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Wednesday, March 4, 2009
I want to buy a home, what if I have a large down payment but a bad credit score?
When a lender is considering a prospective client for a loan, it goes something like this: What is the credit score? What is the credit history? How much money do they have for a down payment?
Sure, a huge down payment will help to cover a spotty payment history. Although, you should be prepared for the absolute worst in fees and interest throughout the life of the loan.
In short there is no way around it. Even with a good deposit, you will need a supporting credit score and accompanying history to make home ownership a reality.
This was true before the credit crisis and now in the midst of many banks collapse, a sound credit score and report is more vital than ever.
When Im asked about low scores and high down payments, I am always curious to know whether the client has done anything to try and improve their credit score. To the uneducated consumer your credit score can be confusing.
With minimal effort you can request a copy of your report and see exactly what is on it. Often, costly errors are the cause of low credit scores. Having cash on hand gives you the power to negotiate and settle your old debts. When you settle your debts, negotiation that in exchange for you payment the bad credit will be removed from your credit report.
If you don't want to solve the errors your own, it might be wise to consider the help of a good credit attorney. For a low monthly fee and aggressive lawyer will tackle the problem of cleaning up your credit history and boosting your score.
Another fallacy is that it takes to long to repair your credit. This couldn't be farther from the truth!
It can take several months, to a year in the more severe cases, cleaning up a low credit score. Even in the worst cases of taking a year to turn yourself into a good credit risk you can save untold thousands in finance charges, fees and when you finance or borrow.
In conclusion, if you have a large deposit and a low credit score, good! Turn your situation from good to great by taking some positive action today. The money you save will be your own!
When a lender is considering a prospective client for a loan, it goes something like this: What is the credit score? What is the credit history? How much money do they have for a down payment?
Sure, a huge down payment will help to cover a spotty payment history. Although, you should be prepared for the absolute worst in fees and interest throughout the life of the loan.
In short there is no way around it. Even with a good deposit, you will need a supporting credit score and accompanying history to make home ownership a reality.
This was true before the credit crisis and now in the midst of many banks collapse, a sound credit score and report is more vital than ever.
When Im asked about low scores and high down payments, I am always curious to know whether the client has done anything to try and improve their credit score. To the uneducated consumer your credit score can be confusing.
With minimal effort you can request a copy of your report and see exactly what is on it. Often, costly errors are the cause of low credit scores. Having cash on hand gives you the power to negotiate and settle your old debts. When you settle your debts, negotiation that in exchange for you payment the bad credit will be removed from your credit report.
If you don't want to solve the errors your own, it might be wise to consider the help of a good credit attorney. For a low monthly fee and aggressive lawyer will tackle the problem of cleaning up your credit history and boosting your score.
Another fallacy is that it takes to long to repair your credit. This couldn't be farther from the truth!
It can take several months, to a year in the more severe cases, cleaning up a low credit score. Even in the worst cases of taking a year to turn yourself into a good credit risk you can save untold thousands in finance charges, fees and when you finance or borrow.
In conclusion, if you have a large deposit and a low credit score, good! Turn your situation from good to great by taking some positive action today. The money you save will be your own!
About the Author:
For a free credit consultation call 1-866-246-7311. Or for a free credit repair letter or to learn how to remove bad credit from debt collectors such as Palisades Collection.
posted by Credit Counseling at
9:20 AM
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