Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
anyone have not so good credit and buy a home? C'mon in please!
So DH and I are starting the process to look into buying a home. I filed for bankruptcy three and a half years ago, but since then have managed to get the rest of my credit under control, and my credit rating isn't awful considering the bankruptcy. We met with the bank today, and they told us that we did qualify for a loan that is about what we were hoping for, but that the bank would require something called a mortgage insurance fee that would be about $200 a month due to our credit issues. Has anyone else had to do this or something similar? Please educate me, I'm a newbie to all of this!
***** formerly known as starfishbride *****
Re: anyone have not so good credit and buy a home? C'mon in please!
My credit score was in the toilet for YEARS until I finally manned (or womaned) up and dealt with it. I was able to get it under control, and it is higher now than it has ever been. I've linked this before when this question was asked, but my story about how I turned it around is in this post of my blog: http://www.lotsofsteps.com/2012/05/youre-clear-for-take-offyoure-cleared.html .
That being said, MANY people pay mortgage insurance. If I'm not mistaking, if you are putting less than 20% down, most people have to pay it. If you are doing FHA, you definitely have to pay it. It's not a huge deal to us, especially since we got such a great deal on our house, but it is a very big deal to some people. Weigh your options, and do what feels best for your family.
Oh, and congratulations on turning your credit around! It is a hard thing to do, but it is so worth it!
we are in the process of having a home built. I consider us lucky bc my wife short saled her condo (we got fed up with it on the market for a year +). We thought it was gonna hurt her credit so much that it would severly affect our chances at buying our first home. Luckily, she did have near perfect credit, and mine was good (730s) She only took a 70 point hit. We found a bank willing to work with us, and got us a rate of 4.125 just this week, so we locked.
We're only putting 15% down, so we'll have PMI for a short time ..we'll take it though! It is possible by all means, just need to save a decent DP and do what you can to improve your credit in the meantime
I ended up filing for bankruptcy almost 5 years ago when I finally got wind that my ex husband had opened credit cards in my name had them for years and never paid, my score tanked. BUT after the bankruptcy I made sure I paid all bills on time and since I could not open up a credit card I opened a secured card through my bank which helped me build back good credit. I also paid for Lexington Law services for about 6 months and they were able to get some negative things off my credit that my numerous letters to credit agencies could not. My score had tanked down to 580 and after all was said and done I was able to raise it almost 110 points to 690. I thought it still would not be good enough but we qualified for an FHA loan. We will have to pay PMI for the first couple of years but I believe it is worth it. We also locked in a rate of 3.75 which is not bad at all given the circumstances.
We have extremely good credit and no debt and still need to pay PMI (loan insurance) because we did not put 20% down. I think that's pretty standard; it just protects the bank/lender in case you can't pay the loan. Once we reach 20% paid on the loan, we no longer have to pay PMI monthly.
Our PMI is about $90/month. It obviously would be different in each circumstance.