Re building credit on my way to a home in Illinois
I am a single mother with a $42,000 income in Illinois. I am tired of renting and my lease is up in Dec. my current scores are as follows 588, 549, and 612. I would really like to buy a home by the time my lease is up. Currently I am disputing a lot of inquiries and collections on my account that will hopefully come off of my credit report. I also have 2 car loans in my account and one will be taken off by Dec. because my brother is going to take me off as a cosigner (is this a good idea? he's never been late and there is only $8000 left to pay on the car) would this affect me or help when I apply for a mortgage loan. I also would like ideas on how to dispute certain things on my report? Anything that can help boost up the numbers.... Finally, I would also like to know if anyone knows any lenders and real estate agents that will work with some one with bad credit like me in Illinois.
Re: Re building credit on my way to a home in Illinois
I can't tell you a whole lot about exactly what a potential lender is looking for, as I've only been through it once. But, I learned a lot about the process, and have a couple things I can point out that may help.
First, it's not as difficult to get a home loan as many people (myself included) were led to believe.
Next, while many people can probably offer bona-fide advice, it's only that. The best way to find out what you'd be eligible for is to look. If you're worried about inquiries, try getting a hard copy of your report and taking that to potential lenders. I didn't, and (combined with other things I've done over the last couple years) have a TON of inquiries now that I'm sure are hurting me. Now, my understanding is that most will still require their own inquiry, however, there's a trick to that, too. Once you have your options somewhat narrowed down to who you want to go through, have them do their check around the same time. The 3 reporting agencies allow a 14 day window where multiple inquiries for the purposes of getting a home loan will count as 1 inquiry, regardless of how many are done. Also, it will not impact your score for 30 days. Once you've shown them a hard copy of your report, and the myriad other information they require (check stubs, bank statements, etc), if they're saying they can offer you a certain rate given that information, you have nothing to fear. If they can't offer you a loan, you don't have to worry about them putting an inquiry on your report.
Hope that helps! Good luck...
Outer Banks Frank
"Success is nothing but luck...Just ask any failure!