Well I've been getting into the idea of buying a house but I have one debt on my credit history which was my last cell phone I had because I had lost my job a while back but Im getting ready to pay it off in april 15 which is like 600 dollars. It was back in august and Ive been making payment here and there ever since then but Im struggling at the moment but I got my raise and I can pay it off april 15


How do I apply for a house loan because I was told that would stay on my credit for seven years but this person told me that some lenders would overlook it if its just one item on my credit report.

So talk to me people because Im tired of paying high rent.

The only thing an FHA loan cares about your history is that you have paid off all past debit.
Before I bought my house my credit was in such a huge mess. I went to Consumer Credit Counseling to get all of my credit cards paid off and canceled, then I had to contact any other creditors that showed up and I had to make a deal with them to get them paid off.
Once you get everything paid off, and have proof of the payoff you should be good.

okay austin, thats good to hear. This real estate lady know my mom real good and she told me since I'm only 24 and make somewhat of a good income, that I need to buy a house now while im young and its sinking in my head real good.

If you are struggling some, I definitely wouldn't buy a house. However, a friend of mine bought a house just on his credit score. Basically since it was pretty good, he could get just about any amount, but he only asked for whatever the house was that he was interested in.
But, if you aren't really secure, don't get lured into buying house because it sounds good. That is how so many people are losing them now, because the deal sounding great!

The realtor friend's advice I would take with a grain of salt ,ask this realtor when was the last time they sold a house ,any way this is the business I'm in buying and selling flip houses and unless you are getting ine h-ll of a deal I'd say stick with renting for the type of house you will be able to afford will probably be a fixer upper and will probably bankrupt you ,sure you can secure a housing loan but at what inflated interest rate ,save youe money and concentrate on securing a good credit history then think of buying a home,you have plenty of time .Chico(pops)

I'd listen to Chico.

Just look at the news. The home loan situation that everyone is crying about is because lenders offered a "good" deal and people bought a house beyond what they could afford or refinanced for way more then the home was worth then interest rates started to rise and home values started to drop and so...

The 2 loans you NEVER want to default on are:
1) House
2) Automobile

If your struggling to pay the 600 phone bill, might be better to wait and buy when you know you can afford the 1000+ a month morgage. It is a buyers market right now and you can get a steal of a price, but if you cant be sure you can afford it, then you dont wanna be one of those people that are forclosing....

I am in Chico's boat, my dad and I been fixing and renting houses down here in Florida for the past 10-15 years. If you can't just pay that phone bill off right now, then it is wise not to buy a house. You need some disposable income or good savings if you are going to buy one now, or otherwise have a great secure job, and those are starting to be limited.

Fha will look at your credit history. If you have any outstanding balances that are high, pay those off first. Then make sure that whatever you are paying, that you are not late on any payment in the last 12 months. Last, they will do a debt ratio to see how much you can afford. I was going to buy a house this past january, but because I skipted a few payments to pay my car off early, I now have to wait a year. I just hope the interest rate is in the 5's like it was this past january.

also, they didn't look at my credit score. They just wanted to know if you can afford the payments or not.....Next year, it might change....

Make sure you get a locked in rate and a loan you can pay off early. Read that contract top to bottom before you buy. If and when you get approved, don't go out and find a home for the amount of your approval. The bank approves you above what they should to try and make money. Remember, you want to live a little, so do a honest budget to include savings account, vacations, christmas etc. All I'm trying to say is, don't get in over your head. The best advice I was ever given when I bought a house, was to put 2 months mortgage in cash in a safe deposit box or a fireproof locking box at a relative you can trust. That way if you ever fall behind, you have a safety net. It is also there for emergency repairs, like furnace, A\C, sewer etc.
Buy a modest home with some fix up potential, that you can do later.
One more thing, pay your mortgage each month as soon as you can. You will be amazed how much interest you save each month just by paying 4-5 days before your payment is due. If you can afford it, round up a few dollars each month too. You wil pay your house off much sooner.

Its not that I can't pay it, but ATT screwed up and I still have to pay it, but I have a lawyer as we speak. The lawyer still wants me to do the payments but at the same time the lawyer is looking into the situation as well because she told me that they might have my name mixed up because the rep at ATT said this is Deonta and my real name is DeAndre.

AHhhh! Mistaken identity. Don't you hate it when they do that. I get that sometimes. They think that just because my last name is the same or something then the person they are looking for lives there.

If you are never late on your rent, you would be good to go with a home loan... One late payment on a home loan could make your life miserable.

Find out what kind of home you could buy that would yield the same payments that you are spending on rent. Don't be afraid to go a little bit higher, as you will be able to consider it an investment.

Ask your friends and family about Home Insurance and Property Taxes, that will be an added monthly cost to your Escrow account(part of your home loan), or you could choose to pay it annually as long as you save up several thousands of dollars to take care of them at the end of the year. You also need to consider PMI(Private Mortgage Insurance) if you don't have 20% down payment. It is required.

The best thing I ever did was my first home purchase... The only thing I regret is that I didn't do it sooner..... I've never missed a payment, and before my purchase I never was late on rent..... First comes rent, then comes everything else..... It's nice to have a roof over your head...