: Can I Use the Expanded and Extended Tax Credit Program to Buy a Home in New Jersey if I Don’t Have Perfect Credit?

Can I Use the Expanded and Extended Tax Credit Program to Buy a Home in New Jersey if I Don’t Have Perfect Credit?

Can I use the expanded and extended tax credit program to buy a home in New Jersey if I don’t have perfect credit?

calendarYou might have thought that you couldn’t meet the deadline to qualify for a tax credit on a home purchase because your credit score is less than perfect.  But the expanded and extended tax credit program to buy a home in New Jersey is now law, and you have six more months!  That will give you some room to work on your credit score.
 

The extended tax credit program offers first time home buyers six more months to get a home under contract to qualify for the $8,000.  The expanded tax credit program allows homeowners, who’ve lived in their homes for five of the last eight years, to qualify for a $6,500 credit.
 

The first step to see if you can take advantage of the expanded and extended tax credit program to buy a home in New Jersey is to check your credit score, and work on improvements.
 

The best place to learn about your options to check your credit and increase your credit score is to speak with a mortgage professional.  You can click here for a list of active mortgage professionals in New Jersey…they’re part of the ActiveRain professional real estate community.

billsThe higher your credit score, the easier the mortgage approval process.  Your credit score is made up of your payment history, the amount you owe, the length of your credit history and the types of credit you have.

Very simply, your credit score improves by paying bills on time, paying down credit card debt and having lines of credit.

But a mortgage professional after reviewing your credit report can offer suggestions to tweak your score.  It’s important to speak with some one experienced in the world of home finance because, while not mysterious, credit scores are quirky.
   

This simple step will get you on your way to taking advantage of the expanded and extended tax credit program to buy a home in New Jersey if you don’t have perfect credit.

If you’d like some suggestions on mortgage professionals I’ve worked with feel free to contact me.  And when you're ready to buy, give me a call!


Keller Williams Realty – Atlantic Shore
Laura Giannotta
609-384-6121
Laura@JerseyShoreViews.com
 
 
 
  

     
Comment balloon 6 commentsLaura Giannotta • November 09 2009 07:10AM

Comments

It always worries me when a client calls me up to say they are ready to buy "NOW" but don't have much savings and their credit is bad.  I always suggest they repair their credit first; make payments on time, check to make sure the credit report is accurate, etc.

Even with incentives and tax credits, people need to stop and look at their situation.  Why is their credit bad?  Are they living beyond their means?  Will buying a home put them in a worse position?  Will they be able to pay their mortgage ON TIME?

Talking to a mortgage professional or financial advisor may help put them on the right track.

Posted by Sylvie Conde, Broker, Toronto Real Estate (Sutton Group-Associates Realty Inc., Brokerage) over 8 years ago

This is good advice for buyers.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 8 years ago

Laura...paying ON TIME will help your score go up...but miss a paymetn or be late and it will drop much faster.

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) over 8 years ago

Laura

Thanks for for sharing your thoughts.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 8 years ago

ToulaRosebrock,com

Hi Laura:

The next few months should be very interesting with the new tax credit.

Great advice, first step is to get qualified for financing...

Posted by Toula Rosebrock, Broker/Sales Associate, Realtor, Lacey Township, (Diane Turton, Realtors, Forked River, NJ) over 8 years ago

Not to toot my own horn, but lately I have closed a fair amount of clients with sub 620 credit scores, some well below that. Not all clients with such scores will qualify, NOR should those that qualify necessarily buy a home, nonetheless there is MUCH news stating that buyers with credit scores below 620 can not obtain a mortgage, and it just isn't true. Lenders that can't write those loans put out such info, not those that can :) Hope this helps.

Posted by Stephen Kappre, Helping You Home (KW Hometown) over 8 years ago

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