Looking To Purchase A Primary Residence

jakejacobsen · Joined: 19 Sep 2008 Posts: 2 1.89 Dollars($)

Hi,

I am looking to purchase a home soon. Because of a divorce and thousands in past medical bills, I went into default on several credit cards. I am in the process of settling with them, and have on half. I should have the balance paid in 2-3 months. These have been written off. I have never been late on a mortgage or car payment. My current FICO scores range between 565-595. I have stable and descent earnings, but under $10,000 available for a down payment. The balance beyond the $10K I have will be used to settle the charge-offed credit cards (leaving $10K available for a down payment).

I assume that my scores will improve once I settle out the balance of the charge-offs.

Can I get a mortgage?

Thanks!

Jake

smckaybiz · Posted: Fri Sep 19, 2008 5:37 pm Post subject:

Welcome to the forum Jake!

I would say that once you finish paying off your past due debts that you shouldn't have a problem with getting a mortgage. It really depends on how much of a hurry you are in to buy a new home. Once you pay those credit card balances off you should notice your credit score increasing on a monthly basis. The longer you can wait the better off you'll be. You can slowly increase your credit score while saving up some extra money for your down payment.

It would probably be best if you could just hold off for another year or so if you can find the patience to wait. If not you could probably end up getting a morgage with a higher interest rate in the near future with the intentions on refinancing it once you've improved your credit.

Best of luck!

jakejacobsen · Joined: 19 Sep 2008 Posts: 2 1.89 Dollars($)

Thanks Scott!

Jake

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