need to purchase home and credit is 588 what r my chances of getting mortgage. bad credit due to divorce?
October 10, 2008 - strong opinion! ex cleaned out my acct of 25k without my knowledge, my credit cards-he was authorized user, i walked away with debt incurred by other, loans to repay, etc. i was not financially careful. i pay $1400. in rent now. why not purchase?
When applying for a home loan your credit report will be reviewed and you may be required to provide a number of other details, including: Employment and income records, Tax Returns for the last few years<!--List of assets, List of liabilities and what you owe, Your budget showing monthly living expenses so that you can demonstrate an ability to pay. http://best-loans.awardspace.com/homeloans.htm http://mortgages-finance.awardspace.com/ With this information you and your lender will be able to determine the kind of home loan and size of the right mortgage for you. In some cases, you can obtain a pre-approval or pre-qualified-->certificate, which shows how much you can borrow so that you can then shop for homes in an appropriate price range.
#1 - Bad credit is not due to divorce. It is due to not living up to the financial obligations that you signed up for. #2 - You do not NEED to purchase a home. You WANT to purchase a home. This unrealistic sense of need vs. want is probably what led to #1. #3 - If you want to eventually purchase a home, go rent something cheap, and clean up the derogatory marks on your credit report. (i.e. PAY your debts.) Then, save up a reasonable down payment (20% minimum) and shop for a reasonable home. A reasonable home is one with a 15 year fixed rate mortgage with a payment of no more than 25% of your take home pay.
unlikely, your only shot is if you qualify for a FHA loan because they don't go by credit score but credit history so if the negative info is old you may have hope, however if the debt is recent (as in you have late payments within the last year and many open collections) you still won't be approved. Conventional loans are just out of the question, now most require at least a 650 and the subprime market basically doesn't exist now and if you found one your interest rate would probably be above 10%.
- hint: Divorce isn't a scored criterion. Slow pays, no pays and other derogatory items are scored.
You would be a poster child for sub prime mortgages... you would not qualify for a prime mortgage unless you have a hefty down payment, perhaps a very favourable divorce settlement, an income that would tell everyone that you can clearly make the payments. If you could live rental for a year or two, and at the same time build up a good down payment over and above what you started the year with, that might persuade a lender who has a repossessed home to sell. We remember there are a lot of lenders eager to get those homes sold to anyone likely to pay.
- Possible with a mortgage broker.......you will pay higher interest rate, and must have open trade lines with all payments on time and current.....and qualify
Knowledge Base: Mortgage
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