Problem-Have $$$, but bad credit. - Posted by CinNJ
Posted by CinNJ on November 16, 2000 at 04:00:17:
I have my eye on 2 properties in my area. A duplex for ~$125,000 and a 5 unit property for ~$160,000. I plan on putting cash down in the amount of $40,000 in whichever property I decide on but have just discovered a MAJOR problem with my credit report that I have to admit is legit.
I ran my credit report and found that I have a $125 charge off from a bank and a $250 charg-off from a credit card company both from 4 years back. Unfortunately like too many recent college grads at the time I got into much CC debt and was irresponsible with my credit. I know that once i pay these off (THIS WEEK), they still reflect on my credit for 7 years I believe. I have been able to save quite a bit of money in the past few years but have never held a position in my industry (Information technology) for more than 1.5 years (another NEGATIVE in lending). To add to that I work most of the past 2 years as a TEMPORARY employee to gain experience in my field (ANOTHER NEGATIVE in lending)…I have now been a consultant for the past 4 months and realive that lenders will take an average of the past two years salaries into account, much like they do for Realtors.
This is my quandry…I am very apprehensive to even approach a lender wth my situation. I grew up (parents were successful Realtors) around real estate and am ready to take the leap, but would like to get some kind of idea what I will be up against with a lender if i ask to see what I qualify for and what I need to do immediately to improve my credit.
Thanks to all in this group, you are most helpfull