Bad Credit & Home Loans?

My fiancé and I are in the process of purchasing a home. We are at the early stages (basically saving every dime). What I am concerned about is I am 23 years old (him as well) and I have terrible credit. I made very stupid decisions when I was 18. I have 5 things against my credit report. He is pretty good credit. Since we are both going for the home loan I know they will be taking a look at both our credit history, but I don’t want my credit faults to get turned down. Here are a few questions if anyone can answer it would be *greatly appreciated* Do any unpaid debts of mine have to be paid off before I can be approved for the loan? What are the chances we are denied a loan because of my bad credit? Thank you.

Why banks want you to pay off debts: These collection agencies tend to sue you right before the statute of limitations is up. They can garnish your wages and tap into your assets. With the lower income - you may not be able to afford the mortgage payment later on That's why it is so very beneficial to pay off debts on your credit reports. Just make sure you do it right - ask here or get that book that I told you about in the other answer

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