Repair Credit Before Applying For Mortgage

Added September 26, 2007 by Ilyce R. Glink

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Summary: Sometimes when you go through a divorce one partner lashes out at the other by running up credit card debt. If the credit cards are in both spouses' names it can be a real problem. What can you do post-divorce if you want to buy a home? If you're low on cash and your credit is bad, you should pay down down and raise your credit score in order to qualify for a mortgage.

Q: I would like to purchase a house. I don't have any money to put down and my credit is bad due to my ex-wife charging up a storm on our joint credit cards (and then not paying them off). Is there a way for me to purchase a house?

A: With the way the mortgage market is going these days, unless you have great credit and at least some cash for a down payment, it'll be tough to buy a house right now.

I think you should spend the next year or so working on repairing your credit. Start making your payments on time and paying off any existing debt you have. Then, you can start to set aside some cash for a down payment.

The number of lenders (other than the VA) offering zero down payment loans at the moment is close to zero -- especially to folks with bad credit, whatever the reason.

Sept. 26, 2007.

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