not aware that they can take control and make more money than expected. Some of these costs are not things that are usually given and may not be covered by the buyer. Experienced dealers may try to use the new buyer and make it look as if they were supposed to cover the costs associated with closure. The market in trouble, buyers who can speak and act, whether some of these costs with the seller or to cover completely. Faced with the opportunity to start from scratch, you can break and pay them for the sale goes through. In reviewing the different mortgage rates available, buyers are often very similar rates. This is really where the Internet is appropriate that the taxes can be found in almost side by side. Do not neglect the slightest deviation in the context of a percentage point can lead to significant savings for the duration of the mortgage. Some real estate agents can help answer. Home finance advice are also available free from certain government and real estate agents and several affiliate sites on the Internet. Speak with an experienced officer. Many responses, which offers real estate, which is not exactly what buyers are looking for in this advice is generally free and can be the best and most just received. Buying a new home is never easy and there are many questions to answer before making a final decision. The house is the largest area of investment real people normally do, and finish what should not occur until the buyer and seller are 100% confident and satisfied with the transaction, which is facilitated by an agent real estate roots.

Try to find the perfect real estate agent in Calgary? A key criterion for buying a home is one that requires a minimum of renovation of the house in Calgary and minimizes costs. Similarly, the house is located near Calgary, associations and clubs.

A great source of information on financial and business services, finance magazines. It is important that these magazines, you are in this industry because you constantly informed of current market trends. You can also get tips and advice on how to manage your business, overcome difficulties, or even how to invest your money. There are a number of financial magazines in the market, and they all have different aspects. You can also go online to research in the subscription price is available, and popular magazines. You may find great deals and save money.

It is important that you buy and get a magazine will be a good reader for a good price. When we look at one, it is important that you go after one that covers all aspects of your business. This may mean having to buy more than one magazine. Do not limit your consumption, and sees it as a long-term investment, because you can store it for years and refer to them in the future. It is also advisable to look for free magazine subscriptions. This will usually require you to fill in information about your qualifications. Be as accurate as possible and do not overdo. This could affect the decision to get a free subscription, if they are supplied to a limited extent. Take advantage of the use of your subscription and read your magazine from beginning to end, because it is not cheap venture. Try to get as much information and tips that you can from your finance magazine, after all, you bought it.

When you ask a local real estate agent or mortgage broker questions, the answers come only from the point of view. By browsing online for ideas, you will find many different takes on the same issue from different reputable sources. Depending on the nature of the issues that require expert may arise, and many are available online.

There are many sites that will have counselors available to answer any questions relating to housing finance tips. They are only available via e-mail, but in many places is a live chat feature that lets you speak directly and immediately to a live person.

This reduces the amount of time waiting for a response to perhaps a very simple question, and thus move the process along much faster. For new home buyers in particular, there are many unknowns when you first buy a house. With so many variables involved.

The need for help only to discover, but it will be very welcome during the financial aspect of the home buying process is one of the biggest problems in the planning of buying a new home because there are many costs and fees that are added to the current price for the house. Know which of them is the responsibility of the buyer and seller are crucial to help them save money for it.

These tips can help buyers know what is the path to cover the additional costs and the seller’s end of things. If all these costs are realized and put on paper, so the actual funding may be set in motion. Many mortgage companies offer very good prices with them. One of the easiest ways to compare them with the online search. This leaves side by side comparison done without high pressure sales gift.

Finance Home Tips on the best mortgage and the best mortgage rates available on many consumer websites. These companies have done research in advance of each home buyer and can offer some of the best advice for the new homeowner. These show how the company offering the best prices and most reliable for the new buyer, along with profiles of companies to ensure that the best decisions are made.

By some time and in an online survey of a wide range of tips and ideas can be placed directly into the new home buyer. This allows them to build a very fundamental level before you go shopping for their new house. An informed consumer is a well-armed consumer, and these tips will form the basis of their arsenal.