3:59 pm ET
November 16, 2011 May 20, 2015
Q: Can I qualify for a home loan? I am getting ready to fix my minor credit issues to get ready to try to buy a house. I have had a job for a year making a good amount an hour. Although I have few hours right now, I am getting more when my sister moves on in February. I am an independent contractor though, but do receive paystubs, just no taxes are taken out. I was also hoping for help with down payment and closing costs. I do have someone who could sign with me, if I can’t alone. Problem with that is he has bad credit, but makes about $3500 a month. He’s thinking about filing bankrupcy, would he help with a loan with bad credit or a bankrupcy even with the money he makes? Is my employment length going to be a problem? Just hoping my efforts are not a waste of time as I really hate to pay someone elses mortgage by renting.
2) Check your credit and do what you can to improve your credit score.
3) Pay your bills on time.
4) Most importantly, tell the truth, misrepresentation can cost you.
Many lenders are hiring more loan officers. They are convinced that current low rates are going to bring many more new and refinance loans in the next 18 months or so. Mortgage rates have been decreasing since April, closely tied to the unsteady economy where wary investors are putting their money in safe investments like Treasury Bonds. As these yields go down interest rate goes down as well. In other words, the
unsteady global economy equals good news for the home buyer acquiring a mortgage and home owners who are refinancing their home loans.
Even though you are self-employed, as long as you can provide decent and accurate documentation there is no reason you shouldn’t be able to secure a home loan.
A: Please don’t give up with your sincere efforts to purchase a home! At the moment your situation will be a bit challenging for a lender to qualify you for a home for several reasons:
1. You need to have your credit repaired and in good shape prior to you applying for a mortgage loan. Contact me for a national credit repair firm that can help you to repair your credit within 6 months.
2. Your hours at work need to be consistent enough that your yearly salary is enough to afford the home price you are seeking. Everything is based on gross annual income
3. The person that would be helping you is a hinderence because of his current credit condition. A bankruptcy will set him back 3 to 4 years if not longer on a home purchase, he is better off doing a credit repair like I recommended to you .
4. Renting for a year although not ideal could be a good fit. Speak with your local agents about Lease Option- allows you to rent with the option to purchase in a specific time. Great for individuals with a few hiccups on their credit.
Best wishes! Contact me directly with any questions.
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