For those of you who want to purchase a home and have No Credit, this is for you. No credit doesn’t mean bad credit.
My husband and I wanted to purchase a house and settle down with our 3 year old daughter. We had no credit. My husband has always paid cash/check for everything; Even our vehicles. He believes if you don’t have the money, you don’t buy it. Everywhere we went and everyone we talked to said get a credit card. We were told we couldn’t get a loan without credit. We needed to start building credit. This did not sit well with us.
A lot of research later, finally found someone who said yes it could be done. Best of all it can be done without getting credit cards you don’t want or need.
I’m here to tell you it can be done. Before you start looking for a house get yourself prequalified . Getting prequalified will let you know what price range you need to stay in, hopefully keeping you from getting in over your head. Now I know right now your saying to yourself that’s the problem. You will need to do a little research. Find yourself a Mortgage Banker in your area. Contact your local Mortgage Bankers Association, they should be able to give you a list of Bankers in your area. When you find the Banker or Mortgage Company ask about potential programs for families with NO CREDIT. Different towns, counties, and states will have different programs. Don’t hesitate to use more than one Banker/mortgage company to compare rates.
You might get a 6.7% interest rate from one, and 6.0% from another. Make sure your informed about discount points before you decide on having any. These all make a difference over 30 years. Know the differences between VA, FHA, and Conventional loans. Ask for a Good Faith Estimate in writing. If at signing the estimate differs from the final numbers you need to ask why. This will probably be the biggest purchase of your life. You need to walk away feeling good. Good Luck
I am not a Broker, or Realtor, just your average house wife who had to jump through hoops to try to buy a house. The information above is to inform you there are options out there other than getting credit cards to establish credit. Some of these loans can use past and current rent, utilities, and other bills. You will have to prove that you indeed have no credit, not bad credit.
