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MyGoldsboroAgent.com believes that Real Estate
Agents have a larger responsibility to it's clients than just
finding the right home. One of those responsibilities is helping
the client understand credit*. These are just a few of the
credit issues that are very important if you are planning
on purchasing a home. Please call one of our agents for more
detailed information or we will recommend a lender for you to speak with. The lender will
be glad to view your credit and let you know of any issues
that may need to be corrected. The lender will also give a pre-qualification
so you know how much home you can afford and how much potential
payments may be.
*Our agents are not certified credit counselors but are educated
on the subject.
Quick Credit Pointers
- A few late payments may be
okay! Depending on how late you were or how recently they
were made they may not affect your ability to get a mortgage.
 Credit
Killers: Foreclosures in the past 7 years, Bankruptcy
at less than 2 years since discharge, Reposessions, Evictions,
Unpayable Collections, Unpayable Judgements, Unpayable Medical
Bills that are not due to a hardship.
- Are you divorced or have you co-signed on a loan that someone
else claimed responsibility for and has caused you to have
credit issues? If you have documentation that shows you are
not responsible for a debt, you may be able to have this debt
eliminated from your credit report.
- If you do not have one of the Credit Killers above,
generally 1 year of perfect credit you can purchase a home.
- Do not open any new credit or purchase anything
on credit once you have pre-qualified for a loan until you
have actually closed
on your new home.
- Are you brand new credit? Never had a formal loan on anything?
It's Okay! The lender may need to see up to six items that
show you make your regular bills on time. These may be utilities,
car insurance, renters insurance, rent, payments to an uncle,
etc. Utility companies will supply a letter stating or a printout
showing payments made on time.
- You do not have to have a bank account to pre-qualify for
a loan. A lender may advise you to open one if it is a full-service
bank you are qualifying with.
- If you have collections, judgments, or unpaid medical bills
and you want to purchase a home in the future... PAY
THEM! The sooner you pay them, the sooner the clock
starts ticking until you can get a mortgage and achieve homeownership.
- To improve your FICO or Beacon Score, try to keep your
credit card balances paid off at best or at 50% or less of
their maximums.
- Do not close out credit card accounts unless advised by
a lender.
- Unless you are applying for a strict conventional mortgage,
your credit score may not affect your interest rate. If you
have a score of 620 or higher, this is considered "A"
credit and will qualify you for a mortgage. The higher the
score, the more flexible the lender will be with some issues
such as how you are paid, allowances, self-employment, etc.
Scores below 620 may cause you to have a slightly higher interest
rate, but you may still be able obtain a mortgage.
The pointers above are just some of the credit
basics MyGoldsboroAgent.com explains to all of our clients
if necessary. For more in depth information check out these
links: |
