Don’t stresss out about credit

Many client come to us and they are worry that they we’re late on 1 mortgage payments a few years ago or something else. First there are time limits that are place on these issues. Even if you think your credit might have these issues, it is best to come in and have the expert look at it. We look at credit all day long and have help people reestablish their credit.

Like bankruptcyit stays on your record for seven years. But you can make the loan process a lot easier if you understand how lenders look at credit and take some steps to clear yours up before you actually apply for a loan.

Knowing your credit score

Lenders have been looking over the past several years at different ways to streamline, and even automate, the home loan business. Many lenders–as well as the secondary mortgage market’s big players, Fannie Mae and Freddie Mac–now use credit scoring as one way to speed up the loan process. But it can benefit you as well. People with higher credit scores usually are rewarded with lower interest rates.

Your credit score is a number between 400 and 700 that most consumers never see during the process of applying for a loan. But this statistical analysis of the likelihood that you’ll pay back a loan on time could be what literally stands between you and a home of your own. A credit score draws from 100 variables in your credit report including delinquent bills, your outstanding debts, the number and amount of balances you owe your creditors, your credit history and what types of credit you have.

the magic number for credit use to be 680, but recent changes to Lender’s requirement makes it necessary for us to look at your whole financial picture.

No No on your credit. All of these credit repair may be able to help you with.

What lenders don’t want to see on your credit report

* Too many late payments
* Too many credit inquiries
* Overextended credit
* Liens
* Paycheck garnishments
* Bankruptcy

Don’t take a declined to heart. It just means a little more work.

If you are turned down for a home loan for credit reasons, find out what the lender didn’t like and take these steps to remedy the situation:

1. Ask your lender for a copy of your Residential Mortgage Credit Report, a compilation of your personal credit profile for past seven years issued by a credit bureau.
2. After reviewing your report, ask the credit bureau for a re-investigation of any questionable marks on your record. The bureau should provide a form to make this request.
3. Once you have filled out the form, the credit bureau has 30 days to investigate your claim and change your record. If you are correct, or if the creditor who gave you the bad mark can no longer verify the information, the credit bureau must remove that information from your report. Incidentally, a credit bureau may remove an item summarily if checking the item is more trouble than it is worth.
4. If the information in the report is correct, check the date of the bad mark. With few exceptions (such as bankruptcies) the credit bureau may not keep old credit information on file for more than seven years.

TIP: Be sure to check that all closed credit card accounts are labeled “closed by consumer” on your credit report.

Other options

Putting a bigger down payment will help sometimes because Lenders will feel that you have more at stake to lose if you default on the loan.

Having a bankruptcy

Bankruptcy happens, but if you have made efforts to reestablish your credit like starting new credit accounts and have maintain a good record. Then these good factors will out weight the bankruptcy.

There are many loan programs for many types of credit to choose, so just give us a call and we will help you find the right one.

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