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Can We Qualify for a Loan with Bad Credit?

Questionkeyboard wide Can We Qualify for a Loan with Bad Credit?

Q: My husband and I are moving out of state. We have had problems in the past, we have really bad credit. We lost a home about three years ago due to my husband losing his job. We never were late on our payments for five years; then he lost his job and we tried to keep up using all our savings, but with the economy the way it is, we were unable to save it. We haven’t had any recent bad credit since we left Michigan. My husband now has an excellent income and we really want to buy a home. We found a really inexpensive home we like and we are just wondering if it would be even possible to get a loan. We don’t have much money in savings (two kids in college) so are we just dreaming or could we really get a home? Where do we start? – Kim

A: Homeownership is not a just a “dream”, it’s a reality that can be accomplished with proper planning. First, consider applying for a home loan, I recommend you and your husband meet with a reputable and knowledgeable Lender in your area. Because of his steady income there may be some loan options available for you despite the credit scores. Much of it will depend on how much you are bringing in (income wise) vs. debt/expenses. Also, the length of employment is another component. Most lenders want to see at least two years of continous employment. Again, meet with a local lender to see where you stand as a borrower and go from there. If you can’t buy now, you will know how to plan accordingly to become a homeowner again soon.

Maria Jeantet is a Realtor with Coldwell Banker C&C Properties in Redding, CA.

A: The best answer to your question would have to come from a mortgage counselor. Most bank offices, large and small, have mortgage reps on staff, so shop around until you find someone you like who you can tell your story to and see if they can help you. It is harder to get a mortgage now, if you’ve had credit issues in the past, so this might turn out NOT to be the best time to buy, but it doesn’t hurt to talk to someone understanding who can help you improve any credit issues you have so you can plan for the day when you will be able to buy again with confidence.Good luck!

Roberta Baldwin is a Realtor with Keller Williams NJ Metro Group in Montclair, NJ.

A: You need to sit down with a good mortgage lender. Use a reputable one that you can sit down with face to face to discuss your options and what “special” programs might be available in your area that might help you. If you don’t know a good lender, ask a local realtor who has a lot of experience with selling inexpensive homes in the area that you want to buy in, they’ll know which lenders are best for which types of loans.

Dale Weir is a Realtor with Coldwell Banker in St. Louis, MO.

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