Proven Steps to Mortgage Approvel!

 

 

My credit is poor, the minimum payment on my long-term debt is 55% of my gross income, and I have no money for a down payment. Can I qualify for a mortgage? Every loan originator has had this inquiry.

 

The other night, I received an application similar to this. The client estimates his score to be 540 and hasn’t any money for a down payment.  Although he has some collections, he doesn’t have any long-term debt.  Can he buy a home? Of course not! Can he buy a home a year from now? Maybe! It really depends on how important owning a home is to him and whether or not he is willing to make the effort and sacrifice.

 

If this sounds like you, I recommend going to Experian.com and getting your Experian Score and credit report for $1.  Although you could go to annual credit report.com and get a free report, having an idea of your score is worth the dollar. Having a score provides a baseline. The better VA and FHA loans require a 640 middle credit score. Knowing your current score and the score you need allows you to set realistic goals and create a plan and time frame to achieve them. Either the Experian or annualcreditreport.com report will reveal the reason why the current score is so low.

 

For most people, increasing the amount of available credit is the easiest way to quickly raise their credit score. Available credit accounts for about 135 points of your credit score. One of my clients just improved his score 68 points in 10 days by paying his credit cards down below 40% of the credit limits. Paying your cards to 13% or less of your credit limit will result in the greatest score.

 

This applicant isn’t getting any of the revolving points. Getting a secured credit card is a good way to change that. I recommend the Public Savings Bank Secured Card. Public reports to all 3 bureaus, does not run your credit, and know one can tell the age of the account, or the fact that it is a secured card. This is an excellent way to obtain some of the 135 revolving points.

 

If there are mistakes on your report, I can provide a packet of credit dispute letters that you can edit to fit your circumstance. Although I have clients who have been successful using these letters, most people do better working with a credit restoration company.  The company I recommend is USCCRA. Typically, they are able to raise scores 100 points within a year. One of my recent clients had a middle score in the 570s. He joined USCCRA and had a 682 middle score 8 months later. He was able to buy a $190,000 home with a 100% VA loan. A few weeks ago, I was invited to his house warming. He now owns a 2200 square foot house on 5 acres overlooking the valley. Talk about a happy client!

 

There are many misconceptions about credit reports.  I have seen many people try and correct their credit by paying off collections, or old past due accounts. Instead of improving their score, they send it into a free fall. Their good intentions resulted in a score that was considerably lower than where they started and the damage will affect them for years.  I have the experience to help you avoid these mistakes.

 

I know I can help put you in a position to purchase a home. Yes, it may take a year, but if this is your dream, you can make it a reality.  Please get a copy of your credit report from either Experian or annualcreditreport.com. Once you have the report, we can get together and determine what needs to be done. I can help you, but you need to be willing to do the heavy lifting. If you are willing, you too will be a proud homeowner in a short time.

 


 

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