So you have bad credit the broker told you? He doesn't return your phone calls and he wants you to do this or that and he can MAYBE get you a loan. Then finally he "had to make a few calls and I got really lucky here" and here is this loan for you and he is sorry but what can a guy do ya know? Here is the skinny on you people with bad credit: Brokers buy LEADS online from the forms you fill out. Those "a" credit people.......they are like 15 bucks a lead to us brokers. You "subprime" people? you are up to 50 dollars a lead! Why is that? because an "A" borrower knows he has good credit and will shop our buts all around the block. The "subprime" borrower is just looking for the first yes they can get and they won't shop us. We can exagerate your credit scenario and charge you enormous amounts of money on the front and on the back. So while conforming credit is easier to process, they are harder to stick with a broker. Our revenues are lower and our service has to be higher. My advice to you? Demand the respect of someone that is about to make a lot of money on you and shop him just like a conforming borrower would! As a matter of fact, shop even more because while there are 20 programs for "a" borrowers there are 1000 programs for a subprime borrower. Do you really think that your broker knows all the programs and will offer you multiple scenarios? Find the three or four brokers and get them to give you GFE's. They will package it all differently but you need to see choice. If a broker sugests an ARM loan make sure to ask why...and ask what steps are needed in the next 2 or 3 years to get you in shape for the next refinance to a fixed product. If he is puzzled....then he didnt look at your future........and you might question weather or not he really has YOUR best interests in mind. Just a thought .
Hey thanks for the advice .... what do you think abojt credit scores that are all about 650 right now --- in oyur opinion, what are the chnaces of getting approved with that? thanks also, my credit cards were close to ther maxs so i got a debt consolidaytion loan and paid off the cards -- will this help at all or just look like i am shuffling around debt? thanks tboy
650 is a great score really...but on the debt consolidation loan..if you get a HELOC..it wont help..shows like a credit card/revolving debt..especially if you get a 60k heloc and then pull out 60k...best to do a fixed second mortgage..makes a big difference.
hey thanks!! actually i got a personal loan ... i asked several times just to make sure (haha) and it will show up as an installment loan and not revolving credit. i don't have a mortgage at the moment, just renting. my rent for my studio is $929. i moved from another place where i was at for 3 years -- the studio there was $1,019. i am sick of paying these outrageous rents with nothing to show for it (not even quality apartment living) and i realized i could probaly have a decent mortgage with the amount i am paying in rent! only thing is i have nothing saved right now for a down payment. lease is up in july! will they take into account the fact that i have been paying an outrgaeous rent for 4 years solid? i have some 120 day lates! (ack!) on my credit report, but the newest is 2 years old. I have no lates in the past 2 years and 1 collection that is not mine ARGH! that i am trying to get removed through validation (keep fingers crossed). i also have a judgment that is satified -- i am going to court at the end of the month to try to get it vacated as i was never properly served (again, cross fingers). i also want to get a car ASAP so i can get off the frakin subway lines -- it's just too expensive to live anywhere near the subway! thanks man! tboy
I did exactly what you suggested and did get better service. Never signed an contracts with the one Mortgage Co. and now they are calling me telling me that i owe them for pulling my credit. They couldn't even get me pre-approved for anything. I straight out told them that I am not paying them anything because 1. I didn't sign the contract and 2. since when do you pay a co for pulling your credit report for pre-approval?
I did exactly what you suggested and did get better service. Never signed a contract with this one Mortgage Co. and now they are calling me telling me that i owe them for pulling my credit. They couldn't even get me pre-approved for anything. I straight out told them that I am not paying them anything because 1. I didn't sign the contract and 2. since when do you pay a co for pulling your credit report for pre-approval?
Excellent! In other words they want what is fast $ for them based on maybe not knowing what they are fully doing, or if they even care? More concerned for themselves and easier? Can you tell us Bankruptcy people what to do when we hit the 2 year discharge date? Scores roughly needed for ballpark programs. 580? 600? 620? 640? 660? 680? 700? 720? Maybe a goal score besides the other information.
whew that is rough....depends on the ltv and whatnot, but there are a lot of lenders that will go one day out of BK AND actually do foreclosure and chapter 13 bailouts.......you do not need to wait the two years after a bk...and everyones situation is totally different (not sidestepping here) so I do suggest that you contact a broker if you have the bk and are wanting to do something.........do yourself a favor and contact 3 or 4 the same day, and fax them a copy of a pre filled out application...then see who gets back with the best deal....if it seems liek a great deal...sign it and lock it..this will make sure that you arent being fluffed.
Re: Re: Have Bad Credit? Get Better Service Lets say in general, nobodys unique situation. The 2 year discharge point is a pretty good goal to wait for? Lets say basic $150k-$200k 10% down. Do the scores mean much at that point? I was just wondering in basic no ones unique situation how the different scores would fall into play.
Re: Re: Have Bad Credit? Get Better Service what's the lowest down payments most legit places will accept? i was reading that if they say no down payment then they are probably not a good company to deal with ... tboy
Re: Re: Have Bad Credit? Get Better Service you can get 1004 financing but in most cases the very leat you will need to bring in would be the escrow account..which is taxes and insurance for the home. I do several 100% loans but some thigns to remember is if the home is 250k......then a 100% loan is 250k....the 5k in closong costs...well that has to be paid somehow. The way to do this is either raise the selling price and have the seller kick your closign costs back or raise your interest rate and have the lender pay your closing costs. And as far as the two year mark this is true....this is the conforming, great rate, easy to get into programs requirement....one thing to keep in mind is dependingupon your area one years worth of equity (home proces rising) will often overshadow any hit you take in a higher rate......if your region is slow real estate wise.....it is wiser to wait......hope this answers your wuestion..if not..keep asking and you'll get through to me somehow!lol
