Can you purchase a house after you have had your bad credit fixed by an credit fixing agency?
Well if it was done properly and by a reputable agency, then you may be able to get a mortgage. But in truth, most credit repair agencies don't work. They stop the collections, but can do more harm to your credit score then anything else.
Remember this, mortgage brokers see a lot more in a credit report then even the owner does. There is a lot of information made available to only registered brokers.
Some credit repair agencies that charge a fee to improve your FICO score by removing negative, but accurate, information from your credit reports can do more harm. No one can force credit reporting agencies or lenders to remove accurate information from a credit report. Credit repair companies often take your money without delivering what they promise, or provide only temporary improvements of
your score, sometimes by removing accurate information that will reappear later.
As long as you can afford a large down payment (25 -30%) and keep the mortgage under 25% of your total monthly income, you should have no problems. But your credit score will determine your interest rate.
Hope this answers your question.
No one can "fix" your credit. If a default or late payment is reported to one of the Big 3 it can't be erased. Credit fixing sounds like a scam.
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You can buy a house with poor credit. As long as you have enough to put down and a job, most banks will loan you the money. They're in the business and don't make any money if they're not loaning it out.
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Most likely, yes. It really depends upon a lot of factors. If your bad credit is fixed to the point that your creditors settled for less than they were owed, the phone calls may have stopped but your score may be too low to qualify for a mortgage. If enough time has passed that you now have accumulated a positive history, you may have a qualifying score. However, if you are making payments to satisfy debt that exceeds the mortgage lenders threshold for your income to debt ration, they may decline to grant you a mortgage. Use the tool in the link to calculate whether you qualify for the house that you may be interested in. You can adjust factors such as amount of loan, interest rate, down payment, etc, and it will "spit out" a decision regarding whether or not you qualify for a loan.
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http://www.eraevergreen.com/home-tools/calc2.php
Don't be duped into thinking that someone has the ability to remove accurate negative info from your credit file….They can't.
You can always dispute each item on your credit report individually, and for free. If they can't validate, they must remove it. You can just write to the credit bureaus:
Per the Fair Credit Reporting Act, I would like this item validated.
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If your credit has been fixed/dispute by you or whomever and there is no more negative information, and there is positive information, and your score is high enough (and there are other factors also) then you should be able to purchase a home. I would at first make sure that your credit bureau report and your FICO score is correct and up to date before you think about purchasing a home. Take the time now to correct any wrongs or negatives on your report, take the time to learn all you can about credit and learning from you past mistakes, and take the time to save some money for the down payment needed for a new home. There is a lot more to it, but this is a good starter.
Good luck !!!!!
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Well if it was done properly and by a reputable agency, then you may be able to get a mortgage. But in truth, most credit repair agencies don't work. They stop the collections, but can do more harm to your credit score then anything else.
Remember this, mortgage brokers see a lot more in a credit report then even the owner does. There is a lot of information made available to only registered brokers.
Some credit repair agencies that charge a fee to improve your FICO score by removing negative, but accurate, information from your credit reports can do more harm. No one can force credit reporting agencies or lenders to remove accurate information from a credit report. Credit repair companies often take your money without delivering what they promise, or provide only temporary improvements of
your score, sometimes by removing accurate information that will reappear later.
As long as you can afford a large down payment (25 -30%) and keep the mortgage under 25% of your total monthly income, you should have no problems. But your credit score will determine your interest rate.
Hope this answers your question.
References :