My fiance and I want to buy a house but our credits are not that good. Will we ever be homeowners?

We are from New York. We are not looking for an expensive house. He is a contractor so we are planning on getting a home that is around 3 to 4 hundred thousand and do the home improving ourselves. We also will be putting down about 20%. How can we buy a home if our credit sucks? We messed up our credit when we were young. He is 32 and Iam 29.

By | 2013-08-26T19:21:10+00:00 August 26th, 2013|Mortgages Home Loans Interest Rate|6 Comments

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6 Comments

  1. Lakota August 26, 2013 at 10:02 PM - Reply

    Getting credit in the present is a pretty tricky thing. Since you are putting down 20% and assuming you both work full time, you just might be able to find a mortgage company to help finance you a home. The one thing that sticks out is that you two are not married. Putting on the application the word “fiance” will turn alot of people off. They just won’t take the chance on lending you money then you two split up. Sorry I couldn’t be of anymore help. But Good Luck.

  2. chatsplas August 26, 2013 at 9:05 PM - Reply

    SURE, if you really WANT to and WORK to make it happen. No one is going to give you a house.

    You repair your credit the same way you destroyed it, one payment at a time. Stuff from when you were young does not alone give you rotten credit now–change your bad habits. Get rid of any delinquencies–pay them off. Pay down your credit cards. Go to a lender and see if you can get pre-approved. Having 20% down can counteract some credit problems. Talk to the lender to find out just WHAT to do to improve your credit enough to qualify for a loan. You need Good credit, Sufficient income, Adequate down payment, low debt ratio.

  3. Craig C August 26, 2013 at 8:44 PM - Reply

    Go to annualcreditreport.com to ensure you’re credit is accurate.

    Know that credit history drops after 7 years for most actions.

    Having 20% down is a very good thing. The best advice I can give is to go to a bank and apply for a loan and talk to the professionals about what you need to do to get the rate you want.

  4. Dee August 26, 2013 at 8:11 PM - Reply

    if you have any other bills, pay them down with the 20% you have to put down on the house. wait til your credit score goes up, so your interest rate will be low. it’s hard enough to get a loan, but when your score is low, banks will not loan it to you these days. i’d pull both your fico scores, print them out, go to mortgage broker and ask them before processing the whole thing what they think. More your credit is looked at, your score will go down a little bit. you don’t need that right now. If you work w/one bank, go talk to their lender w/your fico score.

  5. MICLO915 August 26, 2013 at 7:48 PM - Reply

    you gotta have good credit, especially after the banking crisis in our economy. you will have to fix whatever loans you have defaulted on and continue to pay off anything that you are making payments on in order to raise your scores. i have a good credit score (650-700 depending on which agency you ask) and i couldnt get a damn credit card with my bank, despite making decent money.

  6. Judy August 26, 2013 at 7:35 PM - Reply

    Spend a couple years getting your credit cleaned up, then if you have 20% down you might be able to get a mortgage.

    Good luck

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