Can I Buy a House if My Credit Isn't Great

Life Changes... Constantly.  The up's, the downs ... Both big and small will have quite an impact on your life and your future.

One of the questions I am constantly asked is "Can I Buy a House if My Credit Isn't Great" 

Of course there are exceptions to every rule and and it really depends on how "not great" your credit score is.  It may take a little work and several months to see results, but the answer to this question is almost always YES!   

Negative Credit History will always have an impact but in most cases it will not cause you to be denied completely.  Depending on the circumstances that caused the negative, it may be easier to remove than you might think.

1)  Due to a federal law that regulates debt collectors, known as the "Fair Debt Collection Practices Act", you are allowed to request a Validation from Debt from a creditor.  If the creditor is unable to provide this Validation, they are required to remove the debt and any negative remarks from your credit report.  You can do this by sending letters via trackable mail or through a variety of websites that will provide this service free of charge.

2) If the debt was not yours to begin with, you should be able to contact the original creditor and request the debt be removed from your credit report.  This includes cases where you were added as an authorized user to someone else's account and they stopped paying the bill. 

3) If you stop paying on your bill, many companies will write-off the charge and then sell the debt to a 3rd party collection agency for pennies on the dollar.  These third-parties are not the original creditor and in most cases do not have rights to put negative remarks on your credit report.  If this is the case then you should be able to contact the Credit Bureaus individually (Transunion, Equifax and Experian) dispute the negative and request removal.   This is because you personally never opened an account with the third party company.  

Paying your bills on-time and having an adequate debt-to-income ratio is the best ways to have the credit score you need to buy a house...But life happens and when something is out of your control, remember, there may be alternative options.  



Whether looking to Buy, Sell or Invest

Holly DiMemmo, Realtor
Joe Maggio Realty
C: 302-930-8800
O: 302-226-3770
BuyandSellDelaware@gmail.com

Like On Facebook @buyandselldelaware

Comments

Post a Comment

Popular posts from this blog

Can I List My Home For Sale if I am Late on Mortgage Payments

Many times a stroke of bad luck will come along and as hard as people try to stay afloat, they will fall behind on their mortgage payments.  Sometimes it just happens.  Change in job status, reduction of hours, medical disability... there are many reasons why good people fall behind. If this has happened and you are looking to sell your house but don't know where to start, remember that in most cases, the first step is list your house For Sale with a Realtor.  While listing your house For Sale By Owner may seem like a smarter way to go, it is usually just a waste of valuable time and resources (not to mention money paid for signs, advertisements, lockboxes, flyers, etc) The first thing you want to do is call a local Realtor who is familiar in Late Payments, Short Sales and Foreclosures.  A Realtor who is experienced in these types of listings will be able to explain the Short Sale process to you, come up with a plan of action and be able to list your home For Sale while working
Read more

Purchasing a Foreclosure

Many homes listed as Foreclosure properties are listed in the MLS.  These properties may need more work than a personal home sale but the repairs that are needed are usually taken into consideration when pricing the property. Many times when purchasing a Foreclosed property, the bank has already completed an inspection on the property so they are aware of any issues.  If this inspection was done, it will be available to you.  It is recommended that you complete an inspection of your own as well. In many cases, a Buyer will be able to get a Sellers Assist when purchasing a foreclosed property as well as a special loan that can help offset the costs of repairs. It is recommended that you call a Realtor who has experience working with Foreclosed properties. For more information please contact Holly DiMemmo, Realtor Joe Maggio Realty C: 302-930-8800 O: 302-226-3770 BuyandSellDelaware@gmail.com Like On Facebook @buyandselldelaware
Read more

Short Sale Gotcha Down

Short Sale Gotcha Down? Calling an experienced agent to help you navigate the process will Save You Time on the phone with your bank Save You Energy Save Your Credit from Possible Foreclosure Don’t Waste Anymore Time.  Let a professional handle it! With over 16 Years Experience I can Help You! Holly DiMemmo, Realtor Joe Maggio Realty Cell: 302-930-8800 Office: 302-226-3770 BuyandSellDelaware@gmail.com www.buyandselldelaware.blogspot.com From For Sale to Sold and Everything In Between
Read more