What if I Have Bad Credit or a Bankruptcy?
Do you pay your bills on time? Have your ever been 30 days or more late on a loan payment or bill? Have you received letters from creditors? Have you had any judgments, liens or collections? How long has it been since these things have occurred? How many times? How have you addressed these issues? These are some of the things that affect your credit score and ability to get a loan to purchase real estate.
If you've never been more than 30 days late and you pay your bills on time, you probably have good or great credit. If you've made a mistake or two, your credit is probably still OK especially if it’s been a couple years.
If you've had a bankruptcy it is possible to get a loan to purchase real estate as soon as the bankruptcy has been discharged as long as you meet other loan requirements such as credit and possibly down payment. This loan may not be easy to find, and many lenders won’t offer it, but if you shop around, it’s out there. Keep in mind that you’ll probably pay a higher interest rate than you would without the bankruptcy on your record.
If you think your credit is good, bad whatever, it’s a good idea to check it yourself once a year to make sure there are no mistakes or fraudulent activity. When you check your own credit, it does not affect your credit score. Here are some web sites to help you check your credit. You can also Google “Free Credit Report” to see other options.
https://www.annualcreditreport.com/cra/index.jsp
http://www.freecreditreport.com/
http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm
http://www.experian.com/
http://www.transunion.com/index.jsp
http://www.equifax.com/
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