If I try to get a new home with the same company that I have my current home with, do I have a good chance?

Question

I have a home, I'm selling and trying to buy a new home. My credit is bad. But I have never missed or been late on a house payment with the company I'm with now. Do you think that they will approve me for a new house in the same price rang, although my credit is bad. Also my credit was not good when I got the first loan with them the first time. It was 593 then and 540now, which is rising. What do you think.

Answer 1

Why don’t you ask your lender before you start trying to sell your current home? You probably don’t want to do that if you lacked the ability to buy another.

My non-professional guess is that most, if not all, lenders would be reluctant to extend financing to someone with such a low credit score in the current lending environment.  

You may have paid your mortgage on time, but something tells me that’s not the case with all of your bills – or you’re really over extended – and lenders care about how you manage credit across the board, not just in one area.  

Answer 2

Unlikely.  Your new loan won't make it through underwriting.  Lenders have really tightened their restrictions.  

Best to stay where you are until you get your score over 620.

Answer 3

how did you get a home with bad credit?

Makes no sense.

IF you pay your mortgage perfectly, then, do the same with all

the other bills.

Something is not .........

Answer 4

What do I think?

I think you will not be getting a loan.    540 is extremely bad.

Answer 5

I think it will work.  When you call your lender, ask who they "sold" the original loan to.   If that investor has been happy with your on-time payments, they will loan you more money.