I've been self-employed for 3yrs with a good savings account but my credit score is below 600. Can you please advice me on what to do. I need a home
(0) | asked by: Jason Whyte | share | 47 months ago | Report
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Hi Jason, I know a lender that will help you. Or your Realtor may be able to help you find the right lender.
The best thing for you to do is find an agent local to your area. Ask them for a local lender recommendation. Usually self employed buyers can qualify with 2 years of tax returns while being self employed. Have the lender check your credit and then they can make suggestions as to how to bring up the score. Sometimes there are unpaid medical bill, etc. that you are unaware of that make a difference in the number. Your local lender will be a great resource to get the process started and then the agent will be able to get you into a great home.
It is possible a lender can work with you on alternative trade lines. I would advise that u speak with a lender in person, take all of your documentation such a tax records, your P&L statement, and bank statements to a good lender.
Dear Mr. Jason Whyte, How far below 600 is the question. There are some loans which are offered for those with a credit under 600. I refer clients to a lender I work with who helps people track and improve their credit score. I recommend you inquire on that. Your employment and savings are two other critical factors, so that will help you along.
I would recommend that you get in touch with at least 2 lenders to get some answers on this one. I am here for your real estate needs.
Self employment plus a low credit score makes it more difficult in obtaining a loan, not impossible. Familiarize yourself with current lending qualifications by doing a simple search on the web. Before you go directly to a Lender, educate yourself, as much as possible. You will then know what to ask of a Lender before your credit is "pulled". Each time your credit is reviewed there is a downside to your credit rating. Real Estate is not only about location, location, location...it is also about education, education and more education. There was an old advertisement that said, "a smart consumer, is an educated consumer", (something like that). This applies to Real Estate as well. You may want to consider renting a while longer, saving more money for a larger down payment, also making it easier to get a loan at a better interest rate. Your credit score is tied directly to the interest you'll pay on a loan.
Talk to a lender or mortgage broker to get prequalified. If they can't prequalify you at least you know on what part of your credit history you have to work on.
Shop around for your loan. If your score is at least 580, a lot more lenders are willing to work with you. I always recommend to talk to at least 2 people to get a better understanding of where you stand. Good luck to you!
Sometimes simple adjustments can increase your score dramatically. The first thing you need to do is pull your credit report from all 3 agencies to determine if there is any negative information that is incorrect. If there is, you would need to have it corrected. You can do this yourself for free by writing and disputing the information or call a non-profit credit counselling company to help you. Then contact a reputable mortgage broker to assist you further with the process. Some brokers have programs that will analyse you credit report and suggest ways of increasing the score, such as consolidating some credit card accounts and closing others.
Financing can be different for those of us (like Real Estate agents) who are self employed. Your best bet is to speak with a knowledgeable loan officer. I have one I highly recommend. He will take a look at where you are now (credit-wise) and tell you realistically what you need to do to improve your score. He has helped many of our buyers repair their credit and be able to purchase a home. Please feel free to contact me for his information.
There a lot of options. My advice is to speak with a direct lender and see what programs they have. Feel free to email me or call me and I will put you in touch! Have a great day and good luck!
CREDIT COUNSELING - From a Free HUD counselor in your community!! They are out there - there is no cost....FREE....credit counseling!
The best thing to do would be to connect with a reputable mortgage loan officer and/or credit counselor to determine the best way to raise your credit score. I'd be happy to connect you with someone - just email or call if you'd like some assistance.
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