Health & Fitness
"Should I Pay Cash or Get a Mortgage?"
Greg wanted to buy a home that was on the market for $280,000. He sold his previous home 3 years earlier, which was a short sale, he got divorced 3 years earlier and was involved in a serious auto accident, again 3 years ago. 2010 was a really bad year him.
Between all these events his credit went in the tank, his credit scores were all in the 400’s. His question to me, can I get a $50,000 mortgage with those kinds of credit scores. The simple answer, someone will give him a “hard money” loan for that amount, but the interest rate wouldn’t be pretty.
After some discussion, the decision was made for Greg to pay cash for the property and over the next few months, settle the 9 collection accounts and keep paying his two installment loans on time, as he has been doing.
Find out what's happening in Manchesterwith free, real-time updates from Patch.
Once we get his scores to where they need to be, getting him a mortgage won’t be an issue.
Find out what's happening in Manchesterwith free, real-time updates from Patch.