The National Bureau of Economic Research said today that the U.S. has been in a recession since December of 2007. They said that the massive decline in jobs in 2008 was one of the key reasons they decided to state why the recession started last year. They estimated that employers have cut jobs by 1.2 million. 

In a statement, White House Deputy Press Secretary Tony Fratto said that even though the recession is now official, it is more important to focus on the steps being taken to fix the economy.

“The most important things we can do for the economy right now are to return the financial and credit markets to normal, and to continue to make progress in housing, and that’s where we’ll continue to focus,” he said. “Addressing these areas will do the most right now to return the economy to growth and job creation.”

So, if you are in need of an economic stimulus package, look into credit repairing your credit. It’s one of the biggest factors lenders look at when determining your risk. Your credit score will also determine your loan rate. The lower the score, the higher the interest rate. You may be able to save hundreds of dollars a month by avoiding high interest rates on your credit cards, auto loans, and home loans. 

To read more, visit: 

http://money.cnn.com/2008/12/01/news/economy/recession/index.htm?postversion=2008120112

Question

I am in the procross of trying to buy me my first home but i have a credit score of 517. I know that my score si low but do you think that i may be able to get a mortgage with a score that low. I also do not have the money to put down for a down payment so do you think that i will be able to get my first home with what i just told you.

Daniel M.

Answer

Daniel

Thanks for your question.  Unfortunately with the market change, a credit score of 517 will not be high enough to get a new mortgage loan. Now a days, you will need a 680 credit score or higher with the best rates going to those with a 720 credit score or higher.

There is good news though…you can become a home owner!

It will take time and a plan, but you can do it!

Some things to consider…first, start repairing your credit.  There are many ways to do this. 

1)    Challenge all questionable negative listings

2)    Pay off all collections, judgments and liens you may have

3)    Pay down your revolving accounts below 30% of their balance

4)    Start building positive credit with a gas credit card or an in store credit card and never be late on these!

In addition, it will take 20-25% of the purchase price of your new home as a down payment.  You may want to consider setting up a separate bank account and put as much as you can into that account each paycheck.  You may also want to ask family for some assistance.  There are also Down Payment Assistance programs out there.

Let us know if we can help you further.  Call us or fill out one of our forms on CreditRepair.com and we will match you to the most reputable partners in the country that may help you achieve your goals!

Thanks,

Candice