Getting a mortgage with bad credit if I have lots of money.?
Ok ,so here’s the deal…i suffered GREATLY from the recession and now I have bad credit…I have the following things charged off on my credit: $150 electric bill, $300 comcast bill $700 credit card $500 walmart card and a $800 student loan…all are either 180 days past due or charged off completely. I just recently got a settlement for a lawsuit I filed over 6 years ago against my former employer for $842,000 dollars…i got the check and put it in the bank yesterday…but now I’m thinking I want to move to Atlanta (I now live in Houston) and buy a house. Can I still qualify for a mortgage of about 2-or 3 hundred thousand dollars since I have so much money in the bank, I dont wanna pay for the house cash cause I want to use this money to invest in. Will the lenders approve me because of my bank account and also, i am not working right now either. PLEASE ONLY SERIOUS REPLYS AND PEOPLE WHO ACTUALLY KNOW ABOUT THIS STUFF
Ok, so I got some good advice but I’m still at a loss…the first thing is: even if I clear the items off my credit by paying them, I am told that they will only be marked as having been paid and that the delinquency still shows on my credit report, which means I’ll have bad credit whether I pay the items or not…which I do plan to do this week. So I will still have bad credit right? also, i am not working…so even if I got a job tomorrow…I would have to work how many months before I can show good proof of income? Also, even i got a job here in Houston tomorrow…I want to move to Atlanta…so how do lenders do it if you are moving to a whole other state as far as job requirement?
If you have cash, you have lots of options. I’m not a banker, but believe they would want you to have some sort of collateral such as a CD before they would give you a loan. Congrats and best of luck!
Surely property is one of the best investments there is,especially buying in a slump as now.
Your mortgage will be based on credit scores and earned income not on a savings account that can disappear quickly. If you put a large down payment and pay a higher interest rate you may get a loan but still need to show income.
It doesn’t matter HOW BIG a house you buy — it depends on the size of your DOWN PAYMENT.
You FIRST goal is to get all those bad marks off your credit by PAYING THEM. You have less than $3000 dollars holding you back. Unless you filed bankruptcy, those accounts are NOT “charged off” — you STILL owe them, and they STILL report to the credit bureau.
When it comes time to buy a house, you need AT LEAST a 50% down payment to obtain a reasonable mortgage. At 50%, the mortgage company is at MUCH less of a burden, and they will offer you better rates, AND you won’t have to pay the Title Insurance that is necessary for lesser down payments.
If you can pay 2-3 hundred thousand DOWN, then you should be able to get a very nice mortage to buy a house worth about $500,000.
I think the first thing I would do is to pay those items off immediately. I mean it’s only like $2500 and clear your credit. A good name is priceless, and that’s just a drop in the bucket for you. And why not buy your house straight out? With the housing market in the toilet right now, you could probably find something for a song. Then you wouldn’t have bad credit, a mortgage to repay, and money to invest. Sounds like a win/win, if you ask me. God knows, if I had that kind of money, I would owe NO BODY A DIME!
You will not be able to get a standard mortgage. You have no job & bad credit. Decide where you are going to deposit the money then talk to them about a portfolio loan. They may do it because of the money you are going to put in their bank. Before I talk to them about it I would pay off the collections. Student loans are never written off & never allowed to be put in Bankruptcy.
Yes, the delinquent accounts will still show but at least they will show paid in full. That is better than just walking away from your responsibilities.
I would buy a less expensive house, maybe even a fixer upper. Pay cash & when you have a job & have been on it for a year, try to get pre-approved to buy a bigger & keep the first house as a rental. Get some decent credit going to show you don’t shirk your responsibilities. Pay everything on time. No blemishes from this point on.
Cripes, pay off those little judgements and be done with it. You owe the money, do the right thing and put that pittely stuff behind you. With no job and just a settlement, you may not get qualified for a loan, and let’s change that to you probably will not get qualified for a loan. Someone with bad credit and no steady income is a risk that most lenders will not take. You are better off to pay cash and take on smaller investments.