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paying off debt to get home loan

Date: Tue, 07/28/2009 - 10:33
Submitted by on Tue, 07/28/2009 - 10:33
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My dad wants to help me to buy my first house with the stimulus that is available. He will pay off my debts to clear my credit up, then I will pay him when I get the $$ from the stimilus. My question.. what is the best, quickest way to do this? I have NO idea what my credit score is. Should I go to the bank first and find out what needs to be removed from my credit? My worry is that I do pay everything off, and still get denied for a loan, and won't have the money to pay my dad back. There is a program in Illinois to help people get a mortgage if you don't qualify for one from a bank. Should I send pfd letters first? Another worry of mine is that this stimilus is only available till the end of the year.. might even be November. I have review my report and there really isn't anything in there I can dispute because it's all pretty much mine. Except for the stupid library who said I didnt return 2 kids books when I know we did....
Any help on where I should get started would be great!
Thanks


Hey Laura,

I would start by getting your credit report to see whats on it. You don't want to go into things blindly. you can go to annualcreditreport.com . You are allowed a free copy of your credit report once a year, legally.

Once you know exactly what your score is and what is on your credit, I would then ask the advice of a banker and maybe even a real estate agent.

Do they really put un-returned library books on your credit report????

wow. ha ha...that is crazy.


Submitted by shopaholic5 on Fri, 08/07/2009 - 11:54

shopaholic5

( Posts: 281 | Credits: )


Hello,
Had to delurk on this one so I could offer some sound advice regarding the question.

I'm an auditor/underwriter for a nation wide mortgage company, and whole heartedly agree with Shopaholic5 - know thy credit.

From your post, I'm guessing that you have established credit but what I didn't see you mention was additional assets besides the stimulus.

To go off on a diff topic here, you do need some reserves in the bank when applying for a mortgage, and the stimulus you receive will go towards the closing costs, if I'm not mistaken.

Regarding credit - be prepared for questions on any recent derogs, 30, 60 or 90.

If your credit score is below 500, you may need to provide alt credit like a land lord reference or letter from your utilities stating that you pay on time.

Getting a stimulus is great, but also get an idea of what price range to look in...ie if you make at least $3000, you could possibly afford to look in the sale price range between $100,000-$200,000.

Lastly, asking a banker or agent is a great idea, but just beware that generally they work on commission with the idea that you choose them to do business with...don't let them convince you on something your not comfortable with.

And finally, buying a home is exciting, or it can be aggrivating...I know your under a deadline for the stimulus, but it sounds like your taking the right approach towards becoming a homeowner.

Good luck!!!


Submitted by on Wed, 08/12/2009 - 15:19

( Posts: 202330 | Credits: )